A landmark transformation is underway in Nairobi! The iconic former Hilton Hotel in the city's CBD, which closed its doors in December 2022, has been given a new lease on life. After a period of searching for a strategic investor, the building now houses a vibrant co-working space, marking a significant shift in how Nairobi's business landscape is evolving.
Tulivu Co-Working Space has taken over the prestigious location on Mama Ngina Street. This modern workspace is designed to cater to the needs of entrepreneurs, small businesses, and corporate teams seeking flexible and dynamic office solutions. During the official launch, Tulivu's Centre Manager, Blessed Muthoni, shared her enthusiasm, stating that the new space represents a "new chapter in the way Nairobi works." She emphasized the focus on functionality, design, and service to support the modern professional.
The co-working market in Nairobi is booming, with over 60 spaces currently operating. These spaces are primarily concentrated in key areas like Westlands, Upperhill, the CBD, and Karen. But here's where it gets interesting: prime office occupancy rates are on the rise, reaching 77.7% in June – a 5% increase from January. This surge in demand is largely driven by co-working operators and business process outsourcing (BPO) firms.
The sector is becoming increasingly selective, with a clear focus on premium assets. Properties with strong environmental, social, and governance (ESG) credentials are seen as the most likely to succeed in the long term. Industry analysts agree that quality, flexibility, and strategic positioning are now the defining factors for a resilient market.
The facility's inauguration was graced by Nairobi County’s Executive Committee Member for Business and Hustler Opportunities, Anastacia Nyalita. This event highlights the city's embrace of shared and serviced offices, a trend fueled by changing work patterns and the rise of hybrid models.
In the first half of the year, significant expansions were seen in the co-working space, including KOFISI Kaskazi’s 90,000-square-foot workspace in Westlands, Workstyle’s move into The Mandrake, and the International Workplace Group’s (IWG) continued rollout of its Regus and HQ brands. Teleperformance also opened a new centre at Two Rivers International Finance and Innovation Centre, with the potential to create up to 5,000 jobs.
However, not all buildings are thriving. Older and less adaptable properties are struggling to attract tenants, putting pressure on landlords to either renovate or lower rental prices. And this is the part most people miss: Knight Frank projects that developers will remain cautious about new office projects in 2025, instead focusing on quality refurbishments and sustainability upgrades.
Tulivu's new facility offers a comprehensive range of amenities, including private offices, co-working desks, meeting rooms, a content studio, and a conference hall. Do you think this shift towards flexible workspaces is a positive development for Nairobi? Are you seeing similar trends in your city? Share your thoughts in the comments below!
