What a quotation is — and how to write one that wins the job
A quotation is a formal offer to supply goods or services at a stated price, sent before the customer commits. In Kenya it is the document that turns an enquiry — “how much for…?” — into a sale. A clear, professional quote signals that you are a serious business and heads off the price arguments that sour so many small deals.
Legally, a quotation is an invitation to treat, not yet a binding contract — until the customer accepts it, often by issuing a purchase order or paying a deposit, at which point its terms become the deal. That is why a good quote always states how long the price is valid and what the payment and delivery terms are.
If you are registered for VAT (required once your turnover passes KES 5 million a year), show the 16% VAT separately so the customer sees the tax-inclusive total up front. Businesses below the threshold quote without VAT.
What a proper quotation includes
- ◆Your business name, contacts and — if registered — your KRA PIN
- ◆A unique quotation number and the date
- ◆The customer’s name
- ◆A line-by-line breakdown: item, quantity, unit price, amount
- ◆Subtotal, VAT (16% if you are VAT-registered) and the total
- ◆How long the price is valid (e.g. 30 days) — costs move, protect yourself
- ◆Payment terms and delivery / lead time
Common mistakes to avoid
- ✕Quoting one lump sum with no breakdown — customers distrust it and can’t compare
- ✕Leaving out a validity period, then being held to an old price when your costs have risen
- ✕Forgetting delivery or lead time — the number-one cause of “but you said…” disputes
- ✕Hiding VAT, so the final invoice shocks the customer
Questions
Is a quotation legally binding in Kenya?
Not on its own — it is an invitation to treat. It becomes binding once the customer accepts it (by signing, issuing a purchase order, or paying a deposit), and then its price and terms govern the deal. That is why the validity period matters.
What’s the difference between a quotation and a proforma invoice?
A quotation is an offer to win the work; a proforma invoice is a fuller, invoice-styled document usually sent once the customer has decided, so they can arrange payment. Both are non-tax documents — neither lets the buyer claim VAT. The real tax invoice comes after.
Should I charge VAT on my quotation?
Only if your business is registered for VAT — required once turnover passes KES 5 million a year. If so, show the 16% separately. Below the threshold and not registered, you quote without VAT.
How long should a quotation be valid?
Thirty days is the common default in Kenya. Make it shorter if your input costs (materials, fuel, forex) move quickly. Stating a validity period protects you from being held to a stale price.
Can I send a quotation on WhatsApp?
Yes — that is how most Kenyan SMEs close deals. Download the PDF and share it; a clean, branded quote looks far more credible than a figure typed into a chat.
The quotation generator is free to build and preview. Downloading a clean PDF without the small watermark is KES 100 in Kenya — a one-off, valid for a few hours so you can make several — and free everywhere else. No account needed; your business details are saved on your own device.