Cost of goods
What the business paid for the goods it sold, including what it took to get them onto the shelf.
Also called
You will also see this written as cost of sales and cogs. Kenyan businesses use these interchangeably in conversation even where the underlying things differ, which is worth knowing when someone tells you what you need.
Where you meet this
Cost of goods is what you paid for what you sold, including getting it there. Leaving transport and shrinkage out of it is the commonest way a business convinces itself a line is profitable when it is not.
What it sits alongside
In Kenyan business records cost of goods sits alongside Margin, Inventory and Pricing. The pages for each explain how they connect.
Related terms
Common questions
What does Cost of goods mean in Kenya?
What the business paid for the goods it sold, including what it took to get them onto the shelf.
Is Cost of goods the same as cost of sales?
In everyday use Kenyan businesses treat these as the same thing. What the business paid for the goods it sold, including what it took to get them onto the shelf.
How do I know this information is current?
Tax rules in Kenya change with each Finance Act and with regulations made during the year. Before acting on any figure, deadline or threshold, check the current position on KRA's own website.
Sources
- officialKenya Revenue Authority — Kenya Revenue Authority, checked 2026-09-18