The young forward netted for the Baggies in the FA Cup on Saturday but still looks unhappy at the Hawthorns, Kilbane says.
Berahino has most strongly been linked with Tottenham following the north London club's failed bids for the 22-year-old over the summer. The Daily Star has most recently credited Spurs, Liverpool and Stoke City with interest in the forward.
For Kilbane, there are no two ways about it. He has urged West Brom to sell Berahino and reinvest the funds in Tony Pulis's squad.
Kilbane told the BBC during Saturday afternoon's FA Cup action: "I think that West Brom should let Saido Berahino go. He's clearly still not happy in the squad. Let him go and then take that money to reinvest in the squad."
The problem for West Brom, of course, is the small matter of the 22-year-old's transfer fee. Berahino hasn't been in and among the goals of late - nor has he been in and among the game time.
Why would Tottenham, Stoke or anyone else offer big money for a player out of form and not match sharp?
It's an interesting situation for the Baggies - what will Pulis and Jeremy Peace end up doing this January?