Nairobi cements its place as regional hub for multinationals, diplomatic missions

Occupier activity remained healthy across multinational corporations, financial institutions, professional services firms, technology companies and diplomatic organisations in the first half (H1) of 2026, according to a market update by Knight Frank.

It says Nairobi continued to strengthen its role as East Africa’s principal commercial, financial and diplomatic hub, attracting regional headquarters and corporate expansions.

During the review period, several organisations announced new office investments, including Schneider Electric, which established new offices in Nairobi, and Glovo, which unveiled a new headquarters as part of a broader Sh10 billion investment programme in Kenya.

This reinforced Nairobi’s position as a preferred destination for regional operations.

“Sustainability continued to reshape the office market during the review period. Occupiers increasingly prioritised buildings offering internationally recognised green certifications such as EDGE and LEED, reflecting broader corporate ESG commitments and a growing focus on operational efficiency. Energy-efficient buildings capable of reducing utility costs while supporting employee wellbeing continued to command stronger occupier interest and improved retention rates,” the H1 update notes.

Developers similarly maintained a strong emphasis on sustainable design, incorporating energy-efficient systems, water conservation technologies and wellness-oriented workplace environments into both new developments and refurbishment programmes.

Government and institutional investment also continued to support office demand.

The National Treasury announced plans to acquire Jubilee House within Nairobi’s CBD for approximately Sh2.5 billion, while several major public office developments progressed during the review period.

These included the proposed Judiciary Headquarters in Upper Hill under a Public-Private Partnership framework, Cabinet approval for the development of a new Supreme Court Complex, the proposed Justice Centre for the Office of the Attorney General, and the commencement of Waajiri House in Upper Hill and Wakili Towers in Lavington.

In addition, the government allocated approximately two acres in Upper Hill for the establishment of a new institutional headquarters, reinforcing Upper Hill’s continued importance as Nairobi’s premier government and commercial office district.

“Plans for a new United Nations Assembly Hall and continued progress in the diplomatic hub of the capital Gigiri, further underscore sustained institutional confidence in Nairobi as a regional business destination. Nevertheless, policy developments presented mixed implications for occupier demand. The announcement by the United States administration of its intention to withdraw from several international organisations introduced uncertainty regarding the future footprint of certain donor agencies and development organisations operating in Kenya.”

According to the update, although the immediate impact on office demand remained limited, the announcement has prompted closer monitoring of future space requirements among multilateral institutions, many of which occupy substantial office accommodation within Nairobi.

Despite improving occupancy levels, the report says Kenya’s commercial office market continues to favour occupiers.

Elevated vacancy across secondary office stock, coupled with limited rental growth, has enabled tenants to negotiate favourable lease terms, fit-out contributions and rent-free periods.

Consequently, occupiers continue to leverage competitive market conditions to relocate into newer, higher-quality buildings without significantly increasing occupancy costs.

The update says the only notable prime office completion during H1 2026 was Fadaq Park (277 Brookside), a 70,000 sq. ft. Grade A office development in Westlands. Nevertheless, the development pipeline remains substantial.