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"Kindly let us know" is a very formal (and somewhat British) way of concluding a letter that has requested some information. For example, your company offered someone a job, and the office of personnel sent that person a letter making an offer of employment to them. The formal letter would conclude with something like "Kindly let us know of your interest in the position, so that we may arrange a starting date for your employment." So, yes that phrase does contain proper grammar, but today, most people's writing style tends to be more conversational, so you would more likely see "please let us know."

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