Airbnb is a global online marketplace that connects people
who need accommodation with those who have space to rent out. The company has
disrupted the traditional hospitality industry, offering travelers a unique and
affordable way to experience new destinations while also providing hosts with a
platform to monetize their unused or underutilized space. In Kenya, Airbnb has
gained traction in recent years, especially in popular tourist destinations
such as Nairobi, Mombasa, and the Maasai Mara.
Overview
of Airbnb in Kenya
Airbnb
launched in Kenya in 2015, and since then, the platform has grown rapidly, with
more than 4,000 listings available across the country. The majority of these
listings are located in Nairobi, followed by Mombasa and the Maasai Mara. The
platform has become popular among both local and international travelers,
offering a wide range of accommodation options, from budget-friendly apartments
to luxury villas.
One
of the reasons Airbnb has gained popularity in Kenya is its affordability. Many
travelers are looking for cost-effective ways to explore the country, and
Airbnb provides a cheaper alternative to traditional hotels. Additionally,
Airbnb allows travelers to immerse themselves in the local culture by staying
with local hosts, who can provide insider tips and recommendations on what to
see and do in the area.
Another
factor driving the growth of Airbnb in Kenya is the country's thriving tourism
industry. According to the Kenya Tourism Board, the country welcomed 2.05
million tourists in 2019, generating Ksh. 163.6 billion in revenue. With the
COVID-19 pandemic causing a significant drop in tourism numbers in 2020, Airbnb
could play a role in helping the industry recover by providing a safe and
affordable option for travelers.
Regulations
and Challenges
Despite
its popularity, Airbnb in Kenya has faced several challenges related to
regulation and taxation. In 2017, the Kenyan government introduced a new
tourism law that required all short-term rental platforms, including Airbnb, to
register with the Ministry of Tourism and pay a 1% levy on their earnings. The
law also required hosts to register with the government and pay a 10%
withholding tax on their earnings.
While
the law was intended to create a level playing field between traditional hotels
and short-term rental platforms, it faced criticism from some Airbnb hosts, who
argued that the taxes and fees were too high and would discourage people from
using the platform. Others argued that the regulations were too restrictive,
with some local authorities requiring hosts to obtain permits and adhere to
specific zoning laws.
Despite
these challenges, Airbnb has continued to grow in Kenya, with some hosts
finding creative ways to work around the regulations. For example, some hosts
have registered their properties as bed and breakfasts or guesthouses to avoid
paying the higher taxes and fees associated with short-term rentals.
Impact
on the Kenyan Economy
While
Airbnb has faced challenges in Kenya, the platform has had a positive impact on
the country's economy, particularly in terms of job creation and income
generation. According to a study conducted by Airbnb in partnership with the
African Technology Foundation, Airbnb hosts in Kenya earned more than Ksh. 1.4
billion in 2018, with the average host earning Ksh. 70,000 per year.
Additionally,
Airbnb has created opportunities for entrepreneurs and small business owners,
such as local tour operators and transportation providers. By staying in Airbnb
accommodations, travelers are more likely to use local services, generating
additional income for these businesses and helping to support the local
economy.
Airbnb
has also had a positive impact on tourism in Kenya, providing travelers with a
unique and authentic way to experience the country. By staying with local
hosts, travelers are more likely to engage with the local community, learn
about the culture and traditions of the area, and explore off-the-beaten-path
destinations. This type of tourism can help to promote sustainable and
