upepo
Elder Lister
The Nairobi Airbnb market has undergone a major shift over the past few years, particularly for diaspora investors who initially saw the sector as a lucrative opportunity. During the early growth phase of Airbnb in Nairobi, diaspora homeowners - many returning seasonally from abroad - dominated the market. These property owners converted their apartments into short-term rentals whenever they were away, introducing a level of comfort and convenience that appealed strongly to international visitors and affluent short-stay guests.
As the concept gained popularity, local investors quickly entered the market, leasing apartments specifically to operate them as Airbnbs, much like the rapid expansion witnessed in ride-hailing services such as Uber. However, many overlooked a fundamental business principle: profitability depends on balancing supply with sustainable demand. The initial customer base, largely made up of diaspora visitors and seasonal travelers, was limited and cyclical.
Demand typically peaked during holiday seasons and declined sharply after February. While local weekend renters helped generate some occupancy, they were generally insufficient to sustain high operating costs year-round. As a result, many operators eventually exited the market after struggling with inconsistent bookings and shrinking returns.
Today, the Airbnb units that continue to perform relatively well in Nairobi tend to share a specific profile. Successful properties usually offer amenities that closely match international living standards, including spacious refrigerators with ice-making capability, washer-dryer units, reliable hot showers, large televisions with quality sound systems, uninterrupted WiFi, air conditioning, portable heating options, comfortable modern furniture, and secure locations with ample parking and high-speed elevators. These properties are relatively few and are often owned by diaspora investors who primarily maintain them for personal use before listing them during periods of absence.
There is also a noticeable distinction in presentation and guest experience between many locally operated units and diaspora-owned apartments. The latter often prioritize comfort, design, and convenience in a way that aligns more closely with international hospitality expectations. Developments such as Staroot Residency near Yaya Centre, Silver Harbor Apartments in Kindaruma, Urban Oasis Apartments along King’ara Road near Junction Mall, and Global Trade Centre Nairobi are frequently cited as examples of properties catering to this higher-end market segment.
For apartment owners considering Airbnb as an investment strategy, industry observers increasingly recommend adopting minimum-stay requirements, particularly one-week or longer bookings. This approach can help reduce weekend party rentals while attracting more stable guests. Even then, expectations around profitability should remain realistic. In many cases, Airbnb income today is more suitable for covering maintenance-related costs such as insurance, utilities, security, internet, and routine servicing rather than generating substantial passive income.
At the same time, many diaspora investors are beginning to shift toward alternative platforms better aligned with corporate and long-term travel trends. Platforms such as Furnished Finder, which specializes in vetted medium- and long-term stays, and Turo, a peer-to-peer vehicle rental platform, are increasingly viewed as the next frontier. Furnished Finder, in particular, appeals to healthcare professionals, corporate travelers, and international organizations due to its stricter verification processes and preference for stays exceeding 30 days.
With Nairobi continuing to position itself as a regional diplomatic and corporate hub - especially with increased international and UN-related activity - many believe demand for professionally managed furnished housing and flexible transport solutions will continue to rise. Early adopters of these platforms could potentially gain a significant advantage before the market becomes as saturated and competitive as the Airbnb sector has become.