• Airbnb operators to pay Sh26,000 licensing fees for each unit owned and pay for many other requirements, including a business license, Nema license and home insurance. And taxes.
• Countrywide Inspections to begin this month. Violators will be prosecuted.
Image: PIXABAY
If you own a homestay, expect a visit this month by inspectors to ensure the premises are safe and properly registered and licensed.
Operators of Airbnb and other homestays countrywide must start paying the Kenyan government.
The Tourism Regulatory Authority has started a crackdown to enforce payment of levies by Airbnb operators and homestays in Kenya - an untapped source of revenue.
All operators are required to pay Sh1,ooo registration fees, Sh26,000 per unit owned annually, (except this year). They must buy a single business permit, have a Nema license and home insurance.
They will also pay a one per cent digital service tax, a two per cent catering levy, 16 per cent VAT and 30 per cent corporate tax to operate as a limited company.
In a letter dated March 1, the Tourism Regulatory Authority notified operations in Central region it will begin to inspect all units starting this month to ensure they are registered and licensed.
The regulator said those found operating outside the rules will be prosecuted and if convicted, required to pay all accrued fees for the period of operation.
"Furnished apartments and private villas are among the licensable accommodation facilities that offer regulated hospitality services," TRA Central region manager Moses Karanja wrote.
They are listed in the 4th Schedule of the TRA Regulations 2014 and are required to be registered, inspected, and licensed by TRA before the commencement of operation."
Karanja said for members to be registered by TRA and issued with the regulatory license, they are required to meet minimum requirements for licensing of activities and services.
Airbnb and other operators of homestays are required to pay a one-off application fee of Sh1,000 and an annual license fee of Sh26,000 per unit.
The operators also need to have home insurance and avail copies of a filled-in application form; an original deposit slip for application and license fees; tariff/rack rates and a copy of the title deed/lease agreement for the premises.
Operators in the Central region block had been given a March 31 deadline to register their units with TRA.
The regulator said arrears and and penalties would be waived for those who complied within the registration window.
From next year, each operator will be required to pay the Sh26,000 initial license fee for each unit.
This year, due to the financial strain caused by the Covid-19 pandemic containment measures, TRA has allowed operators to pay single license fees despite the number of units.
(Edited by V. Graham)