The Anatomy of a Low-Ball Trap
Supplier A quotes KSh 85,000 for branded exhibition merchandise. Supplier B quotes KSh 110,000. On paper, Supplier A looks like a genius bargain. You pay Supplier A a deposit of KSh 40,000.
Three days later, the surprises begin: "Boss, hii quotation haikuwa na VAT ya 16%." Then: "Kazi imefika, lakini offloading na transport kutoka Industrial Area ni yako, lipa KSh 8,000." Then: "Vifungo na packaging hatukuweka, ongeza KSh 12,000."
By the time you finish, Supplier A has cost you KSh 118,600, more than Supplier B, who gave you an honest, all-inclusive price from the beginning!
Send these exact 4 questions to every supplier who gives you a quotation:
- 1. "Is this total price inclusive of 16% VAT and does it come with a valid KRA eTIMS invoice?"
- 2. "Does this quote include transport and offloading to my site in [Your Town], or who pays the truck driver?"
- 3. "Are all fittings, accessories, and consumables included, or will fundis demand extra money tomorrow?"
- 4. "What is your written warranty period, and if something is defective, who pays for return transport?"
Insist on a KRA eTIMS Invoice Every Time
Under Kenyan tax law, any business expense without a valid KRA eTIMS invoice cannot be deducted from your taxable income. If a supplier says: "Hiyo bei ni bila invoice, ukitaka invoice ongeza 16%", that is a red flag.
Every registered taxpayer in Kenya is required to issue eTIMS invoices. A supplier who refuses to provide an official invoice is either unregistered or concealing their turnover.
Always request a sample proforma invoice showing their KRA PIN and physical address before sending payment.
