The average daily cost of leasing Nairobi homes through short-term house rental platform Airbnb has increased 22.5 percent in the past 11 months to $49 (Sh5,652).
The daily charges rose from $40 (Sh4,592) in May last year, according to data from vacation rental research firm AirDNA.
The charges represent the average cost of nightly bookings plus cleaning fees.
The rise signals increased travel and spending by Kenyans and foreigners amid global economic recovery and reduced Covid-19 restrictions that prevented movement.
Most of the properties listed on Airbnb are located in middle class locations, including Kileleshwa, Westlands, Lavington, Kilimani, Yaya and Valley Arcade.
Competition for guests is expected to rise in the coming years as more investors get into the sector.
Airbnb is popular among travellers seeking affordable accommodation, convenient location and household amenities.
The 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 more than Sh8,000 and the charge can reach Sh30,000 depending on the type of room and the rating of the property, with five-star establishments the most expensive.
Hotels, however, offer more services, including breakfast and airport transfer which may be included in the rates.
Nairobi’s Airbnb occupancy rate rose from 25 percent in October to 35 percent December last year as more people celebrated the festive season away from their homes.
Uptake of the short-term rental properties stands at 29 percent.