The government has initiated the registration of all Airbnbs in the country with the aim of bringing them within the tax framework.
According to estimates from the Tourism Fund, Kenya is home to approximately 40,000 Airbnb hosts, but only 400 of them are currently registered.
The impact of Airbnb accommodations on established hotels in the country became more pronounced last year, with hotel bed occupancy rates decreasing by 50 percent as visitors sought more budget-friendly options.
Many of these Airbnb properties have operated without proper registration with regulatory agencies like the Tourism Regulatory Authority and various county licensing organizations, making it challenging to monitor and formalize their status.
This situation has also led to a loss of potential revenue for the country, as more Kenyans opt for luxurious Airbnb accommodations over traditional hotels.
David Mwangi, the CEO of the Tourism Fund, revealed that discussions are underway with Airbnb’s Africa office to sensitize and register all hosts on the platform. He emphasized that hosts offering accommodations are legally obligated to register and remit the 2 percent levy.
Mwangi added that the State agency recently conducted a training workshop for 120 hosts in Nakuru County to ensure that all property owners understand their compliance obligations.
Samson Some, the Chairperson of the State agency board, acknowledged the evolving nature of the tourism industry, particularly with the rise of online businesses like Airbnb. The agency is actively engaging with counties to establish effective registration procedures.
Airbnb accommodations are gaining popularity in counties, driven by real estate developers and homeowners who are creating a variety of gate-away homes in regions like the North Rift. Prices for these accommodations can range from as low as Sh2,500 to as high as Sh15,000 per night.
