Its natural habitat is moist savanna, although it has also been shown to inhabit woodlands and coastal forests.

The ears are proportionally large compared to their size and have rounded tips.

[4] The echolocation for this species is a relatively low-intensity call that lasts about two milliseconds with a low frequency peak of around 90-118 kilohertz (kHz).

[6] As with several other Kerivoula species, the Damara woolly bat uses abandoned nests of weaverbirds and the scarlet-chested sunbird.

The range of the bats extends across much of sub-Saharan Africa and has been identified in Angola, Côte d'Ivoire, Democratic Republic of the Congo, Eswatini, Kenya, Malawi, Mozambique, Namibia, Senegal, South Africa, Tanzania, Uganda, Zambia, and Zimbabwe.