Key Global Platform Updates
- Airbnb, Booking.com, and VRBO continue to dominate global STRs, with Airbnb reporting that global restrictions such as night caps have a minimal impact on shifting STRs to long-term rentals, mostly because these properties often aren’t suitable for long-term lets by their owners.
- US Market Trends: In Q2 2025, short-term rentals outperformed hotels in all US regions, achieving a 9-point RevPAR advantage according to Key Data. Booking windows have shortened while operational agility and dynamic pricing are now the main drivers of success.
- Tech and Investment: Oman’s OMRAN Group invested $7M in UnderTheDoormat, a tech-focused vacation rental operator, as part of an expanding global strategy to leverage STRs for national tourism growth.
Kenya & East Africa Market and Legislation Update - Regulatory Crackdown in Kenya: Kenya’s Tourism Regulatory Authority (TRA) has registered 8,000 Airbnbs as of September 2025, intensifying crackdowns on unregistered operators to ensure safety and compliance. TRA is working closely with platforms to maintain an up-to-date database and streamline licensing through its website.
- Licensing and Taxation: Under the Kenyan Tourism Act, STR operators must obtain TRA licenses and comply with health, safety, and taxation standards. Commercial STR income is taxed at 10-30%, with VAT registration mandatory above certain turnover thresholds. An additional 2% gross receipts levy to Kenya Tourism Board is required for licensees.
- Compliance Challenges: There remains a lack of a unified legal framework for STRs in Kenya, especially around definitions and classification of different STR formats (like homestays vs. serviced flats). Compliance rates for tax and licensing are still low, placing much of the sector within the informal economy.
- Short-Stay Competition: STRs are increasingly eating into mid-tier hotel revenues in Kenya, driving many hotels to innovate or shift their business models.
Market Performance and Local Trends
- Popular Locations & Demand: Nairobi’s suburbs (like Kilimani, Westlands, Kileleshwa), coastal towns (Diani, Watamu, Malindi), and destinations such as Naivasha and Nanyuki remain STR hotspots. Tourism, business travel, and local events fuel demand.
- Guest Experience & Amenities: Hosts are investing more into reliable WiFi, modern furnishings, and safety amenities as guest expectations rise. Listing platforms now require minimum standards in health, security, and digital presentation.
- Tech Integration: While platform news on Guesty and TRUVI from this week is limited, broader reports show increasing use of integrated technology for automation, pricing, and guest management across the region.