Fully Managed Payroll in Kenya.
No admin. No guesswork. Just accurate payments and expert support just a phone call away.
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Every Payslip Filed. Every Question Answered.
Kenyan payroll is governed by detailed tax and social security laws. Employers must withhold Pay As You Earn (PAYE) income tax under a tiered system and make mandatory contributions to the National Social Security Fund (NSSF) and the National Hospital Insurance Fund (NHIF). These deductions must be filed and remitted monthly to the Kenya Revenue Authority (KRA) and other relevant bodies.
In addition, Kenya’s Employment Act enforces strict requirements on contracts, leave, termination procedures, and statutory benefits such as housing and overtime. Frequent legislative updates and digital compliance systems like iTax make accurate, up-to-date processing essential.
Our expert-led services and purpose-built payroll platform ensure your payroll in Kenya is always accurate, compliant, and on time. And whenever you need assistance, your dedicated local support team is just a phone call away. So, you can focus on growing your business – not getting bogged down by Kenya’s evolving payroll landscape.
TopSource runs it as part of our global payroll services.
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*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertKenya
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Accelerating your growth in Kenya and beyond
TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment.
Meet our experts for Kenya
Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way.
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Kenya payroll: frequently asked questions
It means a specialist provider runs your Kenyan payroll end to end: calculating gross-to-net pay, withholding PAYE, SHIF, NSSF and the Affordable Housing Levy, filing returns on iTax, and remitting everything to the Kenya Revenue Authority (KRA) by the statutory deadlines. The provider keeps you compliant with the Employment Act 2007 and the frequent statutory changes (the 2024 SHIF rollout and the NSSF rate phases), so you avoid penalties and stay off KRA’s radar. You retain day-to-day management of your team while the administrative and compliance burden shifts to the provider.
PAYE is a progressive monthly tax the employer withholds from each employee’s pay: 10% on the first KES 24,000, 25% on the next KES 8,333, 30% up to KES 500,000, 32.5% from KES 500,001 to KES 800,000, and 35% above KES 800,000. Every resident employee gets a personal relief of KES 2,400 per month (KES 28,800 a year), which is subtracted from the tax due. Employers file the P10 return and remit the tax to KRA via iTax by the 9th of the following month.
Kenyan payroll carries four core statutory items: PAYE income tax, SHIF health contributions (2.75% of gross, employee-borne, which replaced NHIF), NSSF pension contributions (6% employee and 6% employer under the NSSF Act 2013), and the Affordable Housing Levy (1.5% employee plus 1.5% employer). SHIF and the Housing Levy are both charged on full gross pay with no upper cap, while NSSF is capped by an earnings ceiling. The employee’s Housing Levy and NSSF contributions are deductible before PAYE is computed.
Under the NSSF Act 2013, both employer and employee contribute 6% of pensionable pay, split into Tier I (up to the lower earnings limit) and Tier II (between the lower and upper limits). From 1 February 2026 (Phase 4), the lower limit is KES 9,000 and the upper limit is KES 108,000, giving a maximum of KES 540 in Tier I and KES 5,940 in Tier II, i.e. up to KES 6,480 per side (KES 12,960 combined) for higher earners. Employers may contract Tier II out to an approved private retirement scheme.
To hire and pay staff directly, you generally need a registered Kenyan entity with KRA (PIN), NSSF and SHA/SHIF registrations, which typically takes several weeks to set up. Alternatively, an Employer of Record (EOR) already has a compliant local entity and can legally employ, payroll and onboard your workers in Kenya, usually within one to two weeks, without you incorporating. This lets you test the market or hire a small team while the EOR handles statutory filings and remittances.
On top of gross salary, employers fund an NSSF pension contribution of 6% (up to KES 6,480 per month from February 2026) and the employer’s 1.5% Affordable Housing Levy on gross pay. SHIF (2.75%) and PAYE are employee-borne, so the employer’s direct on-cost is modest, broadly in the region of 8-9% of salary depending on pay level. All employee deductions plus the employer shares must be remitted to KRA and NSSF by the 9th of the following month.