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Payroll software in Kenya

Payroll software in Kenya

PayrollMaster Africa is payroll software for Kenyan employers. It calculates PAYE, NSSF, SHIF and the Affordable Housing Levy on every payslip, files the monthly returns with KRA, and pays staff in Kenyan shillings. Kenyan companies use it to run compliant payroll without hiring a dedicated payroll specialist.

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Compliance

What must a Kenyan employer deduct from every payslip?

5 statutory items, collected by 4 different bodies. PayrollMaster calculates each one on the same payslip.

Kenyan employers pay monthly, usually on or before the last working day. Since December 2024, SHIF and the housing levy are allowable deductions that reduce taxable pay before PAYE is calculated — which changes net pay even when no headline rate moves.

Choose a country to see its statutory payroll deductions

The statutory stack

What comes off a Kenyan payslip

  • PAYE Kenya Revenue Authority (KRA) Employee
  • NSSF National Social Security Fund (NSSF) Both
  • SHIF Social Health Authority (SHA) Employee
  • Housing Levy Kenya Revenue Authority (KRA) Both
  • NITA levy National Industrial Training Authority (NITA) Employer

5 statutory items in Kenya. PayrollMaster calculates every one, files with KRA, and pays staff in KES.

Statutory payroll deductions in Kenya, the body that administers each one, who pays it, and the current rate.
DeductionAuthorityPaid byRate
PAYE Pay As You EarnKenya Revenue Authority (KRA)EmployeeGraduated 10%–35% across five monthly bands, with personal relief of KES 2,400 per month Source · in force from 2023-07-01
NSSF National Social Security FundNational Social Security Fund (NSSF)Employer + employee6% employee + 6% employer, on pensionable pay up to KES 108,000/month (Year 4 rates) Source · in force from 2026-02-01
SHIF Social Health Insurance FundSocial Health Authority (SHA)Employee2.75% of gross pay, minimum KES 300/month, no upper cap Source · in force from 2024-10-01
Housing Levy Affordable Housing LevyKenya Revenue Authority (KRA)Employer + employee1.5% employee + 1.5% employer of gross pay, no cap Source · in force from 2024-03-19 Sources disagree. In force under the Affordable Housing Act 2024, which the High Court upheld. A consolidated constitutional challenge was heard by a five-judge Court of Appeal bench on 19 January 2026 and, as at 14 July 2026, no judgment has been published. The levy stands until one is. This is the only genuinely unresolved rate on the site.
NITA levy National Industrial Training LevyNational Industrial Training Authority (NITA)EmployerKES 50 per employee per month, employer-paid Source Sources disagree. Remittance frequency is unclear: the levy is quoted per employee per month but reported by some sources as payable annually.

Rates last reviewed 2026-07-14 against Kenya Revenue Authority and other official sources. Where authorities genuinely conflict, both readings are shown rather than resolved. Statutory rates change with every finance act — confirm current figures with a local practitioner before relying on them. PayrollMaster applies the current rates centrally, so your payroll run does not depend on this table being fresh.

Estimate take-home pay with the Kenya salary calculator

What we have

Everything in the Kenya payroll platform

Fifteen areas, one system, for Kenya. Not a feature list bolted on — the platform a payroll team actually runs on.

Payroll

Run a pay cycle end to end, at any size.

  • Payroll engine

    A full pay run, calculated in one click.

  • Pay components

    Any earning, deduction or contribution, your way.

  • Payslips

    Payslips your way, delivered for you.

  • Approvals

    One inbox for every sign-off.

Compliance

Statutory rules, returns and reports that hold up to an audit.

  • Statutory compliance

    Statutory rules that update themselves.

    In Kenya, PayrollMaster applies PAYE, NSSF, SHIF, Housing Levy, NITA levy and produces the returns KRA expects.

  • Reports & analytics

    The numbers your accountant asks for.

People

The whole employee record, leave and self-service.

  • Employee management

    The whole employee record, in one place.

  • Leave & holidays

    Leave balances that count themselves.

  • Employee self-service

    The questions stop reaching your inbox.

Flexible workforce

Casual and gig payroll, loans and advances.

  • Casual & gig payroll

    Casual and gig workers on the same platform.

    Kenyan casual workers are paid against local minimum-wage floors, with sub-monthly PAYE handled correctly.

  • Loans & advances

    Staff loans that reconcile themselves.

Platform

Integrations, agencies, security and the things that scale.

  • Accounting integrations

    Payroll lands in the system you already run.

  • Multi-company & agencies

    Run payroll for every client from one account.

  • Security & access

    The most sensitive data you hold, treated that way.

  • Platform

    Localised, branded and built to grow into.

Pricing in Kenya

What does payroll software cost in Kenya?

PayrollMaster is priced per employee per month and billed in Kenyan shillings (KES). There is no setup fee, and statutory filing with Kenya Revenue Authority is included rather than charged per submission.

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Questions

Payroll in Kenya: common questions

Is PayrollMaster KRA compliant?

Yes. PayrollMaster calculates PAYE using KRA’s current graduated bands, applies personal relief, and produces the monthly PAYE return in the format KRA’s iTax system expects. Statutory deductions for NSSF, SHIF and the Affordable Housing Levy are calculated on the same payslip and remitted together.

Does PayrollMaster handle SHIF now that NHIF has been replaced?

Yes. SHIF replaced NHIF as Kenya’s statutory health deduction in October 2024, and PayrollMaster deducts SHIF on every payslip and remits it to the Social Health Authority. If your payroll still produces an NHIF line, it is producing an incorrect payslip.

How much does payroll software cost in Kenya?

PayrollMaster charges per employee per month, billed in Kenyan shillings, with no setup fee. A 25-person Kenyan company pays less than the cost of outsourcing payroll to a local accounting firm, and the price includes statutory filing rather than charging separately for it.

Can PayrollMaster pay employees into Kenyan bank accounts and M-Pesa?

Yes. PayrollMaster calculates net pay in Kenyan shillings and records each employee’s payment method — bank, mobile money, cash or cheque, with multiple accounts and salary splits — then tracks the status of every payment on the run. Payslips are generated and emailed in bulk, and no run is final without an authorised approval.

Run Kenyan payroll without the spreadsheet

Start free and run one real Kenya month — the deductions, the payslips, and the filing that comes out of it. Compare it against whatever you use today before you switch anything.

30-day free trial. No credit card.