According to global property consultant Knight Frank, Kenya has seen a significant increase in office space uptake, surpassing the continent’s average. This surge has compelled property owners with older buildings to undertake substantial renovations to stay competitive and meet evolving market demands.
The consultancy’s biennial 2024/25 Africa Report indicates that office occupancy levels in Kenya have risen to 77 percent, slightly above Africa’s average of 75 percent. This increase follows a recovery from a 60 percent occupancy rate recorded in 2022, largely due to the gradual return to in-office work post-pandemic.
In Kenya, the current office occupancy rate stands at 77 percent, driven by a limited supply of prime office spaces. By the end of 2024, only 617,000 square meters of new office space are anticipated, while demand remains steady.
Mark Dunford, CEO of Knight Frank Kenya, noted a continent-wide increase in demand for Grade A office spaces, particularly those with environmental, social, and governance (ESG) ratings. “This reflects a global shift towards more sustainable buildings, as the built environment is responsible for 40 percent of global carbon emissions, and there is a direct correlation between talent attraction, retention, and the occupancy of ESG-compliant buildings,” Dunford stated.
This evolving occupier behavior is prompting developers to renovate older buildings to align with the growing demand for ESG-compliant Grade A offices. Dunford added, “This trend is already observable in various markets as office landlords strive to maintain demand and occupancy levels.”
Knight Frank’s flagship report for Africa also highlights a shortage of genuine Grade A supply, exacerbated by a limited development pipeline, presenting clear opportunities for developers. Additionally, co-working spaces are gaining traction in countries like South Africa, Nigeria, and Kenya, with new leases from companies like Regus, Spaces, and Ikigai catering to the rising demand for flexible work environments.
Kenya’s Office Space Surge: Outpacing Africa’s Average Demand
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