I had a large airy room with nice hot showers at the Terminal Hotel. Furmiture and beds are ahowing their age, but for the price paid it's a perfectly acceptable option.
Close to Museum and Maasai market, directly opposite a shopping centre including Nakumatt. Walking distance to all points of interest in Nairobi city centre. Nice restaurant next door.

The Terminal Hotel is a great choice for people that want a minimum of comfort in a central location. Rooms have their own bath and are generally clean, with few cockroaches only. It is also a very calm loaction - as long as you request a quiet room that does not neighbour the noisy street or the nearby night club.
The nice concierge might help you find reasonably priced safaris, excursions and overland buses - e.g. a minibus transfer to Arusha for 1300Sh (western tourists are often paying the double). If you are a single male staying in the hotel, you should be aware of the many young women that will try to make friends with you on the street and in the bars next to the hotel, and will turn out to be prostitutes.

Warm and friendly staff always happy to comply with requests, close to banks, shops, restaurants. Old rooms, reasonably clean. Had a few bed bugs otherwise ok.

I stayed at the Terminal Hotel for 3 nights in July. Now mind you, I was backpacking with 2 other friends who I was meeting with in Kenya. I was not traveling with a spouse, I did not have high expecatations of this hotel. It was cheap, in a good location, safe and clean. I never encountered any problems with bugs. Every bed comes with a mosquito net, but I never saw any mosquitos... not to say there weren't any. The rooms were basic, clean and decent. We did have a couple problems with the hot water, but I think we had the same problem in most low budget hotels in Africa.

Overall I would say the Terminal Hotel is perfect if you don't have high expectations. Its perfect for a backpacker, or solo travelers, but I would not recommend it for couples or anyone with "higher" standards. You get what you pay for.