It is found in Botswana, Central African Republic, Democratic Republic of the Congo, Ivory Coast, Ethiopia, Gabon, Ghana, Guinea, Kenya, Liberia, Malawi, Nigeria, South Africa, Tanzania, Zambia, Zimbabwe and rarely Ethiopia.

Members of this species typically have a dark greyish brown fur with whitish tips scattered throughout.

Aquatic environments are generally inhabited, and when found in dryer climates such as forests or the savannah, they are generally near streams or in well watered areas.

The nests constructed by birds, such as speckle-fronted weaver, provide protection from predators and the elements.

likely as a result of the benefits gained from roosting in these nests, the lesser woolly bats have been known to roost in abandoned nests previously inhabited by speckled weavers, scarlet-chested sunbirds, and several others.