As Kenya’s tax and social health landscape evolves, staying compliant is no longer just about crunching numbers—it’s about embracing automation. With the rollout of the Social Health Insurance Fund (SHIF) alongside PAYE and NSSF/NHIF obligations, many employers are realizing that manual payroll is a fast track to costly errors and penalties.
The solution? Automating statutory deductions through reliable, local payroll software.
The 2025 Payroll Landscape in Kenya
By 2025, every registered employer in Kenya must deduct and remit:
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PAYE (Pay As You Earn) – Income tax on employee salaries
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NSSF – Retirement contributions under Tier I & II
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NHIF – Transitioning into SHIF with new contribution models
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SHIF (Social Health Insurance Fund) – Introduced under the Social Health Insurance Act, SHIF replaces NHIF and focuses on universal healthcare with tiered contributions
This makes the payroll process more layered, and manually tracking these changes opens doors to compliance risks.
Why Automation Matters Now More Than Ever
1. Accurate Calculations, Every Time
Automated payroll software instantly calculates PAYE, NHIF/SHIF, and NSSF based on the latest regulations. No spreadsheets, no guesswork.
2. Statutory Updates in Real Time
Legislation evolves. A good payroll system auto-updates with new SHIF rates, PAYE brackets, and remittance deadlines—so you’re always a step ahead.
3. Bulk eSlip Generation & Remittance
No more manual uploads. Generate compliant payslips, create eSlips for KRA, NSSF, and SHIF, and remit payments with ease—saving time and preventing penalties.
4. Employee Visibility & Transparency
Employees can view their deductions and contributions via secure portals—building trust and reducing back-office HR questions.
5. Peace of Mind During Audits
Automated systems keep digital records of every remittance and payslip, making KRA or NHIF audits less intimidating and more straightforward.
FaidiHR: Your Compliance Co-Pilot
FaidiHR is built for Kenyan businesses navigating the 2025 compliance wave. Our platform offers:
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Full PAYE, NHIF & SHIF automation
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Auto-generated eSlips and compliance reports
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Instant payroll updates in line with KRA & MoH guidelines
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Secure, cloud-based access for HR and employees
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Seamless audit trails and monthly summaries
Take control of your compliance today.
Call: 254 702 339 699
Email: sales@faidihr.com
Let FaidiHR handle the complexity, while you focus on growing your business.