Private villas, cottages, homestays, and apartments that offer holiday stay will be regulated as the Government seeks to widen its tax net.
The Tourism Fund (TF) said the facilities would be monitored in the move that also aims to ensure fair play in the hospitality industry.
Joseph Cherutoi, the CEO, said they planned meetings to sensitise the new targeted tax sources.
"We want those operating accommodation facilities to abide by the laws regulating the hospitality sector," said Mr Cherutoi.
The TF claims some of the luxury villas in Malindi and Watamu in Kilifi County have not been registered and are therefore denying the Government millions of shillings in revenue.
The move has been welcomed by hoteliers who say private renters have been subjecting them to unfair competition.
Officials and inspectors from TF will also tour Mombasa, Kwale, Taita Taveta, Naivasha, Nanyuki, Nakuru and Nyeri to sensitise stakeholders.