Ozi’s Bed and Breakfast Hotel was a great and perfectly safe place to stay in Malindi. Breakfast was included and was wonderful. The location was perfect- near ocean and market. I didn't spend too much time in Malindi, but Ozi's suit the bill!
It was low season, so there weren't many people staying there...seemed like a stop-over place mostly people coming and going from Lamu, etc.
Bed comfortable, provided mosquito nets and fan, clean sheets, slightly dirty bathroom and shower- but oh well.
Bring ear plugs, the mosque across the street starts at 4am- quite loud, but 'tis the culture in Malindi...probably true anywhere you stay! Enjoy