KENYA · GUIDE 0773 · EDITION 4.7
Fabric scrap rug making in Kenya: Pricing, Costing and Cash Flow Example
Editorial update: 28 October 2026 · Business planning reference · Review scope
Use one accepted sale unit throughout
Work through a fictional KSh 6,900.00 invoice against KSh 5,500.00 of selected cost lines; distinguish the invoice from collected cash.
This is a planning reference for fabric scrap rug making. The order below is an invented teaching case. It is not a completed customer job, an operating approval or a prediction of demand or earnings.
The example offer and its boundary
Fictional batch: six 45 × 70 cm hand-braided decorative rugs from clean unused cotton-rich garment offcuts, one approved colour palette. Supply care labels and state that no slip-resistance certification is provided; exclude stairs, wet floors and safety-critical uses.
Charging basis to confirm: Finished rug. The rates and quantities below are teaching assumptions. Even a previously recorded listing is not adopted here as a current quotation or an earnings forecast.
Itemised arithmetic
| Selected input/activity | Quantity | Assumed unit rate | Selected cost |
|---|---|---|---|
| Usable offcuts kg | 6 | KSh 150.00 | KSh 900.00 |
| Thread and notions | 1 | KSh 300.00 | KSh 300.00 |
| Labour hours | 18 | KSh 200.00 | KSh 3,600.00 |
| Labels and wrapping | 6 | KSh 50.00 | KSh 300.00 |
| Transport | 1 | KSh 400.00 | KSh 400.00 |
| Calculation | Teaching result |
|---|---|
| Selected cost total | KSh 5,500.00 |
| Priced/accepted output | 6 example units |
| Assumed selling price | KSh 1,150.00 |
| Assumed invoice | KSh 6,900.00 |
| Difference before excluded costs and tax | KSh 1,400.00 |
Illustrative total KSh 5,500; cost KSh 916.67 per rug rounded. Six at KSh 1,150 produce KSh 6,900, leaving KSh 1,400 before overhead/tax. Actual fabric yield must come from the sample, not assumed kg-to-rug conversion.
Check cash timing and a weaker outcome
TRAINING-0773: a fictional order for the scoped offer in section 01, using 6 priced units at KSh 1,150.00 each. Buyer group: Households and decor retailers. No buyer was contacted and no order was completed.
Teaching invoice = 6 x KSh 1,150.00 = KSh 6,900.00. The selected input lines in section 06 total KSh 5,500.00; their difference from this assumed invoice is KSh 1,400.00 before excluded costs and tax.
For cash-timing practice only, suppose a buyer pays a 30% advance of KSh 2,070.00. The invoice balance is KSh 4,830.00. If the selected input bill is paid before the balance arrives, additional cash of KSh 3,430.00 is needed after applying the advance. The advance is counted once, not again at final collection.
On full collection, total receipts are KSh 6,900.00. Cash against the selected example bill is KSh 1,400.00 before other payments. If a hypothetical 10% increase in the largest selected line (Labour hours) adds KSh 360.00, the unchanged invoice leaves KSh 1,040.00 against that revised bill.
If the customer instead leaves 10% of the invoice unpaid, KSh 690.00 is a receivable. Cash collected is KSh 6,210.00 and collected cash less the selected bill is KSh 710.00. This differs from invoice margin; do not spend the unpaid amount as though it is already cash.
The scenario is complete only as a teaching record of the stated lines. Add actual excluded startup and operating costs using file 12, and replace every assumed rate before relying on a quote. Use measured accepted output for the actual invoice; unaccepted output is not automatically chargeable.
For an actual quote, add all relevant excluded costs, use measured accepted output, and compare amounts from the same period. An unpaid invoice balance is not available cash. A deposit held for an uncompleted obligation is not automatically earned income.
References and their limits
NEMA: Waste Management in Kenya
Official waste-handling/transport/disposal framework; actual activity/provider requirements must be confirmed. Reference check recorded 2026-10-26.
KRA: What is eTIMS
Official invoicing route; no tax rate or individual tax advice inferred. Reference check recorded 2026-10-26.
Recorded references support only the scope stated beside them. They do not prove current supplier stock, a local quotation, actual buyer demand, operator competence or the feasibility of this particular business. Later editorial changes do not refresh earlier source-check dates.
Prepared by Business Starter Guides using AI-assisted drafting and desk editorial checks. Independent operator trials and specialist certification are not claimed. See the editorial method for the review scope.
Editorial method and evidence limits