Co-working spaces register 5% growth as demand soars post pandemic

Kenya is emerging as a top destination for companies looking to venture into the co-working spaces business within the region, with a 5% growth in demand post-pandemic. CNBC Africa's Aby Agina sat down with Khalil Ketari, Head of Development at Wojo, to discuss the market trends and opportunities in Nairobi. Ketari painted a positive picture of the co-working sector, highlighting its bright future due to the increasing market share it is gaining in the real estate and commercial property sectors. He emphasized that the key driver for this surge in demand is the flexibility that co-working spaces offer, allowing corporates, SMEs, and local players to opt for a service agreement rather than locking into a long-term lease or heavy investment. This convenience has accelerated the development of co-working spaces in Nairobi, making them a popular choice for businesses in Kenya. However, Ketari stressed the importance of offering quality products in the co-working sector beyond just providing a desk and good Wi-Fi. He noted that customer experience plays a significant role in meeting the rising demand for top-notch co-working spaces in Nairobi. The market valuation for co-working in Nairobi currently stands at around 5% of the office market, which is in line with international trends. Ketari highlighted that Nairobi's market mirrors the global landscape, making it an attractive investment hub for co-working spaces. In terms of competition, Ketari acknowledged the presence of strong players in the market but emphasized the focus on providing a unique service that integrates co-working spaces within a hotel ecosystem. This innovative approach differentiates Wojo from its competitors and aims to meet the growing demands of business travelers, corporates, and SMEs. The entry of upscale brands like Pullman into the Kenyan market holds great promise for investors and players in the co-working space. Wojo's integration with Pullman and Mercure hotels in Nairobi creates a dynamic business environment that caters to a range of clientele, further driving growth in the sector. Looking ahead to 2024, Ketari expressed optimism about the market's outlook, citing a solid pipeline of sales and the strategic positioning of Wojo in Nairobi's Upper Hill area. Challenges such as executing business strategies effectively and ensuring top-notch customer experiences lie ahead, but Ketari is confident in Wojo's ability to navigate these obstacles. The advanced ICT sector in Kenya has played a pivotal role in facilitating business growth for companies like Wojo, allowing for smooth integration of digital services and innovative solutions. The sophisticated market environment in Kenya presents ample opportunities for investment and product testing, positioning the country as a key focus area for Wojo's expansion plans. With Pullman set to open its doors in the first quarter of 2024, Wojo is poised for further success in the co-working sector in Kenya, offering a unique blend of workspace and hospitality services to meet the evolving needs of businesses in the region.