Since its inception in 2008, Airbnb has taken the global market by storm.
In 2018, a report by the Airbnb platform ranked Nairobi third, among the top cities in Africa with the highest number of listed Airbnb facilities.
Currently, Kenya ranks in the top ten most visited and trending tourist destinations in Africa.
In 2021, the Tourism Regulatory Authority (TRA) enacted new regulations on the registration and licensing of Airbnb facilities in Kenya.
The regulatory stated that the new regulations were prompted by the dynamic and emerging traveller trends that necessitated different concepts in the local and global spheres.
TRA is a state corporation established under section 4 of the Tourism Act No. 28 of 2011 with the mandate to regulate all tourism activities and services in Kenya.
This is achieved through registration, licensing, and quality assurance audits of all tourism activities and services provided countrywide.
Creating an Airbnb account is free and easy, just go to airbnb.com and click sign up, or download the service provider's mobile app and follow the instructions.
What is needed for bookings?
To book a room on Airbnb all you need is your full name, email address, phone number and payment information.
Which premises can be listed as an Airbnb in Kenya?
The facilities that can be listed in the Airbnb platform as provided in the Ninth Schedule of the Tourism Act, 2011 include but are limited to serviced (furnished) flats and apartments, villas, homestays, condominiums, tree houses, floatels, bandas, beach cottages, holiday cottages, tented camps, and timeshares.
What you need to know about registration & licencing of Airbnbs in Kenya:
1. Licencing
Section 7(1)(c) of the Tourism Act, 2011, and Part III of the Tourism Regulatory Authority, Regulations 2014 make it mandatory for persons carrying out tourism businesses and services to be licenced by the Tourism Regulatory Authority (TRA).
For members to be successfully registered by the TRA and be issued a regulatory licence, they are required to make a one-off application fee of Sh1,000/= and an annual licence fee for each unit owned (the rates are provided below) together with the following documents:
A duly filled application form; The original deposit slip/advise for the application & license fee (proof of payment); Tariff/rack rates; A copy of title deed/lease Agreement for the premises; Copies of ID/ passport if one is an individual and a Certificate of Incorporation if one is a Company; and a copy of the applicant’s PIN certificate.
The annual licence fee to be paid varies with the type of Airbnb: serviced flats & apartments, villas, holiday cottages, and timeshares are charged a licence fee of Sh26,000 per year; beach cottages, tree houses are charged Sh21,000 per year and hostels and guest houses are charged Sh11,000 per year and homestays are charged between Sh1,000 to Sh3,000 per year depending on its location.
2. Compliance with standards and requirements set by the TRA
Before issuance of the licence, the TRA will dispatch an officer to inspect the premises and confirm if Airbnb has complied with the standards and requirements listed in the First Schedule of the Tourism Regulatory Authority Regulations, 2014.
3. Other licences to be procured
Nema Licence Section 98(5)(c) of the Tourism Act, imposes an obligation on a host/owner of an Airbnb to procure an environmental impact assessment licence (Nema licence) over the premise.
Single Business PermitAn Airbnb is regarded as an income-generating business as such the host is required to obtain a business permit from the County Government allowing him/her to run the business.
Home Insurance
It’s important to obtain home insurance to insure the premises and all the belongings in it against life’s unexpected events such as damage, fire, theft, natural causes, or other losses.
The plan can further be extended to cover your Airbnb’s employees and occupiers against any liability arising from an accident or incident occurring on the premises.
4. Penalties and Offences
An application for renewal of the TRA licence must be made within three months before the expiry of the licence.
Failure to make the renewal application, the host will be liable to pay a penalty of 10 per cent of the licence fee for each month they are in default.
Also, failure to apply for a licence or furnish the licence upon request amounts to an offence under the Tourism Act, 2011, and exposes the host to a fine of Sh100,000 or a jail term of up to 18 months or both; and
If one fails to comply with the standards and requirements set by the TRA will lead to the suspension of your licence and the closure of your Airbnb business.
