Airbnb and Serviced Apartments in Nairobi: Maximizing Rental Returns

Introduction

The rise of short-term rentals has transformed Nairobi’s property market. With the growing number of expatriates, digital nomads, business travellers, and tourists, both Airbnb and serviced apartments in Nairobi have become lucrative options for real estate investors.

But success in this competitive space requires more than just listing a property online. Investors must craft strategies that maximise occupancy, improve guest experiences, and deliver strong returns. This article explores practical strategies for Airbnb and serviced apartments in Nairobi while addressing the gaps competitors often ignore, such as compliance, technology, neighbourhood dynamics, and value-added services.

Why Airbnb and Serviced Apartments Thrive in Nairobi

1. Business Travel: Nairobi is East Africa’s financial hub, hosting multinational offices, UN agencies, and regional headquarters.
2. Tourism: As a gateway to safaris and coastal attractions, Nairobi attracts millions of tourists annually.
3. Digital Nomads: Remote work has fueled demand for fully furnished, short-term rentals.
4. Affordability: Serviced apartments offer more space and amenities at a fraction of hotel costs.
5. Flexibility: Guests enjoy flexible stays, from one night to several months.

Understanding the Difference: Airbnb vs. Serviced Apartments

• Airbnb: A global platform connecting hosts with short-term guests. Properties can be entire apartments, shared rooms, or villas.
• Serviced Apartments: Professionally managed, fully furnished units offering hotel-like services (housekeeping, concierge, Wi-Fi) with more space and privacy.

Both overlap in Nairobi’s market, but serviced apartments often cater to longer stays and corporate clients, while Airbnb attracts tourists and short-term travellers.

Best Neighbourhoods for Airbnb and Serviced Apartments in Nairobi

1. Westlands – Popular with expats, nightlife, and corporate travellers.
2. Kilimani – High demand from professionals, NGOs, and embassy staff.
3. Lavington – Premium stays for families and long-term expatriates.
4. Karen – Upscale villas attracting safari tourists and high-net-worth clients.
5. Ruaka & Two Rivers Area – Affordable serviced apartments near shopping and UN offices.
6. Syokimau & JKIA Vicinity – Transit travellers using the SGR and airport.

Key Strategies for Airbnb and Serviced Apartments in Nairobi

1. Furnish for Comfort and Style

Guests expect modern, functional, and stylish spaces. Prioritize:

• High-speed internet.
• Comfortable beds and seating.
• Fully equipped kitchens.
• Neutral décor with local touches (African art, wood finishes).

2. Professional Photography and Branding

Listings with high-quality images and compelling descriptions attract more bookings. Use professional photographers and brand your property with a unique identity.

3. Smart Pricing Strategies

• Use dynamic pricing tools like Airbnb’s Smart Pricing or third-party apps to adjust rates based on demand.
• Charge premium rates during peak seasons (December holidays, business conferences).
• Offer discounts for long-term stays to attract corporate clients.

4. Leverage Technology

• Install smart locks for seamless check-ins.
• Use property management software to track bookings and expenses.
• Automate guest communication with templates and chatbots.

5. Partner with Property Managers

Many Nairobi investors lack the time for day-to-day operations. Professional management companies handle cleaning, maintenance, guest communication, and marketing—ensuring higher occupancy and ROI.

6. Offer Value-Added Services

Stand out by offering:

• Airport transfers.
• Housekeeping and laundry.
• City tours and safari packages.
• In-house chefs or meal delivery partnerships.

7. Comply with Regulations

Competitors often overlook compliance. In Nairobi, ensure:

• Business registration and KRA tax compliance.
• County permits for short-term rentals.
• Adherence to zoning regulations for apartment blocks.

8. Focus on Reviews and Guest Experience

High ratings drive more bookings. Always respond promptly, resolve issues quickly, and exceed guest expectations.

Related post: Secret Exposed! How much does it cost to build a 4-bedroom house in Kenya?(Updated 2025)

ROI Potential: Airbnb vs. Serviced Apartments

Example 1: Airbnb in Kilimani

• Purchase Price: Ksh 9 million
• Average Nightly Rate: Ksh 7,500
• Occupancy Rate: 70%
• Monthly Income: ~Ksh 157,500
• Annual Net ROI: ~10–12%

Example 2: Serviced Apartment in Westlands

• Purchase Price: Ksh 12 million
• Monthly Rent (Corporate Client): Ksh 180,000
• Annual Net ROI: ~9–11%

Both strategies deliver strong returns, but Airbnb offers flexibility and higher yields, while serviced apartments provide stability with long-term contracts.

Related post: PR032-15 units Mixed Bedsitter and One Bedroom House Plans in Kenya

Future Outlook: Nairobi’s Short-Term Rental Market

1. Corporate Travel Will Grow – As Nairobi cements its position as East Africa’s business hub.
2. Regulation Will Tighten – County governments may introduce stricter compliance rules.
3. Technology Will Dominate – Digital booking platforms, AI-powered pricing, and smart property management will drive efficiency.
4. Competition Will Rise – Success will depend on differentiation, branding, and guest experience.

Tips for First-Time Airbnb and Serviced Apartment Investors

1. Start with one unit before scaling.
2. Choose a location with consistent demand.
3. Calculate ROI with all expenses factored in.
4. Work with reliable contractors for quality finishes.
5. Partner with experienced developers like Marble Engineering and Construction Ltd to avoid construction and furnishing mistakes.

Related post: Best Building and Construction Company in Kenya

Conclusion

Investing in Airbnb and serviced apartments in Nairobi offers a unique opportunity to tap into the city’s booming travel and business market. With the right strategies—ranging from professional furnishing and smart pricing to compliance and value-added services—investors can achieve strong returns and long-term sustainability.

Whether you’re targeting expats in Westlands, professionals in Kilimani, or tourists in Karen, one thing remains clear: strategy determines success.

Ready to build or invest in high-performing serviced apartments? Partner with Marble Engineering and Construction Ltd, Nairobi’s trusted real estate developer. From design to construction and management, they deliver quality projects that maximise your rental income.

Related post: Designing and Constructing Modern 5-Storey Commercial and Apartment Buildings: A Blueprint for Success