State to crack down on unlisted short-stay rentals

Operators of short-term rental properties will be required to register with the Tourism Regulatory Authority (TRA) effective immediately in what the government says is a response to a series of murders in the residences.

The joint statement from the Interior, Gender, Education and Tourism ministries said the mandatory registration is on the back of the murder incidents in short-term rentals.

“Effective immediately, all operators of short-term accommodation rentals, including Airbnb, are required to register with the Tourism Regulatory Authority. This registration process is designed to ensure that all accommodations meet the highest standards of safety and security for guests,” read the joint statement.

Read: Investing in Airbnb: What you need to know

The statement added that the Private Security Regulatory Authority has implemented strict safety protocols to enhance security and accountability within these premises.

“Starting from February 5, 2024, National Government Administrative Officers (NGAOs), in collaboration with the TRA, will commence stringent inspections of all registered properties,” read the statement further.

“We will subsequently coordinate with booking platforms to restrict unregistered rentals and further institute severe penalties, including fines and revocation in cases of non-compliance.”

The Ministry of Tourism and Wildlife had late last year put Airbnb operators on notice saying that out of 40,000 listed homes, only 400 had registered with the Tourism Fund.

The Tourism Fund and other regulatory agencies launched a new registration drive of homestays in Kenya last October to bring them under the tax bracket.

This also means Kenya loses a source of revenue as more Kenyans opt for luxurious short-term rentals than traditional hotels for accommodation.

The move to have the short-term rentals registered will put them on the taxman’s radar even as the government seeks to collect two per cent towards the Tourism Levy.

The task force noted that the new safety measures would see guests register with the guards who record their identification card details, and entry and exit times.

“Security guards are now legally mandated to record the identification details of all individuals entering these premises, documenting their time of entry and exit, and temporarily retaining all visitors’ identification documents,” reads the statement in part.

Homeowners are also required to install closed-circuit television surveillance systems and ensure that the recordings are up to date.

The ministries have also urged the resident associations to help enforce the new rules through sharing information, joint inspections, and coordinated responses to any safety standard violations.

“We urge all stakeholders in the short-term rental sector to adhere to these regulations, recognising their legal and moral responsibility in ensuring a safe environment for all individuals regardless of gender.”

The statements come at a time when safety concerns have risen over visitors ending up dead.

“We also call for increased public awareness and action to address the global issue of violence against women. It’s crucial that stakeholders at all levels –Government, community, individuals and international actors–collaborate to create a safer environment for women and hold perpetrators accountable,” read the statement in part.

Read: KRA in fresh push to net Airbnb hosts evading taxes

The Kenya Revenue Authority (KRA) had written to Airbnb, the online marketplace for short and long-term homestays, to request transaction data covering the period January 1, 2021, to December 31, 2022, as it narrows down on tax evaders.

KRA expects to use information obtained from the exchange of information requests to make tax assessments and potentially issue respective tax demands on Airbnb operators and their guests.

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