With Kenya’s tourism and business sectors booming, Airbnb hosting has emerged as a profitable opportunity for property owners in cities like Nairobi, Mombasa, Kisumu, and Naivasha.
But before you open your doors to guests, it’s essential to understand the legal and regulatory requirements involved in running an Airbnb in Kenya.
Here’s a detailed guide on how to navigate permits, licenses, and compliance as an Airbnb host in Kenya.
Understanding the Legal Framework
Running an Airbnb in Kenya is considered a business activity, and like any other business, it must operate within the legal boundaries defined by national and county governments. This includes obtaining proper licensing, adhering to building regulations, and ensuring taxation compliance.
Registering Your Business
To operate legally, it’s advisable to register your Airbnb as a business. You can do this as a sole proprietorship, partnership, or limited company, depending on the scale of your operation.
You must register your business name on the eCitizen portal through the Business Registration Service. Once successful, you’ll receive a Certificate of Registration from the Registrar of Companies.
Applying for a Single Business Permit
After business registration, you need to apply for a Single Business Permit from your respective County Government. This permit gives you the authority to operate a commercial venture such as a short-term rental.
You can apply at your county offices or through the county’s online portal. The fees vary depending on your location and property size, and the permit is renewable annually.
Compliance with Building and Zoning Laws
Not every building or estate allows short-term rentals. Many apartments, especially in residential suburbs like Kileleshwa, Lavington, and Westlands, have management rules that restrict Airbnb operations.
Before you list your unit, ensure you have approval from the building management or resident association. Also, your unit must meet health and safety requirements and be located in a properly zoned area.
Tax Compliance with KRA
Airbnb income in Kenya is taxable. The Kenya Revenue Authority requires you to declare and remit tax on earnings received from short-term rental operations.
You must register for a KRA PIN, declare your income, and file returns either monthly or annually depending on your business structure. If your turnover is high, you may also be required to register for VAT. Consulting a tax advisor can help you avoid penalties and stay compliant.
Hospitality Industry Considerations
Though Airbnb operates outside the formal hotel industry, hosting guests still requires you to meet minimum standards in hospitality and safety.
If you manage multiple units or offer hotel-like services, you may need approval from the Tourism Regulatory Authority. You should also keep a guest logbook, provide basic safety items, and ensure proper cleanliness and hygiene.
Insurance for Short-Term Rentals
Regular homeowner’s insurance may not cover damages or liabilities resulting from short-term rentals. Hosts should consider getting insurance that covers guest-related damages, liability claims, and property loss during bookings.
Becoming an Airbnb host in Kenya, especially in high-demand cities like Nairobi or Mombasa, offers excellent income potential.
But success starts with doing things right. Ensuring you have all the necessary permits, licenses, and insurance will protect your investment and allow your hosting business to grow legally and sustainably.
By staying compliant and professional, you’ll build trust with guests and create a business that thrives in Kenya’s fast-growing short-term rental market.
