Hosting a Short Stay in Nairobi: Licence and Tax

Do I need a licence to host in Nairobi?

Expect to register, yes. Business Daily reported on 23 January 2024 that operators of short-term rentals must register with the Tourism Regulatory Authority, with Nairobi operators first and the rest of the country to follow, and an extended compliance period for operators already trading. Applicants were asked for documents including a lease in which the landlord expressly agrees to a short-term rental business, and the unit and its amenities had to be inspected for safety before a licence was issued. The same report said serviced apartments, defined as studios to three-bedroom units, pay KES 26,000 a year for a licence plus KES 1,000 for registration, regardless of the number of units.

A lawyer quoted in the report said it is hard to find a definition of "short-term rental" in Kenyan legislation, and it described a new draft law still to go to public consultation. Because these facts come from a 2024 news report, check the TRA's current requirements and fees before you apply, and treat this page as general information as of November 2026, not legal advice. Compare the Ugandan route in Hosting Rules and Licensing in Uganda: Step by Step.

Is there a county permit or building rule to check?

Probably, but we have not found a single published Nairobi City County checklist for short-stay units, so we do not list one. Business Daily noted that counties such as Kisumu told operators to register short-term rentals by the end of January 2024, and that other counties were also enforcing registration. Ask Nairobi City County in writing which business permit, fire or building approval applies to a furnished apartment let by the night, and ask your building's management company or residents' association whether the lease and house rules allow it.

If you rent the unit, the landlord's written consent is not optional: the TRA asked for a lease that expressly allows short-term letting. If you own it, check the title and any sectional title or management rules. See the Nairobi estates in Houses and Apartments for Rent in Nairobi by Estate.

How is short-stay income taxed in Kenya?

Two layers apply. First, the TRA registration reported above carries a 2 percent remittance: Business Daily reported that licensed hosts must remit 2 percent of gross monthly receipts from accommodation and related services to the TRA, and that hosts with annual turnover above KES 5 million must register for and charge VAT. Second, the KRA taxes the income.

KRA's 2026/27 overview of Monthly Rental Income (MRI) tax says residents earning residential rental income above KES 288,000 and up to KES 15 million a year pay 7.5 percent of the gross rent as a final tax. No expenses can be deducted, an affordable housing levy of 1.5 percent of gross rental income also applies, and the return and payment are due on or before the 20th of the following month. Late filing carries a penalty, KES 2,000 or 5 percent of the tax due, whichever is higher, for individuals. MRI is for residential rent. Whether income from nightly lets falls under MRI or under ordinary business income tax is a question to put to the KRA or a tax adviser, because Business Daily says commercial income from property is taxed at 10 to 30 percent for individuals. Do not assume. Our summary of the rental regime is in Landlord Tax in Kenya: Monthly Rental Income (MRI), and we do not restate every rate here.

What if I own the flat but live abroad?

Rules for non-residents changed. KRA's overview says that from 1 July 2026, rental income earned by a non-resident from property in Kenya is subject to Non-Resident Rental Income Tax under section 6B of the Income Tax Act at 30 percent of the gross rent, a final tax, except where the rent is received through an agent that the Commissioner has appointed to withhold and remit the tax. KRA says non-residents are not eligible for MRI, and that the section covers residential and commercial property. Diaspora Kenyans should confirm their residence status for tax with KRA before they list.

How do payouts work for Kenyan hosts?

The model is the same as in Uganda. The guest pays Land & Property at booking, and the price is locked in the guest's currency, which for Kenyan listings is Kenya shillings. Our default commission is 15 percent, set per host, and the payment processing fee is charged to the guest as a separate line. We pay you 72 business hours after the check-in time, skipping weekends and Kenyan public holidays, by transfer to a mobile money or bank account in your verified name. You see "You earn KES X" before you publish.

Our host fines and guarantees are also stated in shillings: a minimum fine of KES 2,000 for a host cancellation 7 to 29 days before check-in, and a rebooking guarantee of up to KES 20,000 to the guest. Which payout channel and payout currency we offer a particular Kenyan host is confirmed at onboarding, and we do not promise a channel here. Read the full mechanics in Host Payouts and Commission on Land & Property.

Where is demand, and how do I start?

Start with the estate guests ask for. Our area pages cover Apartments for Rent in Kilimani, Nairobi and Apartments for Rent in Westlands, Nairobi, and the guest-side view is in Short Stay in Nairobi: Kilimani and Westlands. We do not quote Nairobi nightly rates, because we have not sourced a market report for them.

1. Get the landlord's or owner's written consent for short-term letting.
2. Register with the TRA and pass the safety inspection.
3. Register your property and income with the KRA through iTax.
4. Check county permits and building rules.
5. Sign up and add your property, photos, nightly price in shillings and your licence number. Our host guide lists the steps.

Land & Property wants proof of identity, the property and your licence, and a new host has 30 days to register before the listing is paused. Start by creating your account to list your short stay in Nairobi.

Frequently asked questions

Related guides

• Short Stay in Nairobi: Kilimani and Westlands
• List Your Short Stay in Kampala, Entebbe, Jinja or Nairobi
• Host Payouts and Commission on Land & Property
• Landlord Tax in Kenya: Monthly Rental Income (MRI)
• Apartments for Rent in Kilimani, Nairobi
• Apartments for Rent in Westlands, Nairobi