Hoteliers welcome new levy on Airbnb

There are over 40,000 Airbnb host facilities in Kenya. [iStockphoto]

Stakeholders in the hospitality sector have commended the Tourism Fund (TF) for imposing a two per cent levy on all operator hosts of the popular Airbnb service.

Kenya Association of Hotelkeepers and Caterers (KAHC) said the move was sustainable for the fund.

"A lot of business has moved to alternative accommodation, and this requirement for registration will help the sector be regulated," said KAHC Coast branch Executive Officer Sam Ikwaye.

He said the mainstream industry, especially hotels, had challenges and will review rates upwards after the expiry of current contractual agreements, adding that the cost of doing business has shot up.

"Airbnb, like other platform solutions, including Uber, have the potential to transform any sector and is welcome," Ikwaye said.

"However, their contentious growth should be supported with adequate regulations and legislation, otherwise, they develop into monsters that destroy other sectors and livelihoods."

TF and other regulatory agencies launched a new registration drive for homestays to bring them into the tax bracket.

Low registration

There are over 40,000 Airbnb host facilities in the country, but only 400 have been registered, official data shows.

Due to non-registration, the government has been losing lots of revenue.

TF Board chairman Samsom Some and Acting Chief Executive David Mwangi said they had held discussions with the Airbnb Africa office to have all operators on the platform sensitised and registered.

"We are asking all hosts on the Airbnb platform to conform with the regulations in place and ensure that they register and remit the two per cent levy," Mwangi said.

Airbnb is becoming popular across the country, with real estate developers and homeowners keen to tap into the growing demand for decent and affordable accommodation.