Kenya’s average office occupancy rate has increased by 5% to reach 77%, surpassing Africa’s average occupancy rate of 75% due to limited supply, according to recent data from property firm Knight Frank.
Westlands has recently seen the arrival of new flexible operators such as Regus, Spaces, and Ikigai, further establishing the area as the nation’s preferred office hub.
Mark Dunford, CEO of Knight Frank Kenya, noted, “There is a continent-wide surge in demand for grade A offices, especially those with environmental, social, and governance (ESG) ratings. This trend aligns with the global shift towards more sustainable buildings, driven not only by the fact that the built environment accounts for 40% of global carbon emissions but also due to the direct link between talent attraction, retention, and the occupancy of ESG-compliant buildings.”
The report states, “Although there is optimism around flexible offices, prime office rental rates have declined by 15% over the past four years to $13 per square meter, due to a historical oversupply. However, this trend is expected to reverse this year as the supply imbalance begins to diminish amid rising deal activity.”
The 6th edition of Knight Frank’s Africa Report 2024/25 attributes this rise in office occupancy to the gradual return to workplaces following the pandemic-induced disruptions.
However, Kenya reported a limited supply of prime office space, with only 617,000 square meters expected by the end of 2024, and steady take-up levels anticipated.
Despite rising occupancy rates, Kenya’s office spaces have attracted lower rents compared to markets like Uganda, Egypt, South Africa, and Nigeria, which continue to experience increased demand for co-working spaces.
The report also highlights a preference for flexibility among office occupiers, particularly in Westlands, Kenya’s primary office hub.
Dunford added, “This occupier behavior is prompting developers to refurbish older buildings to meet the increasing demand for ESG-compliant grade A offices. This trend is already evident in various markets as office landlords strive to maintain both demand and occupancy levels.”
