KENYA · GUIDE 0281 · EDITION 4.7
Sandal 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 3,500.00 invoice against KSh 3,060.00 of selected cost lines; distinguish the invoice from collected cash.
This is a planning reference for sandal 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 sandal job: one adult matched pair with two simple upper straps per foot, an identified sole pair and client-approved footbed/strap templates. No orthopaedic, protective, slip or load rating. Skilled shoemaker confirms material/joint system before construction.
Charging basis to confirm: pair. 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 |
|---|---|---|---|
| Sole pair hypothetical input, pair | 1 | KSh 900.00 | KSh 900.00 |
| Strap leather, square metre | 0.2 | KSh 3,000.00 | KSh 600.00 |
| Compatible adhesive allocated use, gram | 20 | KSh 8.00 | KSh 160.00 |
| Thread/hardware, set | 1 | KSh 150.00 | KSh 150.00 |
| Make fit inspect labour, hour | 5 | KSh 250.00 | KSh 1,250.00 |
| Calculation | Teaching result |
|---|---|
| Selected cost total | KSh 3,060.00 |
| Priced/accepted output | 1 example units |
| Assumed selling price | KSh 3,500.00 |
| Assumed invoice | KSh 3,500.00 |
| Difference before excluded costs and tax | KSh 440.00 |
Illustrative batch cost KSh 3060; allocated cost per sale unit KSh 3060.00; assumed receipts 1 × KSh 3500 = KSh 3500; pre-tax scenario surplus KSh 440. All unobserved rates are invented planning assumptions, not market quotes. This is not net profit: tax, premises, permits, equipment, returns, unsold stock and other unlisted fixed costs remain unresolved. Replace with actual accepted quantities and delivered quotes before pricing.
Check cash timing and a weaker outcome
TRAINING-0281: a fictional order for the scoped offer in section 01, using 1 priced units at KSh 3,500.00 each. Buyer group: Local customers seeking everyday footwear in specific sizes. No buyer was contacted and no order was completed.
Teaching invoice = 1 x KSh 3,500.00 = KSh 3,500.00. The selected input lines in section 06 total KSh 3,060.00; their difference from this assumed invoice is KSh 440.00 before excluded costs and tax.
For cash-timing practice only, suppose a buyer pays a 30% advance of KSh 1,050.00. The invoice balance is KSh 2,450.00. If the selected input bill is paid before the balance arrives, additional cash of KSh 2,010.00 is needed after applying the advance. The advance is counted once, not again at final collection.
On full collection, total receipts are KSh 3,500.00. Cash against the selected example bill is KSh 440.00 before other payments. If a hypothetical 10% increase in the largest selected line (Make fit inspect labour, hour) adds KSh 125.00, the unchanged invoice leaves KSh 315.00 against that revised bill.
If the customer instead leaves 10% of the invoice unpaid, KSh 350.00 is a receivable. Cash collected is KSh 3,150.00 and collected cash less the selected bill is KSh 90.00. 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
Henkel Loctite Shoe Glue datasheet
Specific adhesive limitations and instructions; no universal substrate, bond-strength or local stock claim. Reference check recorded 2026-10-26.
Tandy Craftool Burnishing Solution
Prepared compatible leather-edge use only; no universal finish or Kenyan supply claim. Reference check recorded 2026-10-26.
Tandy: Mastering Leather Edges
Manufacturer edge-preparation/finishing reference only; not pattern validation, adhesive approval, footwear safety or load certification. 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