Airbnb – Legal Alert

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Airbnb: Kenya’s Policy, Tax and Regulatory Approach

Policy discussions about internet-based service firms (IBSFs) have increased in Kenya with the most recent action by parliament introducing Digital Service Tax. One of the reasons for regulation is that IBSFs use technological advances to bring innovation to stagnant sectors of the economy, increasing the quality of goods and services, providing opportunities for income generation. Some argue that this innovation should not be regulated in the same way as traditional businesses however others consider any attempt to exclude IBSFs as an attempt to confer undeserved benefit allowing them to profit by flouting regulations under the guise of innovation.

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