Co-working space provider Kofisi is planning to expand its presence in the food and beverage business as it targets Kenya's meetings and events market to return to growth. The company will work with specialist partners on food and beverage services as it changes its operating model to focus on meetings, conferences, and events to improve occupancy. This move aims to maintain high occupancy rates and strengthen revenue streams in Nairobi and other African markets.
Kofisi offers private offices, meeting rooms, and shared facilities through memberships for clients like freelancers and remote workers. The company has existing bistros and cafes that serve drinks and quick meals to members. It recently introduced catering menus for corporate meetings, workshops, and private functions. This expansion builds on Kofisi's current services, providing a more comprehensive offering for its clients.
As part of its strategic shift, Kofisi has scaled back its Kenyan footprint, closing its Karen and Upper Hill outlets in December 2025 to focus on larger centers targeting corporate clients. The company aims to explore hotel-style services and economies of scale by moving to larger locations. This change will allow Kofisi to enhance the client experience with a mixture of community spaces and investments in service.
Kofisi's CEO and founder, Michael Aldridge, stated that the Nairobi centers continue to operate normally during the transition. The company plans to seek new investment to support expansion into other key markets, which have not been disclosed. This investment will help Kofisi grow its presence in the African market and increase its competitiveness.
The changes align Kofisi with a strategy focused on larger-scale workspaces and enterprise customers, compared to cheaper, individual-customer memberships. The company's model is similar to the American company WeWork's and is part of a booming global industry targeting startups and large companies seeking collaborative and adaptable workspaces without expensive, long-term leases.
Kofisi reported a $3.2 million loss for the year ended December 2024, reversing a $16.28 million profit recorded in 2023. Despite this, the company's revenues rose 24.5 percent to $10.27 million in the year ended December 2024 from $8.25 million a year earlier, amid higher occupancy. Kenya accounted for $7.6 million, or 74.4 percent, of the company's 2024 revenue.
The company operates in several African countries, including Nigeria, Tanzania, South Africa, and Morocco, with Kenya being its largest African market, accounting for four of the 11 co-working spaces it operates on the continent. Kofisi's occupation rates across its offices averaged above 90 percent in the review period, demonstrating its ability to maintain high occupancy rates.
Key points
- Kofisi is expanding into the food and beverage business to target Kenya's meetings and events market.
- The company is shifting its focus to larger-scale workspaces and enterprise customers.
- Kofisi reported a 24.5 percent increase in revenue to $10.27 million in 2024 despite a $3.2 million loss.
