Most people planning to climb Mt. Kilimanjaro usually end up staying somewhere near the base of the mountain – Marangu, Moshi, or sometimes Arusha, although it’s about one hour away. I would recommend my favorite little town of Moshi, which sits right at the base of the mountain.
It’s a pretty small town, with a bustling market, a number of hotels – both cheap and expensive – internet cafes, and a FEW places to find some good food. I like Moshi because it doesn’t feel too touristy. You can sense there is a lot of other business going on, and people generally don’t bug you too much. It’s more more bearable than Arusha, with all its touts trying to sell you crafts.
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Read more about Moshi Town on Wikipedia
If you are looking for more night life, then I would stay in Arusha.