Payroll Services
in Kenya
Two Max Group delivers 100% compliant payroll outsourcing for foreign-owned subsidiaries, multinationals, NGOs, and high-growth businesses in Kenya. Accurate PAYE, NSSF, SHIF, and Housing Levy — filed before the 9th of every month. No exceptions. No penalties. KES 0 in KRA penalties across all client accounts.
What is managed payroll
in Kenya?
In the evolving regulatory landscape of Kenya, managing payroll is no longer just about issuing payslips. It is about forensic compliance with the Finance Act 2025, the Employment Act (Cap 226), and the latest directives from the Kenya Revenue Authority (KRA).
Two Max Group removes the administrative burden of payroll administration, ensuring your staff are paid on time and your statutory obligations are met with surgical precision. From multi-currency salary disbursements to complex iTax reconciliations, we handle it all.
Kenya payroll means managing the full cycle from gross salary to net pay — every month, on time, for every employee. That means PAYE computation against five KRA bands, NSSF contributions, SHIF deductions, Housing Levy, and NITA where applicable, with every remittance made by the statutory deadline.
Under the Employment Act and Finance Act, penalties for non-compliance are real: missed KRA filings attract 5% penalties plus 1% monthly compounding interest. SHIF replaced NHIF in October 2024. The Housing Levy was reintroduced. NSSF tiers changed in February 2026. Each change requires immediate system updates.
Monthly KRA PAYE Filing
PAYE is filed by the 9th of each month via KRA iTax. A missed deadline means a 5% penalty plus compounding monthly interest | automatically assessed by KRA.
NSSF Tier I and Tier II
NSSF Act 2013 requires two contribution tiers. Tier I covers KES 0–9,000 at 6% each. Tier II covers KES 9,001–108,000 at 6% each. Maximum combined contribution is KES 12,960 per employee per month.
SHIF | 2.75% of Gross
Social Health Insurance Fund replaced NHIF from October 2024. Employee contribution is 2.75% of gross salary, remitted monthly to the Social Health Authority. Tax-deductible from December 2024.
Affordable Housing Levy
1.5% from employee and 1.5% from employer. Effective 19 March 2024. The employee contribution became tax-deductible from 27 December 2024.
Itemised Payslips
The Employment Act requires every employee to receive a payslip showing gross pay, each deduction, and net pay. Digital or printed | your choice.
Kenya Payroll Compliance — Every Deduction Managed
KRA PAYE & iTax
Precise computation of monthly PAYE, including personal relief, insurance relief, and interest-free loans.
NSSF & SHIF
Automated management of NSSF Tier I/II and the new Social Health Insurance Fund (SHIF) contributions.
Housing Levy
Compliant administration of the 1.5% Affordable Housing Levy for both employees and employers.
NITA & HELB
Tracking and remittance of NITA training levies and HELB student loan deductions.
Kenya Payroll Statutory
Deductions We Manage
Every statutory deduction in Kenya | filed accurately and on time, every month.
PAYE Computation & iTax P10 Filing
PAYE is filed by the 9th of every month via KRA iTax. Miss the deadline and penalties start accruing automatically.
- Five-band progressive tax from 10% to 35%
- Personal relief of KES 2,400 per month applied
- P10 return filed on iTax before 9th monthly
- Amended returns and correspondence with KRA
NSSF Tier I and Tier II Management
NSSF has two tiers with different contribution bases. Wrong calculations expose the employer to back-payment liability.
- Tier I | 6% employee + 6% employer on KES 0–9,000
- Tier II | 6% each on KES 9,001–108,000
- Monthly schedules submitted to NSSF portal
- Employer & employee shares tracked separately
Social Health Insurance Fund (SHIF)
SHIF replaced NHIF from October 2024 under the Social Health Insurance Act 2023. The 2.75% deduction applies from first employment day.
- 2.75% of gross salary | employee only
- Remitted monthly to Social Health Authority
- Tax-deductible from December 2024
- Replaced NHIF across all employer accounts
Affordable Housing Levy
Both employee and employer contribute 1.5% of gross salary monthly. The levy was challenged in court, reinstated, and the employee portion is now tax-deductible.
- 1.5% employee contribution | tax-deductible
- 1.5% employer contribution | matched
- Administered via NSSF or SHA portal
- Effective 19 March 2024
Itemised Payslips per Employment Act
Every employee must receive a payslip showing gross pay, each deduction, and net pay per pay cycle | per Employment Act, Cap 226 requirements.
- Payslips issued every pay cycle
- Shows PAYE, NSSF, SHIF, Housing Levy, NITA
- Employee and employer NSSF split shown
- Digital or printed format | your choice
Payroll Records & Audit Trail
KRA requires five years of payroll records. Our managed payroll produces a complete, audit-ready trail for every cycle.
- P10 returns | filed and retained
- NSSF schedules | payment confirmations stored
- SHIF receipts and SHA remittance records
- 5-year accessible archive | searchable
Why Choose Our Payroll Services
in Kenya?
Outsourcing your payroll to a local specialist in Nairobi provides more than just efficiency; it provides institutional security. The penalties for late filing or incorrect computation in Kenya are aggressive — often starting at 5% of the outstanding balance plus monthly interest.
100% Statutory Compliance
We guarantee that all monthly P10 returns (PAYE), NSSF, SHIF, and Housing Levy filings are completed before the 9th of each month. Our process includes a double-verification layer to ensure that KRA iTax ledgers always reconcile perfectly with your bank disbursements.
Multi-Currency Capability
Many of our multinational clients prefer to manage their budgets in USD, EUR, or GBP. We provide seamless conversion and disbursement into local KES bank accounts or M-Pesa wallets, ensuring your employees receive their exact net pay regardless of currency fluctuations.
Confidentiality & Data Privacy
Your payroll data is sensitive. We adhere to the Data Protection Act (2019) and global GDPR standards, utilising secure, encrypted portals for data exchange and payslip distribution.
What makes our Kenya
payroll different?
We treat payroll compliance as a non-negotiable, not an aspiration. Every client account is managed to the same standard | a P10 return filed before the 9th, deductions calculated against current rates, and records retained for the full five-year KRA period.
Request a Payroll ProposalKRA Filing Before the 9th, Without Exception
Most payroll providers file when they get around to it. We file on time, every time. Our zero late-filing record across all accounts is a structural guarantee, not a promise.
Finance Act 2025–2026 Compliant From Day One
Kenya's Finance Act changes every year. SHIF, the Housing Levy, NSSF tier adjustments | our system updates the moment a change is gazetted. You don't need to ask.
Multi-Currency Ready
Fund your Kenya payroll in USD, GBP, EUR, or KES. We handle conversion, local disbursement, and consolidated reporting formatted for group treasury.
EOR and Direct Payroll | Same Standards
Whether staff are on your Kenyan entity or ours (via EOR), the statutory standards, filing calendar, and record quality are identical.
Live Within 48 Hours
We can have your payroll operational within 48 hours of engagement | with PAYE, NSSF, SHIF, and Housing Levy all running from go-live.
No Penalty Record
A single missed KRA filing attracts a 5% penalty plus 1% monthly compounding interest. Our track record across 385+ client accounts is KES 0 in statutory penalties.
Our Payroll
Deliverables
Every managed payroll engagement includes a fixed set of monthly deliverables — no extras to unlock, no hidden modules.
Gross-to-Net Calculations
Detailed monthly payroll registers showing all earnings, deductions, and employer contributions.
Statutory Filings
Preparation and submission of iTax (PAYE), NSSF, SHIF, and AHL returns.
Payslip Distribution
Secure, password-protected digital payslips delivered directly to employees.
Bank Payment Files
Generation of bulk payment files for all major Kenyan banks and M-Pesa.
Year-End Returns
Processing of annual tax certificates (P9) for all employees.
Payroll Audits
Periodic reviews of your payroll history to identify and correct any legacy compliance gaps.
How Do I Get Started with
Kenya Payroll Services?
Moving your payroll to Two Max Group follows a structured process | no surprises, clear timelines.
Discovery Call
A Senior Director responds within 24 hours. We review your headcount, payroll frequency, and current compliance status.
Payroll Audit & Proposal
We review your current payroll records, NSSF accounts, PAYE filings, and contracts before pricing.
Onboarding & Go-Live
Employee data reconciled, statutory registrations confirmed, and payroll activated | typically within 48 hours.
Monthly Payroll Runs
PAYE filed by the 9th. NSSF, SHIF, Housing Levy remitted. Payslips issued. Records retained.
Payroll for every
Kenya employer type
Whether you have one employee or 400, the statutory obligations are identical. We handle the complexity so you don't have to.
Kenya Payroll Across Every Sector
Our clients span major industries, each with distinct payroll complexities, compliance requirements, and funding structures.
Kenya Payroll | FAQs
Questions business leaders ask before outsourcing Kenya payroll.
From the first day any employee is engaged. There is no grace period under the Employment Act, Cap 226. If a director draws remuneration, PAYE applies from the first payment.
Simplify Your Kenya
Payroll Compliance.
Stop worrying about iTax ledgers and statutory deadlines. Let Kenya's most precise payroll team handle your compliance while you focus on growth. A Senior Advisory Director will review your brief and respond within one business day — a tailored payroll proposal based on your actual headcount, payroll frequency, and current compliance status.
Response within 2 business hours · Trusted by Global MNCs & NGOs · Finance Act 2025 Ready
Visit our Advisory Hub in Nairobi
Located at the strategic gateway of Mombasa Road, our headquarters serves as the central node for compliance and HR operations across East Africa.
Mombasa Road, Nairobi