How to Price a Government Tender in Kenya (2026): The Exact Formula

One of the most common reasons Kenyan SMEs lose government tenders isn't poor qualifications, weak experience, or bad documentation.

Either too high (disqualified as non-competitive) or too low (win the tender but make zero profit, or worse, make a loss).

Pricing a government tender correctly is a skill. And like any skill, once you understand the framework, it becomes repeatable.

Before we get into the formula, let's name the four pricing mistakes that kill most bids:

Pricing to win instead of pricing to profit

Here is the framework used by successful Kenyan government contractors: