Finance

Payroll Software Kenya: PAYE, NSSF, SHIF and Housing Levy Automated

K By Kev 10 June 2026 11 min read
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Payroll software in Kenya calculates every statutory deduction, PAYE, NSSF, SHIF and the Affordable Housing Levy, produces compliant payslips, and pays staff, all automatically. Running payroll by hand means applying the KRA bands and personal relief, the SHIF percentage, NSSF tiers and the 1.5% levy for every employee, every month, and one slip-up over-deducts or under-remits. Veira automates the lot, pays staff straight to M-Pesa or bank, and keeps audit-ready records, from KES 2,999 a month.

Key takeaways
  • Payroll software automates PAYE, NSSF, SHIF and the 1.5% Housing Levy
  • Produces compliant payslips and pays staff by M-Pesa or bank
  • Tracks remittance deadlines so you avoid KRA penalties
  • Veira applies current Kenyan rates, from KES 2,999/month
KES 2,999
eTIMS plan / month
KES 5,999
Growth plan / month
KES 9,999
Pro plan / month
On this page
  1. What payroll software does and why it matters in Kenya
  2. What payroll software should do for a Kenyan employer
  3. Veira vs Manual payroll
  4. eTIMS, M-Pesa and pricing with Veira
  5. A Kenyan business gets the result that matters
  6. Why Veira is built for Kenyan businesses
  7. Frequently asked questions

What payroll software does and why it matters in Kenya

Payroll software takes a gross salary and works out everything that follows: PAYE on the KRA bands less the KES 2,400 personal relief, SHIF at 2.75% of gross, NSSF on the tiered structure, and the Housing Levy at 1.5%. It then produces a payslip showing net pay and totals each body is owed, and remits or schedules payment.

For Kenyan employers the pains are calculation errors (forgetting the relief, using old NHIF instead of SHIF), missed remittance deadlines, and the sheer time of doing it by hand for several staff. Payroll software removes all three: the maths is automatic, the deadlines are tracked, and a whole payroll runs in minutes.

It also creates an asset. Consistent, stored payroll is exactly what lenders ask for, so clean payroll is both compliance and a financing record.

What payroll software should do for a Kenyan employer

Judge any option against these capabilities before you commit.

  1. 1

    PAYE on the current bands

    Apply the KRA bands and the KES 2,400 personal relief automatically, so PAYE is correct for every salary with no manual maths.

  2. 2

    SHIF, NSSF and Housing Levy

    Compute SHIF at 2.75% of gross, the tiered NSSF contribution, and the 1.5% Housing Levy for each employee automatically.

  3. 3

    Compliant payslips

    Produce a payslip per employee showing gross, each deduction and net pay, that staff trust and you can store.

  4. 4

    Pay staff by M-Pesa or bank

    Pay salaries straight to M-Pesa or bank from the same system, so payroll and payment are one step.

  5. 5

    Deadline tracking

    Know what to remit to KRA, SHIF, NSSF and the housing fund and by when, so you never miss the 9th-of-the-month and other deadlines.

  6. 6

    Audit-ready history

    Keep a consistent payroll history you can export in minutes for KRA or a loan application.

Veira vs Manual payroll

VeiraManual payroll
PAYE + reliefAutomaticBy hand, error-prone
SHIF / NSSF / Housing LevyAutomaticManual
PayslipsGeneratedHand-made or none
Pay by M-Pesa / bankBuilt inSeparate step
Deadline trackingYesMemory
Starting priceKES 2,999 / monthTime cost + errors

eTIMS, M-Pesa and pricing with Veira

How Veira handles eTIMS

Veira is KRA eTIMS certified and listed on kra.go.ke. Every sale issues a compliant invoice automatically, online or offline, with item codes and tax types managed, so your VAT reconciles with no manual matching.

How Veira handles M-Pesa

Veira accepts M-Pesa Till, Paybill, Pochi la Biashara and card, and reconciles each payment to the transaction, so your records always balance and there is no end-of-day guesswork.

Pricing

Veira is KES 2,999/month (eTIMS), KES 5,999/month (Growth) and KES 9,999/month (Pro), often with a free terminal. For most Kenyan businesses the system pays for itself within a month or two through sealed leaks, saved time and avoided penalties.

Mistake: buying disconnected tools

Separate systems that do not talk to each other leak half the benefit and never reconcile. One connected platform that covers selling, payments, eTIMS and reporting is what actually delivers the gains.

Mistake: choosing on price or brand alone

The cheapest or best-known tool that lacks KRA eTIMS certification, M-Pesa reconciliation or offline mode leaves real gaps. Weigh the fee against what the system prevents and reveals, and always confirm eTIMS certification.

A Kenyan business gets the result that matters

Worked example

A restaurant in Nairobi with five staff worked out payroll by hand and twice over-deducted PAYE on its lowest earners by forgetting the personal relief. Remittance deadlines were a monthly worry.

On payroll software, each gross salary produced a correct payslip with PAYE, SHIF, NSSF and the Housing Levy, staff were paid by M-Pesa, and the system tracked every remittance deadline.

Payroll dropped from an afternoon to minutes, errors stopped, and when the owner sought working capital, she exported a clean twelve-month payroll history the lender accepted.

Business impact

An unmonitored till is the quietest leak in Kenyan retail: small shortfalls and unrecorded sales add up long before anyone thinks to look.

Veira gives each staff member their own login and a full audit trail, so every sale, void and refund is tied to a name.

Why Veira is built for Kenyan businesses

Veira brings selling, M-Pesa and card payments, KRA eTIMS, inventory and reporting into one app, so every transaction updates everything at once and your books, tax and operations come from one source of truth. It is built for Kenya: M-Pesa-native, offline-capable for unreliable connections, and KRA eTIMS certified.

For the owner that means automatic compliance, fewer leaks, and the numbers that matter answered from a phone, from KES 2,999 a month with a free terminal. Whether you run one location or many, the same system scales with you.

Frequently asked questions

What does payroll software do in Kenya?
Payroll software calculates PAYE (on the KRA bands, less personal relief), SHIF, NSSF and the Housing Levy for every employee, produces compliant payslips, pays staff by M-Pesa or bank, and tracks remittance deadlines, replacing error-prone manual calculation.
Does it calculate SHIF and the Housing Levy?
Yes. Veira computes SHIF at 2.75% of gross, the tiered NSSF contribution, and the 1.5% Affordable Housing Levy automatically, alongside PAYE, so every deduction on the payslip is correct.
Can payroll software pay staff by M-Pesa?
Veira pays salaries straight to M-Pesa or bank from the same system, so calculating payroll and paying staff are one step rather than two disconnected ones.
How much does payroll software cost in Kenya?
Veira starts at KES 2,999 per month (eTIMS plan), with Growth at KES 5,999 and Pro at KES 9,999, often with a free terminal. The time saved and errors avoided each month usually cover the cost.
Does it help me meet KRA deadlines?
Yes. Veira tracks what you must remit to KRA, SHIF, NSSF and the housing fund and by when, so you avoid the penalties that come from missing the 9th-of-the-month PAYE deadline and others.
Is it built for current Kenyan rates?
Veira applies the current KRA PAYE bands, the KES 2,400 personal relief, SHIF at 2.75% and the 1.5% Housing Levy, and is updated when rates change, so your payroll stays compliant.

Payroll software turns an error-prone afternoon into a few accurate minutes. Veira automates PAYE, NSSF, SHIF and the Housing Levy, pays staff by M-Pesa, and keeps audit-ready records from KES 2,999 a month. Book a free demo and run payroll with confidence.

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