Airbnb fees in Nairobi reach Sh5,600 for one night

The average daily cost of renting homes in Nairobi through the Airbnb short-term home rental platform has increased by 22.5% over the past 11 months to $49 (Sh5,652).

Daily charges rose from $40 (4,592 shillings) in May last year, according to data from vacation rental research firm AirDNA.

Charges represent the average cost of reservations per night plus cleaning fees.

The rise signals an increase in travel and spending by Kenyans and foreigners amid a global economic recovery and a reduction in Covid-19 restrictions that impeded travel.

Most of the properties listed on Airbnb are located in middle-class neighborhoods, including Kileleshwa, Westlands, Lavington, Kilimani, Yaya, and Valley Arcade.

Competition for customers is expected to increase in the coming years as more investors enter the industry.

Airbnb is popular among travelers looking for affordable accommodations, a convenient location, and household amenities.

Properties offer a cheaper alternative to hotels, hitting them hard in a more competitive landscape.

Most hotels in the city have a daily rate of over 8,000 shillings and the rate can be as high as 30,000 shillings depending on room type and property rating, with five-star properties being the most expensive.

Hotels do, however, offer more services, including breakfast and airport transfer which may be included in the rates.

Airbnb’s occupancy rate in Nairobi rose from 25% in October to 35% in December last year as more people celebrated the festive season away from home.

The use of short-term rental properties amounts to 29%.

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