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Airbnbs squeeze Nairobi tenants too
In May, Airbnb unveiled a major redesign to make it easier for users to book such services—an expansion it hopes will earn more than a billion dollars (about Sh129 billion) in three to five years, according to chief executive Brian Chesky.
The mushrooming of short-term rentals such as Airbnbs in Nairobi’s estates is fast becoming more than a nuisance for residents.
Beyond the awkwardness of having different neighbours every few days, investors in short-term rentals are now competing with long-term tenants for limited units—just when many had begun to enjoy the relief of a “tenant’s market”.
A new report by global property consultancy Knight Frank estimates that the surge of short-term rentals in Nairobi’s mid- and high-end estates has fuelled a 10 percent rally in rents, making homes costlier at a time when households are grappling with shrinking disposable incomes.
The firm notes that roughly 15 percent of housing units in these neighbourhoods have shifted to Airbnb and other short-let platforms, piling pressure on prices for traditional renters.
“About 15 percent of Nairobi’s housing units have shifted to short-term rentals, driving a 10 percent rent increase over two years as residents are now competing with this new demand,” the report says.
Airbnb has already shaken up travel accommodation by letting homeowners rent out entire properties or spare rooms, and is emblematic of a broader sharing-economy wave that has also disrupted transport, finance, freelance work and food delivery by linking consumers directly.
The Silicon Valley company now wants to go beyond beds: in addition to finding a place to sleep, it aims to be a go-to platform for chef-cooked meals, spa treatments, hair appointments and personal training.
In May, Airbnb unveiled a major redesign to make it easier for users to book such services—an expansion it hopes will earn more than a billion dollars (about Sh129 billion) in three to five years, according to chief executive Brian Chesky.
Yet it is the hospitality industry—particularly mid-sized hotels—that is feeling the sharpest pinch.
A Central Bank of Kenya (CBK) survey of hotel executives last November found guests increasingly opting for cheaper Airbnb-style accommodation for conferences and leisure trips.
“Respondents cited that forward bookings are being hindered by weak consumer purchasing power, ongoing rains, year-end business slowdown, inflated costs at the hotel due to commissions charged on online bookings, and increased competition from Airbnbs,” CBK noted.
Taken together, the twin pressures—tenants jostling with short-term visitors for apartments, and hotels losing rate-sensitive guests to home-shares—signal a structural shift in Nairobi’s accommodation market.
