The former Hilton building in Nairobi has found an occupant after several years of struggling to get a strategic investor.

A new co-working space has opened in the premises formerly occupied by the Hilton Hotel that closed down operations in December 2022, marking a major shift in the use of one of the city’s most iconic buildings.

Tulivu Co-Working Space has taken over the site on Mama Ngina Street, repurposing it into a modern workspace targeting entrepreneurs, small businesses and corporate teams seeking flexible office arrangements.

"Today marks a new chapter in the way Nairobi works. This outlet is a purpose-built environment that brings together functionality, design, and service to support the modern professional," said Tulivu co-working center manager Blessed Muthoni.

A report by Knight Frank, Nairobi's coworking market is diverse, with over 60 spaces now operating, primarily concentrated in areas like Westlands, Upperhill, the CBD and Karen.

Prime office occupancy has been on the rise climbing to 77.7 per cent in June, a five-percentage-point increase from 72.7 per cent recorded in January.

The surge signals a stronger demand for high-quality workspace, driven largely by coworking operators and business process outsourcing (BPO) firms.

The sector is becoming increasingly selective, with a clear focus on premium assets. Properties boasting strong environmental, social, and governance (ESG) credentials are considered best positioned for long-term success. Industry analysts conclude that quality, flexibility, and strategic positioning are now the defining factors for the resilient market.

The facility was inaugurated by Nairobi County’s Executive Committee Member for Business and Hustler Opportunities, Anastacia Nyalita.

Nairobi has in the recent past recorded a spike for shared and serviced offices amid changing work patterns and the rise of hybrid models.

In the first six months of the year, Prominent expansions in the space included 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.

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Teleperformance also opened a new centre at Two Rivers International Finance and Innovation Centre, expected to create up to 5,000 jobs.

Despite growth in top-grade spaces, older and less adaptable buildings are struggling to attract tenants, with landlords under pressure to retrofit properties or lower rents.

Knight Frank projects that developers will remain cautious about new office projects in 2025, focusing instead on quality refurbishments and sustainability upgrades.

Tulivu’s facility includes private offices, co-working desks, meeting rooms, a content studio, and a conference hall.