The rapid growth of short-term rental accommodation in Kisumu is creating new opportunities for young entrepreneurs, many of whom are building thriving businesses without owning a single property.
Driven by the increasing popularity of Airbnb and the growing demand for affordable, flexible accommodation, young people are leveraging digital platforms to connect travellers with furnished apartments while generating employment and supporting the city’s expanding tourism and business sectors.
For Michael Najabi Mukoya, founder of Kisumu Living, the journey into the hospitality business began unexpectedly during a trip from Nairobi.
“I had no plan. We were just looking for accommodation. I did not even know what Airbnb was at the time. That is when I learned it exists,” he recalled.
What started as a simple search for accommodation has evolved into a growing hospitality brand operating multiple short-term rental units across Kisumu.
A graduate of Economics from Maseno University, Mukoya now works full-time in real estate and Airbnb management. Unlike many property investors, however, his business did not begin with ownership of apartments or significant financial resources.
Instead, he identified an opportunity to act as an intermediary between property owners and travellers looking for accommodation.
“I had no capital, so I decided to become an agent. Airbnb requires money because you need to furnish apartments before you can begin. I therefore started by connecting hosts with guests,” he explained.
His biggest challenge in the early days was earning the confidence of potential clients.
Without apartments to showcase or an established reputation, convincing travellers to trust his services proved difficult.
The internet, however, became his greatest asset.
“The internet changed everything. I got my first clients through Facebook,” he said.
Mukoya began posting available accommodation on Facebook Marketplace under the Kisumu Living brand, often marketing properties before securing long-term partnerships with hosts.
“I was posting every day even before I had enough hosts. People kept responding to my adverts, and that is when I realised accommodation was a genuine business opportunity,” he said.
His breakthrough came when a client booked a one-bedroom apartment in Lolwe Estate.
“At first I thought it was a joke. Someone simply asked whether the apartment was available. I confirmed it was, and they booked it for three nights,” he recalled.
Although he lacked confidence at the time, the successful booking gave him the assurance that the business model could work.
“I was very shy, but when the client actually arrived and stayed, it proved that someone could trust me simply because they had seen my Facebook post.”
From that moment, referrals increased steadily as more property owners entrusted him with managing their apartments.
Today, Kisumu Living manages furnished apartments in several estates, including Milimani, Tom Mboya Estate, Makasembo, Polyview, Lolwe Estate, Mamboleo, Otonglo and the Central Business District.
“We are spread across different parts of Kisumu so that we can serve clients wherever they want to stay,” Mukoya said.
The expansion mirrors wider changes taking place within Kisumu’s hospitality industry. As the lakeside city strengthens its position as a regional centre for conferences, education, trade, healthcare and domestic tourism, demand for alternative accommodation continues to grow.
Hotels are no longer the only option for visitors, with fully furnished apartments increasingly attracting business travellers, families and tourists seeking privacy, flexibility and affordability.
What was once viewed as an alternative to hotels has evolved into a vibrant accommodation sector that serves business travellers, tourists, conference delegates and families seeking flexible lodging options while generating employment for property managers, booking agents, cleaners and digital marketers.
Mukoya says Kisumu’s expanding role as a regional commercial centre has significantly contributed to increased demand for serviced apartments.
The city hosts conferences, academic events, government meetings, sporting activities and business forums throughout the year, attracting thousands of visitors seeking accommodation that combines affordability with comfort.
According to the 2024 Kisumu County Statistical Abstract, the county had 133 classified hotels with a combined bed capacity of 3,650 in 2023. During the same period, Kisumu International Airport handled more than 277,000 passengers, highlighting the city’s growing importance as a transport, trade and tourism hub.
The increase in visitor numbers has created room for alternative accommodation models, particularly furnished apartments that offer greater privacy, kitchen facilities and flexible pricing compared to conventional hotels.
Mukoya says the business has also created employment opportunities for many young people.
“We work with cleaners, maintenance personnel, photographers, online marketers and customer service providers. Every apartment creates work for several people.”
As the enterprise expanded, his role evolved beyond simply matching clients with accommodation.
“We do not just provide a place to sleep. We aim to maximise our clients’ productivity while they are in Kisumu by ensuring they enjoy a comfortable stay.”
He believes quality accommodation directly influences visitors’ experiences.
“Your productivity today depends on how well you slept yesterday. Our responsibility is to make sure every guest rests comfortably.”
Digital marketing remains central to his business strategy.
Mukoya actively promotes available apartments through Facebook, TikTok and other online platforms, saying visibility has become one of the most valuable business assets.
“In today’s world, visibility comes before everything else. You may possess excellent skills, but if nobody knows your business exists, success becomes difficult.”
One TikTok advertisement generated one of his most memorable bookings.
“I had very few followers when I uploaded a video. A lady contacted me through direct message, requested a viewing and later booked one of our Milimani apartments for eight days.”
Although the business continues to grow, several challenges persist.
Capital requirements remain a major obstacle for young entrepreneurs wishing to establish furnished apartments.
“Setting up even one quality apartment requires substantial investment.”
Security also presents ongoing concerns. Occasionally household items disappear after guests leave. Managing multiple apartments requires constant supervision.”
To minimise risks, some properties have installed CCTV cameras in common areas while others require guests to produce national identification documents before checking in.
Mukoya says balancing affordability and security remains a delicate exercise because customers have varying financial abilities.
“We serve both budget-conscious travellers and high-end clients. Concentrating only on expensive neighbourhoods would lock out many potential customers.”
Despite the challenges, he remains optimistic about the future of the short-term rental business.
His advice to young entrepreneurs is to embrace digital opportunities and focus on building trust.
“I encourage young people to explore Airbnb management and other digital businesses. If you learn how to market your services effectively, you can succeed even without owning expensive assets.”
He also emphasises the importance of selecting suitable locations.
“Location is everything. You may have an excellent apartment, but if it is inaccessible or inconvenient, attracting guests becomes much harder.”
As Kisumu continues expanding into a regional business, education and tourism hub, industry observers expect demand for flexible accommodation to continue rising.
For entrepreneurs like Mukoya, the growth represents more than a business opportunity. It demonstrates how innovation, persistence and digital technology are enabling young people to create sustainable enterprises despite limited access to capital.
By leveraging social media, strategic partnerships and customer-focused services, a new generation of entrepreneurs is redefining hospitality in Kisumu while contributing to employment creation, local investment and the city’s broader economic transformation.
