Airbnb Whiz Kids Fight to Survive Covid-19 Fallout

For the past three months, Airbnb hosts in Kenya have struggled with unprecedented financial fallout occasioned by a wave of cancellations due to the Covid-19 pandemic.

Hundreds of hosts countrywide say they are taking a heavy financial hit as pandemic-instigated travel control continues to keep their local and international visitors away.

Jane W. who asked CK to initialise her second name citing privacy concerns has rented two apartments in Nairobi’s Lang’ata estate and listed them on Airbnb.

She has been making a tidy profit until the end of March when the coronavirus outbreak in Kenya silenced the sound of her guests’ wheeled suitcases.

“The demand collapsed abruptly,” laments Jane, 26, a local Airbnb host since February 2018.

She was hoping the restrictions would be lifted soon and therefore decided to hang on to the business. But as the skies remain closed for flights, Jane is struggling to pay her bills.

“I haven’t paid rent for May and June. Next week the debt will rise to Sh192,000,” she said.

Unlike Jane, Peter Wambugu, 32, whose apartment in Kilimani has been fully booked since last December, is still earning some income thanks to his change of strategy. He advertised the unit on social media and attracted a lady who was looking for a fully furnished house.

“She had separated from her husband and was looking to move into a fully furnished apartment in Kilimani. We agreed on the terms and I can’t complain now,” Wambugu said.

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Before the restrictions of travel between Nairobi and Mombasa, individuals on business trips in either city would take up accommodation in Airbnb, most of which charge between Sh2,500 and Sh5,000 per night compared to upward of Sh8,000 for hotels.

The rising demand for non-hotel accommodation has seen many youths renting apartments in strategic areas across major towns and listing them on Airbnb.

Many hosts have previously reported making over Sh100,000 a month from their listings.

Some of the popular addresses among Airbnb hosts in Kenya include Kilimani, Kileleshwa, Lang’ata, Karen, and Westlands in Nairobi, as well as Mombasa, Malindi, and Diani.

By December 2018, there were more than 6,500 listings in Kenya, with Nairobi taking the lead. According to Airbnb data, local hosts earned Sh510 million between January and September 2018, up from Sh390 million during a similar period in 2017.

With the Covid-19 pandemic, many hosts are worried that even after flights take to the skies again a large number of travellers may not be returning to Airbnbs.

There is widespread fear that most business meetings and events will be held virtually – leaving thousands of houses empty.  

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