Trusted by farmers, contractors, and businesses across Kenya. Verified calculations based on official 2025 data from KNBS, KALRO, and industry experts.
Profit Margin Top Calculator 2025
Calculate gross profit, net profit, and profit margins for your Kenya business. Compare with industry benchmarks and optimize pricing strategies.
Profit & Margin Calculator
Total sales/income
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Complete Guide to Profit Margins in Kenya
Kenya Industry Profit Margins
| Industry | Gross % | Net % |
|---|---|---|
| Retail (General) | 25% | 5% |
| Supermarkets | 20% | 3% |
| Restaurants/Hotels | 60% | 10% |
| Wholesale | 15% | 4% |
| Manufacturing | 30% | 8% |
| Professional Services | 50% | 15% |
| Construction | 25% | 6% |
| Agriculture | 40% | 12% |
| Technology/IT | 70% | 20% |
| Pharmacy | 30% | 8% |
Margin vs Markup Conversion
| Markup % | Margin % | Example (Cost KES 100) |
|---|---|---|
| 25% | 20% | Sell KES 125 |
| 50% | 33.3% | Sell KES 150 |
| 100% | 50% | Sell KES 200 |
| 200% | 66.7% | Sell KES 300 |
Frequently Asked Questions
What is a good profit margin for small businesses in Kenya?
A good profit margin for small businesses in Kenya typically ranges from 10-20% net profit margin depending on the industry. For retail businesses, 5-8% net margin is considered healthy, while service-based businesses can achieve 15-25% net margins. Restaurants and hotels often target 10-15% net margins after accounting for high operating costs in urban areas like Nairobi.
How do I calculate gross profit margin in Kenyan Shillings?
To calculate gross profit margin in KES: First, subtract your Cost of Goods Sold (COGS) from your Total Revenue to get Gross Profit. Then divide Gross Profit by Total Revenue and multiply by 100. For example, if your revenue is KES 500,000 and COGS is KES 300,000, your Gross Profit is KES 200,000 and Gross Margin is 40% (200,000/500,000 x 100).
What is the difference between markup and profit margin?
Markup is calculated based on cost price, while profit margin is calculated based on selling price. If you buy an item for KES 1,000 and sell it for KES 1,500, your markup is 50% (500/1000 x 100), but your profit margin is 33.3% (500/1500 x 100). Kenyan retailers typically use markup for pricing decisions but track profit margin for financial performance.
Which industries have the highest profit margins in Kenya?
In Kenya, technology and IT services typically have the highest profit margins at 60-70% gross and 15-20% net. Professional services like consulting and legal services follow with 50-60% gross margins. Restaurants and hospitality can achieve 50-60% gross margins but lower net margins due to high operating costs. Manufacturing and retail typically have lower gross margins of 20-30%.
How can I improve my business profit margin in Kenya?
To improve profit margins in Kenya: 1) Negotiate better prices with suppliers, especially for bulk purchases, 2) Reduce overhead costs like rent by relocating to more affordable areas, 3) Increase prices strategically on high-value items, 4) Improve inventory management to reduce waste and theft, 5) Invest in automation and technology to reduce labor costs, 6) Focus on high-margin products or services, and 7) Optimize your supply chain to reduce transport costs.
Disclaimer: This calculator provides profit margin estimates for business planning purposes. Actual profitability depends on many factors including market conditions, competition, and operational efficiency. Industry benchmarks are averages and individual businesses vary. Consult an accountant for accurate financial analysis and tax planning.