Affordable Payroll Software for SMEs in Kenya – What to Look For
Whatsapp Us!

Affordable Payroll Software for SMEs in Kenya – What to Look For

Thumb
Jul 2nd, 2025

Affordable Payroll Software for SMEs in Kenya – What to Look For

In today’s competitive environment, Small and Medium Enterprises (SMEs) in Kenya are under increasing pressure to operate efficiently while staying compliant with evolving tax and labor regulations. Managing payroll manually can be time-consuming, error-prone, and costly. That’s why more SMEs are turning to affordable payroll software solutions tailored to their size and needs.

But with many options available, how can you choose the right one for your business?

This guide breaks down the key features to look for in affordable payroll software for Kenyan SMEs and introduces a reliable solution built specifically for businesses like yours — FaidiHR.


Why Payroll Software Is a Smart Investment for SMEs

Payroll isn’t just about paying salaries. It involves:

  • Accurate calculation of PAYE, NHIF, NSSF, and HELB deductions

  • Generating statutory reports for KRA and other bodies

  • Creating and distributing payslips

  • Managing leave, attendance, and employee records

For SMEs with limited staff and resources, automating these functions reduces human error, ensures compliance, and saves valuable time.


Key Features to Look For

When choosing payroll software as an SME in Kenya, affordability is crucial — but not at the expense of functionality or compliance.

Here’s what you should look for:

1. Local Compliance

The software should automatically calculate and file:

  • PAYE with KRA iTax

  • NSSF and NHIF deductions

  • P9 and P10 reports

2. Cloud-Based Access

Cloud-based systems let you access payroll data from anywhere, anytime, and eliminate the need for manual backups.

3. Ease of Use

As a small business, you need a system that’s intuitive and doesn’t require advanced technical skills or expensive training.

4. Scalable Pricing

Good payroll software should grow with your business. Look for plans that accommodate small teams and offer upgrades as you scale.

5. Employee Self-Service

Features like payslip downloads, leave applications, and profile updates reduce the administrative burden on your HR or finance team.


Why FaidiHR is Ideal for Kenyan SMEs

FaidiHR is an affordable, cloud-based HR and payroll platform designed specifically for Kenyan businesses. It’s simple, powerful, and trusted by SMEs across various industries.

What You Get with FaidiHR:

  • Automated payroll processing

  • KRA-compliant PAYE and statutory deductions

  • Leave, attendance, and performance management

  • Bank-ready salary files

  • P9 and P10 generation

  • Employee portal for self-service

  • Audit trail for transparency

Affordable Pricing:
FaidiHR offers flexible pricing starting from packages suitable for small teams, with room to scale as your business grows.


Final Thoughts

Choosing the right payroll software is not just a financial decision — it’s a strategic one. For SMEs in Kenya, the right solution should offer:

  • Compliance

  • Simplicity

  • Affordability

  • Support

FaidiHR checks all these boxes and more, helping you streamline payroll operations and focus on growing your business.


Let’s Get You Started

Automate your payroll today with FaidiHR.

Call: +254 702 339 699
Email: sales@faidihr.com
FaidiHR – Helping Kenyan SMEs thrive by automating manual HR and payroll processes.