The Role of Homestay Operators’ Knowledge and Skills in Enhancing their Business The homestay concept is a form of community participation in tourism. In Kenya, the concept is growing and has received important recognition from the government. This probably is a quick solution to solving the puzzle of distribution of tourism benefits throughout the country and a strategy of increasing bed capacity. However, little attention has been given to the ability of homestay operators’ to run the homestay business successfully and derive sustainable incomes. In particular, no research has been done on the contribution of the homestay operators’ knowledge and skills in providing a seamless homestay experience. This paper provides useful insights into this phenomenon. Cross sectional research design was used and census technique utilized to target the entire homestay operators population in Taita Taveta County. Educational qualification of the operators had a statistically significant effect on their knowledge and skills to run the homestay business and their incomes. This finding opens up an opportunity for the government and trainers in the tourism and hospitality industry to conduct a training needs assessment for the homestay operators and develop a curriculum tailor-made to meet these needs.