Airbnb regulation in Kenya is needed now more than ever with the rise of the sharing economy where Airbnb is becoming a prominent player in the hospitality sector.
In Kenya, as elsewhere, hosts venturing into the Airbnb business need to navigate the regulatory landscape to ensure compliance with local laws.
This blog post will guide potential hosts through the essential steps of registering and licensing their Airbnb business in Kenya.
Understanding Local Regulations
Before diving into the Airbnb business in Kenya, hosts should familiarize themselves with the legal requirements governing short-term rentals. In 2021, the Tourism Regulatory Authority (TRA) enacted new regulations on the registration and licensing of Airbnb facilities in Kenya.
Read Also: Understanding the Airbnb Landscape in Kenya
The regulatory stated that the new regulations were prompted by the dynamic and emerging traveler 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.
Types of premises that can be listed on 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 not limited to serviced apartments:
- Villas
- Homestays
- Condominiums
- Treehouses
- Floatels
- Bandas
- Beach cottages
- Holiday cottages
- Tented camps
- Timeshares
Business Registration and Licensing
One of the initial steps in establishing an Airbnb business in Kenya is registering it as a business entity. Hosts can choose to register as sole proprietors, partnerships, or limited liability companies, depending on their preferences and business goals. This step ensures legal recognition and compliance with tax obligations.
An 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.
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 licensed by the Tourism Regulatory Authority (TRA)
Documents Required For Airbnb Regulation
For members to be successfully registered by the TRA and be issued a regulatory license, they are required to make a one-off application fee of Ksh. 1,000/= and an annual license fee for each unit owned together with the following documents:
- A duly filled application form;
- The original deposit slip/advice for the application & license fee (proof of payment);
- Tariff/rack rates
- A copy of Title Deed/Lease Agreement for the premises
- Copies of ID’s/ 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 license fee to be paid varies with the type of Airbnb:
- Serviced flats & apartments, villas, holiday cottages, and timeshares are charged a license fee of Ksh. 26,000/= per year.
- Beach cottages and treehouses are charged Ksh. 21,000/= per year
- Hostels and guest houses are charged Ksh. 11,000/= per year and homestays are charged between ksh1,000/= to ksh3,000/= per year depending on their location.
TRA Standards and Compliance
Before issuance of the license, the TRA will dispatch an officer to inspect the premises. They will confirm if your Airbnb has complied with the standards and requirements. The requirements are listed in the First Schedule of the Tourism Regulatory Authority Regulations, 2014.
Please click here to get more information on the standards and requirements one is required to comply with. You can also click on the link below.
https://eregulations.invest.go.ke/media/Tourism%20Act%20Authority%20Regulations%202014.pdf
Other licenses to be procured
NEMA License
Section 98(5)(c) of the Tourism Act, imposes an obligation on a host/owner of an Airbnb to procure an environmental impact assessment license (NEMA license) over the premise.
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.
Penalties & Offences
An application for renewal of the TRA license must be made within 3 months before expiry. Failure to make the application for renewal, the host will be liable to pay a penalty of 10% of the license fee for each month they are in default; and
Refusal to apply for a license or furnish the license upon request amounts to an offense under the Tourism Act, 2011, and exposes the host to a fine of Kshs.100000/= or a jail term of up to 18 months or both; and
Failure to comply with the standards and requirements set by the TRA will lead to the suspension of your license and the closure of your Airbnb business.
Safety and Compliance Standards
Recently there have been arising issues linked to Airbnb units in Kenya where serious offences like murders have occurred.
As a result, the government is enforcing the necessary regulations to ensure both host and guest safety. Hosts must adhere to safety and compliance standards set by the government.
Guests must provide their identification documents during check-ins for easier identification in case of any incidences. Other regulations for the houses include;
- Fire safety codes
- Providing emergency contact information to guests
- Maintaining a secure environment for visitors
Guest Registration and Reporting
The government now requires hosts to register their guests during check-in as a way of complying with local authorities for security purposes. Hosts should be aware of any reporting obligations and ensure they comply with these requirements to avoid legal issues.
Conclusion
Farmilializing with the Airbnb registration and licensing process in Kenya is a crucial step toward building a successful and compliant venture.
By understanding local regulations, completing the necessary registrations, and ensuring compliance with safety standards and tax obligations, hosts can create a secure and enjoyable experience for guests while operating within the bounds of the law.
It’s always recommended to seek professional advice and consult with local authorities to stay updated on any changes in regulations.
