Over the past decade or so, Airbnb investment in Nairobi has gradually transformed from a niche sector to a booming market with over 5,000 active listings. The airbnb boom in Nairobi is not by chance. The city boasts a strong business travel demand, a growing digital nomad community, and an undeniable status as East Africa’s regional economic hub. 

However, the airbnb market in Nairobi has shifted from one of growth and opportunity to one hinged on performance. With that in mind, the question now becomes: Is airbnb investment in Nairobi worth it? This article delves into the real metrics that will paint a clear picture of the airbnb market in Nairobi and help you make an informed decision. 

Airbnb Investment In Nairobi: Occupancy Rates

The airbnb business in Kenya primarily caters to short-term stays. This means, unlike long-term rentals, it is a highly seasonal investment. At certain points within a year, there are times when occupancy will either be high or low. As an investor, you must therefore be very keen on the occupancy rates of airbnbs in Nairobi. According to data by AirROI, the average occupancy rate of airbnbs in Nairobi ranges between 31% to 44%, with different property tiers performing as follows:

• Best-in-class properties (Top 10%): These kinds of airbnbs achieve at least 75% occupancy, indicating high desirability. In Nairobi, they are typically found in upscale areas such as Riverside, Westlands and Upperhill.
• Strong performing properties (Top 25%): These airbnbs maintain up to 54% or higher occupancy. In Nairobi, these airbnb units are in areas such as Kilimani.  
• Typical properties: These airbnbs have an occupancy rate around 29%. 
• Entry-level properties (Bottom 25%):  average 13% occupancy, potentially facing higher vacancy.

In addition to occupancy rates, investors must also be familiar with the seasonal demand shifts of an airbnb in Nairobi. July, August and December typically experience the highest demand and peak occupancy while March to May have the lowest. With this information in mind, airbnb owners can choose to employ strategies such as offering off-season discounts, implementing flexible pricing and adjusting minimum stay requirements. 

Airbnb Investment In Nairobi: Rental Income

The potential for high rental income is one of the key things that attracts a lot of investors to the airbnb business in Kenya. But, how much do investors really earn from this model? Let’s break it down.

According to Airbtics and AirDNA, the average airbnb in Nairobi rakes in between $4,000 and $7,000 annually. Prime neighbourhoods like Riverside, Kilimani, and Westlands, however, routinely do better than the market average. In Westlands, premium one-bedroom apartments can charge between KES 8,000 and KES 15,000 per night. With occupancy rates averaging around 60%, this can translate to an estimated gross monthly revenue of approximately KES 216,000.

A studio costing KES 6,000 a night in Kilimani with an occupancy rate of 45% can generate approximately KES 81,000 monthly gross revenue, while a furnished luxury apartment in Riverside with a nightly rate of KES 18,000 and an occupancy of 55% can fetch KES 288,000 monthly. However, these figures only represent the gross revenue and not the actual net profit an investor makes. Expenses such as maintenance, utilities and management fees still need to be accounted for.

Airbnb Investment In Nairobi: Supply

Airbnb investment in Nairobi continues to realize tremendous growth in supply with Business Daily reporting a 23% year-on-year increase in Airbnb listings as of 2024. The same publication also reports that the Airbnb boom is slowly seeping into the broader residential sector with 15% of residential units in Nairobi shifting towards the short-term rental model. This oversupply challenge means that Airbnb pricing and occupancy rates will subsequently be impacted. But, all is not lost. 

The unlimited supply of airbnbs in Nairobi presents a strong opportunity for investors to step out of the ordinary with their listings, because simply owning an airbnb in Nairobi is not enough. In 2026 and beyond, the investors who want to succeed in the competitive Airbnb market in Nairobi will have to implement the following strategies:

Professional Management: A shrewd investor will not handle everything on their own. It is the fastest way to be overwhelmed with your investment, which is supposed to be working for you not against. Having your Airbnb managed professionally is the ideal way to go. The management agency will be responsible for handling all the day-to-day tasks such as maintenance, operations and even rent collection. 

Quality Furnishings & Interiors: Part of what makes a memorable stay is an even more memorable room. Quality bedding, furniture and appliances are key to making sure your tenant experiences the ultimate comfort that they paid for. Having quality furnishings also minimizes the repair expenses that you would have otherwise had due to wear and tear. Investing in professional interior design services also goes a long way to ensure that you attract more tenants. A well-furnished and decorated room makes all the difference between a generic airbnb in Nairobi and one that stands out in a highly competitive market. 

Strategic Marketing & Positioning: In a sector as competitive as the airbnb business in Kenya, strategic visibility is crucial. It makes very little sense to have a good-looking unit that no one knows about. Invest in professional photography or videography services and list your unit on multiple short-stay rental platforms to attract potential tenants. You can even utilise popular social media video platforms such as Tiktok, Instagram and Youtube as marketing tools to help increase your reach.

Exceptional Service Provision: Guest experience can make or break the success of your airbnb investment in Nairobi. Your airbnb unit may check all the boxes in terms of aesthetics, however, if the tenant doesn’t feel welcome, it all falls flat. A few ways you can enhance guest experience is by having transparent and reliable communication, security, regular housekeeping, and functional amenities such as fast internet connectivity and reliable back-up power.

Airbnb Investment In Nairobi: Location

When it comes to airbnb investment in Nairobi, location is king. The location of your airbnb in Nairobi directly influences the tenant demographics you are likely to attract and, subsequently, the rental income you’ll earn. You therefore need to position your airbnb unit in a strategic location that has proximity to major transport networks, social amenities and commercial centres. Here are the top-performing areas for Airbnb investment in Nairobi:

• Westlands: Upscale corporate and lifestyle hub with strong demand for short-term stays. 
• Kilimani: High-density, high-demand rental market ideal for young professionals.
• Nairobi CBD: Nairobi’s city centre is a commercial hub that typically attracts business travellers on short-stay who want access to conference centres. 
• Riverside: Blue-zone area with premium rental rates and tenants such as diplomats, NGOs, and expartriates.

Conclusion: Is Airbnb Investment In Nairobi Still Viable?

Airbnb investment remains a viable investment strategy in Nairobi thanks to the city’s demand from business and leisure travellers, expatriates and regional hub positioning. However, it is no longer a guaranteed gateway to success because it has shifted from merely owning property, to hospitality-level operations and strategy. Investors also need to take into account factors such as occupancy rates, the location of their airbnb unit, the rental revenue and how they can stand out in the competitive airbnb marketplace. 

Ready to begin your airbnb investment journey in Nairobi?  Our collection of developments is designed to ensure you get the most out of your investment. All you have to do is contact us and we’ll help you secure your spot in Nairobi’s dynamic airbnb market.

Frequently Asked Questions (FAQs)

Is Airbnb a good investment in Kenya?

Yes, Airbnb can be a strong investment in Kenya, especially in high-demand areas such as Westlands, Kilimani, and Riverside. However, profitability depends on factors like location, occupancy rates, furnishing quality, and professional management.

What is the average occupancy rate of Airbnb in Nairobi?

The average Airbnb occupancy rate in Nairobi ranges between 31% and 44%, depending on the location, season, and quality of the property. 

Is Airbnb worth it to make money?

Airbnb can be profitable, but it is no longer guaranteed income. Investors who focus on prime locations, strong interior design, guest experience, and flexible pricing strategies are more likely to generate consistent returns.