Healthcare, automotive, leisure and digital retail operators are becoming increasingly important occupiers of commercial real estate in Kenya, helping to support landlords as traditional shopping centres contend with weaker discretionary spending and wider economic pressures.
- •According to Knight Frank’s H2 2026 Kenya Market Update, the shift is being driven by developers moving away from an over-reliance on large regional malls and focusing more on community-based convenience formats.
- •Neighbourhood centres, petrol station complexes and redeveloped city-centre properties are attracting a broader range of businesses seeking to capture everyday spending closer to residential catchments.
- •Retailers are increasingly adopting omnichannel models that combine online ordering with traditional stores, click-and-collect services and home delivery.
Healthcare retail has emerged as one of the fastest-growing occupier categories. Pharmacies and outpatient providers are expanding their networks within shopping centres and residential neighbourhoods, where they can benefit from regular footfall and convenient access to households.
Goodlife Pharmacy surpassed 150 outlets nationally during the review period, while Equity Afya and Gertrude’s Children’s Hospital continued to expand their outpatient clinic networks. Online pharmacy platform MYDAWA also announced further investment to accelerate its omnichannel healthcare strategy, reflecting the growing convergence between digital ordering, physical outlets and fulfilment infrastructure.
Knight Frank notes that the expansion of healthcare operators is strengthening demand for neighbourhood retail space. Pharmacies and clinics are increasingly taking space alongside supermarkets and other essential-service businesses, providing landlords with occupiers that generate regular visits and are generally less exposed to fluctuations in discretionary spending.
Cars, and Leisure Activities
Automotive businesses are also absorbing more commercial space. Dealerships and service-centre operators are expanding their showroom and workshop footprints in response to rising vehicle ownership and growing demand for after-sales support.
These occupiers are particularly suited to roadside schemes, mixed-use developments and convenience centres with prominent locations, parking and sufficient space for showrooms and servicing facilities. Their continued expansion is broadening the range of businesses occupying retail property and creating leasing demand beyond traditional shopping malls.
Leisure and entertainment operators are similarly helping landlords fill the gap left by weaker demand for conventional large-format retail. Shopping centres are increasingly incorporating family entertainment, fitness, specialised dining and other experiential concepts to increase customer dwell times and maintain footfall.
“At Promenade Mall on Rhapta Road, the introduction of Smash & Play, a multi-activity family entertainment hub featuring bumper cars, mini-golf and virtual reality spaces, illustrates the growing importance of experience-led retail,” notes the Kinight Frank survey.
“Such concepts are particularly valuable to mid-sized developments, where weekend and holiday traffic can be supported by activities that encourage families and groups to spend more time on site.”
The expansion of these alternative occupiers coincides with a difficult first half of 2026, during which recurrent public demonstrations disrupted trading and constrained visits to some shopping centres. Rising prices and pressure on household incomes also reduced discretionary spending, prompting retailers and landlords to place greater emphasis on convenience, value and essential services.
Supermarket operators have responded by moving closer to residential communities and adjusting their store formats. QuickMart opened its 67th and 68th branches at Basic Elgon View in Eldoret and along Ngong Road, while Naivas launched its 114th store at Ruaka Mall. Jaza Supermarket added at least six neighbourhood outlets targeting middle- and lower-income households, and Uchumi reopened strategic locations at Lang’ata Hyper and Unicity Mall as part of its turnaround strategy.
Brands, and E-Commerce
International and regional brands continued to favour established Grade A centres. Nike opened at Sarit Centre, while Lovisa, Town Team, Aboosto and Big Knife opened at Junction Mall. Hippopick Mart also opened at Cedar Mall. These openings demonstrate that premium shopping centres continue to attract brands serving middle- and upper-income consumers, even as the wider market becomes more focused on affordability and convenience.
In Nairobi’s Central Business District, the departure of large anchor tenants such as Tuskys continues to reshape urban retail property. Simara Mall on Tom Mboya Street reopened as a high-density, stall-based retail hub following the redevelopment of the former anchor-led property.
The conversion reflects growing demand for modular and flexible units that can accommodate smaller traders and informal businesses. It also demonstrates how older properties are being repositioned to serve a more fragmented occupier market rather than relying on a single large retailer to generate traffic.
E-commerce is adding another layer to this transformation. Improving internet access, widespread mobile-money adoption and changing consumer preferences are supporting the growth of online shopping, but digital retail is not eliminating the need for physical outlets.
Retailers are increasingly adopting omnichannel models that combine online ordering with traditional stores, click-and-collect services and home delivery. Neighbourhood outlets are consequently serving several functions: they provide direct access to shoppers, act as collection points and support last-mile fulfilment. This is reinforcing the importance of location, particularly in densely populated residential areas where retailers can reach customers quickly and efficiently.