Airbnb to Share Transaction Details of Kenyans with KRA in War on Tax Cheats

Kenya Revenue Authority
Kenya Revenue Authority building at Times Towers
Kenyans.co.ke

The Kenya Revenue Authority has sought information on transactions by Airbnbs in the country.

In a statement, it was revealed that the taxman was seeking information on transactions that occurred on the short-term rental platforms between January 1, 2021, to  December 31,  2022.

Airbnb noted that the data being sought after will identify the Kenyans who rented the houses on the platform and the amount of money made in the process.

The Irish company noted that it had already received an official request from its authorities over the matter.

A photo of someone holding a phone with an Airbnb logo in a living room
An undated image of an Airbnb illustration.
Pixabay

"KRA has issued an exchange of information request to the Irish Tax Authority (Irish Revenue) seeking certain information on Kenya hosts, and Irish Revenue has formally requested Airbnb to share this information, which we are legally obliged to do.

Therefore, the affected users whose information will be shared were informed to await a message once their details are shared.

"Irish Revenue will now be communicating to each Kenyan user, whose data is being shared, that their data is being sent to KRA under an exchange of information request," read the statement in part.

"Your earnings on Airbnb are subject to Kenyan tax regulations. If you need to file a tax return, remember that you have a legal obligation to accurately report your earnings on Airbnb to the Kenya Revenue Authority (KRA).

It is not clear whether the taxman will go after those who failed to remit their taxes during that period.

Airbnb is a profitable business in Kenya with hosts making thousands of shillings during periods when there is an influx of travel such as the festivities.

Averagely most residents charge between Ksh2,500 to Ksh5,000 per night.

However, the prices can go as high as Ksh40,000 for certain houses.

A cottage for rent in Watamu on the Airbnb application.
A cottage for rent in Watamu on the Airbnb application.
Photo
Watamu Airbnb