The Airbnb business in Kenya has grown significantly in recent years, fueled by increased domestic and international travel, urbanization, and the demand for affordable and flexible accommodation options. 

Whether you’re a property owner looking to maximize your rental income or an investor seeking a profitable venture, Airbnb offers a lucrative opportunity in Kenya’s real estate market.

Why Airbnb Is Booming Business in Kenya

Four key factors are behind the boom in Airbnb business in the country namely:

Increasing Demand for Short-Term Rentals

Kenya attracts tourists, business travelers, and expatriates who often prefer the flexibility of Airbnb over traditional hotels. 

Properties in cities like Nairobi and Mombasa, as well as in tourist hubs like Naivasha and Diani, experience high demand.

Flexible Property Use

Airbnb allows property owners to maximize their space. Whether it’s an extra room, a standalone apartment, or a vacation home, you can rent it out when it’s not in use.

High Return on Investment

Short-term rentals often generate more income than traditional long-term leases, especially in popular locations. 

This makes Airbnb a lucrative option for property owners.

User-Friendly Platform

Airbnb’s platform simplifies the booking process for hosts and guests, providing tools for listing, marketing, and managing reservations.

These factors make the Airbnb business a viable and profitable venture for Kenyan entrepreneurs. 

Step-by-Step Guide to Starting an Airbnb Business in Kenya

Here’s a step-by-step guide to starting and succeeding in the Airbnb business in Kenya.

Research the Market

Before diving into the Airbnb business, understand the demand and competition in your target area.

Key questions to ask yourself during maekert research include:

Who is your target audience?

 Tourists, business travelers, or locals seeking staycations?

What’s the demand like in your area? 

Popular areas like Westlands, Karen, Kilimani, Diani, and Naivasha attract steady bookings.

What are your competitors offering? 

Analyze pricing, amenities, and customer reviews of other Airbnb listings nearby.

Pro Tip

Choose a location with high traffic from tourists or business travelers for better returns.

Prepare Your Property

Airbnb guests prioritize comfort, cleanliness, and convenience. 

Prepare in the following to ensure your property is attractive and functional to attract bookings:

Clean and Furnish

Invest in quality furniture, fresh linens, and essential appliances (microwave, refrigerator, etc.).

Add Amenities

Wi-Fi, parking, and security are highly valued by guests. Include extras like Netflix or a coffee maker to stand out.

Decorate Smartly

Use appealing decor and lighting to make your property photogenic. Simple yet stylish designs work best.

Safety Measures

Install fire extinguishers, smoke detectors, and first-aid kits for guest safety.

Pro Tip

Hire a professional photographer to take high-quality photos for your listing, as visuals play a crucial role in attracting bookings.

Register on Airbnb

Sign up on the Airbnb platform and create a detailed listing for your property. 

Airbnb regsitration involves:

Creating an Account

Use your email or social media account to sign up.

Listing Your Property

Add a title and description highlighting your property’s unique features.

Upload high-quality photos.

Specify the location, amenities, and house rules.

Setting Pricing

Base your pricing on the size, location, and amenities of your property.

Research competitor pricing to remain competitive.

Pro Tip

Enable Smart Pricing on Airbnb, which adjusts your rates based on demand and availability in your area.

Set Competitive Rates

To attract guests, price your property competitively while ensuring profitability.

Important tips for pricing your Airbnb offering include:

Seasonal Pricing

Charge higher rates during peak seasons like December holidays and safari tourism months.

Weekly/Monthly Discounts

Offer discounts for extended stays to encourage longer bookings.

Dynamic Pricing Tools

Use tools like AirDNA or Wheelhouse to analyze local market trends and set optimal rates.

Market Your Airbnb Listing

Visibility is key to securing bookings. 

While Airbnb’s platform provides exposure, additional marketing efforts can help maximize bookings.

Viable Airbnb marketing strategies include:

Social Media

Use platforms like Instagram and Facebook to showcase your property. Engage with travel groups or forums.

Google My Business

List your property on Google for local searches.

Collaborate with Travel Agencies

Partner with travel agents to refer clients to your Airbnb.

Pro Tip:

Encourage guests to leave reviews after their stay, as positive reviews boost your listing’s ranking.

Provide Excellent Customer Service

Happy guests are more likely to leave positive reviews, leading to higher rankings and more bookings.

Three key ways of ensuring an exceptional customer experience include:

Ensure Fast Communication

Respond promptly to inquiries and bookings.

Personal Touch

Welcome guests with a small gift like snacks or a local guidebook.

Be Available

Ensure you or a property manager is reachable during the guest’s stay to address any issues.

Manage Your Airbnb

Managing an Airbnb involves maintaining your property, handling bookings, and dealing with guests.

Tools and ways to manage your Airbnb include:

Airbnb App

Manage bookings, communicate with guests, and track earnings on the go.

Cleaning Services

Hire reliable cleaners to maintain the property between stays.

Property Management Companies

If you have multiple properties or a busy schedule, hire a manager to oversee operations.

Challenges of Running an Airbnb Business in Kenya

Notabe challenges to managing an Airbnb business include:

Seasonal Demand

Bookings may drop during off-peak seasons, affecting revenue.

Solution: Offer discounts during low seasons to attract local travelers.

Regulatory Compliance

Some areas may have zoning laws or tax requirements for short-term rentals.

Solution: Consult with local authorities to ensure compliance.

Competition

High competition in popular areas like Kilimani and Westlands can make it difficult to stand out.

Tip:  Focus on unique features and exceptional service.

Estimated Costs and Returns

Startup costs you incur when starting an Airbnb business include:

Furnishing and Decorating:

Ksh 50,000 – 200,000 , depending on the size and condition of the property.

Listing and Marketing

Minimal costs as Airbnb is free to join.

Cleaning and Maintenance

Ksh 5,000 – 10,000 monthly.

Expected earnings from an Airbnb business

• Small apartments in Nairobi can earn Ksh 2,500–6,000 per night.
• Vacation homes in Naivasha or Diani can charge Ksh 10,000–30,000 per night during peak seasons.
• A well-managed property can generate Ksh 60,000–200,000 monthly, depending on occupancy and pricing.

Take Away on Starting an Airbnb Business

Starting an Airbnb business in Kenya is a rewarding venture for property owners and investors alike. 

By focusing on strategic locations, offering exceptional service, and marketing effectively, you can generate substantial income from short-term rentals.

 Although challenges like competition and seasonal demand exist, proper planning and management can help overcome them.

With Kenya’s growing tourism and travel sectors, the Airbnb business is poised for even greater growth.

Take the first step today by researching your market and preparing your property, and you’ll be well on your way to a successful venture.