The Kenyan government is to bring short-term rental platforms, including Airbnb and Jumia, into the country’s formal tax net by the end of June 2026.
Under a major regulatory shift announced this week, all short-term rental (STR) operators will be required to register with the Tourism Regulatory Authority.
The move is designed to modernise oversight of a fast-growing “short-stay” economy that officials say has outpaced existing laws.
The central pillar of the policy is the expansion of the 2% tourism levy. While this is not a new tax,having been mandated under the Tourism Act of 2011 for licensed hotels and restaurants, it will now explicitly target digital marketplaces like Booking.com and Jumia.
Industry analysts suggest the change follows years of “silent lobbying” by traditional hoteliers. Established players have long argued that digital platforms enjoy an unfair advantage by operating outside the fiscal responsibilities faced by brick-and-mortar businesses.
The economic stakes are significant. For the financial year ended June 2025, the Tourism Fund reported collecting KES 5.1 billion. By tapping into the previously unregulated STR market, the government anticipates a “considerable increase” in that figure.
To enforce these new regulations, the government has established a dual-compliance system that mandates all hosts register with the Tourism Regulatory Authority while simultaneously introducing a “taxing at source” mechanism.
This model requires digital platforms to integrate the 2% tourism levy directly into their payment systems, ensuring the fee is automatically deducted from bookings and remitted to the state to close existing enforcement gaps.
However, the transition may not be seamless for consumers. As platforms adjust their technical infrastructure, the 2% charge is likely to be passed on to guests at checkout, potentially raising costs for budget-conscious travellers.
For hosts, the era of a “largely tax-free operating environment” is effectively over. Despite the increased costs, the government maintains that the move will improve service standards and consumer protection, ensuring that listed properties meet basic quality requirements.