Lynn HR provides payroll outsourcing services in Kenya for employers who want payroll done correctly every month without tying up their own staff. We process your payroll, produce payslips and bank or M-Pesa schedules, and calculate, file and remit PAYE, NSSF, SHIF, the Affordable Housing Levy and other deductions on time.
Payroll in Kenya has become more complex. NSSF rates and limits have changed in phases, SHIF replaced NHIF, the Housing Levy was introduced and the tax treatment of these deductions has changed. Payroll outsourcing gives you a team whose job is to keep up with these changes and apply them correctly.
What our payroll outsourcing includes
We run the full monthly payroll cycle from inputs to remittances. You approve the payroll before anything is paid, and you receive clear reports for your finance team and auditors.
Salary information is handled confidentially by the people processing your payroll and is never shared outside the engagement.
- Monthly payroll processing and payslips
- Bank and M-Pesa payment schedules
- PAYE calculation and KRA iTax P10 returns
- NSSF, SHIF and Housing Levy remittances
- NITA levy, HELB and other deductions
- Overtime, allowances, bonuses and benefits
- Year-end P9 forms for employees
- Payroll reports for management and audit
Kenya's statutory deductions, handled correctly
Every Kenyan employer must deduct PAYE income tax, NSSF pension contributions, the Social Health Insurance Fund contribution and the Affordable Housing Levy from salaries, and pay the employer's share of NSSF and the Housing Levy. Most of these are due by the 9th of the following month, and late or incorrect payments attract penalties and interest.
Our payroll outsourcing team applies the current rates and limits, including the latest NSSF tiers, and adjusts your payroll when the law changes. You can check an individual salary using our free net pay calculator on the HR resources page.
How payroll outsourcing works
Payroll review
We review your current payroll, pay elements, deductions and remittance history, and flag any errors or arrears.
Set-up
We set up employee records, pay rules and approval steps, and agree monthly deadlines for inputs such as overtime and new joiners.
Monthly processing
You send the month's changes, we process payroll and send it to you for approval before payment.
Payments and remittances
We produce payslips and payment schedules, file returns and remit statutory deductions before the deadlines.
Reporting and year-end
You receive monthly payroll reports, and we prepare P9 forms and year-end reconciliations.
Is payroll outsourcing right for you?
Outsourcing payroll makes sense if payroll takes up too much of your finance team's time, if you have received KRA or NSSF penalties, if salary confidentiality is a concern, or if you are growing and your spreadsheet no longer copes.
Payroll outsourcing is also a natural fit with our other services. Many clients combine it with outsourced HR or staff outsourcing so that contracts, leave records and payroll all come from one team.
Choosing a payroll outsourcing provider in Kenya
The right payroll outsourcing provider should do more than run numbers. Check that they apply current rates automatically, send payroll for your approval before payment, share proof of statutory remittances each month, and have a clear process for confidentiality and data protection under Kenya's Data Protection Act.
Lynn HR's payroll outsourcing is backed by HR expertise. When a payroll question is really an HR question, such as a disputed deduction, unpaid leave or terminal dues, our team can advise on the employment side as well.
- Current statutory rates applied every month
- Payroll approval before salaries are paid
- Proof of remittances for your records
- Confidential handling of salary data
Right for you if: Payroll takes too much time, keeps going wrong, has attracted penalties, or must be handled confidentially outside the business.
Payroll Outsourcing FAQs
What is payroll outsourcing?
Payroll outsourcing means an external provider processes your payroll, produces payslips, and calculates, files and remits statutory deductions on your behalf, while you approve the payroll before salaries are paid.
Which statutory deductions apply in Kenya?
Employers deduct PAYE, NSSF, SHIF and the Affordable Housing Levy, and pay the employer's share of NSSF and the Housing Levy plus the NITA levy. HELB and other deductions apply where relevant.
When are PAYE and statutory deductions due in Kenya?
PAYE, NSSF, SHIF and the Housing Levy are due by the 9th of the month after the payroll month.
Is our salary data safe with an outsourced payroll provider?
Yes. Only the people processing your payroll can access salary information, and it is used solely to run your payroll and meet your statutory obligations.
Can you fix past payroll errors?
Yes. As part of our payroll review we identify under- or over-deductions and help you correct them with the relevant authorities.
Ready to talk about payroll outsourcing?
Book a free consultation on WhatsApp or by phone. We'll understand what you need and explain how we would help.