“In the middle of every difficulty lies opportunity.”
– Albert Einstein
Na kwa Kenya, one of those “difficulties” is payroll.
Let’s not even lie
Some employers are still out here handing out salaries via mpesa na word of mouth
No documentation, no records, no payslip
Just vibes and a si pesa iliingia? text
But a payslip isn’t just a formality
It’s a legal requirement, a proof of income, and a protection for both employer and employee
So, kama bado unazikata kwa Notepad or Word document, let’s fix that
What is a Payslip?
A payslip is that sacred document that breaks down someone’s salary
What they earned, what was deducted, and what they actually go home with
It’s not just uliingiziwa 40K
It shows:
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Gross salary
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PAYE (Pay As You Earn)
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NSSF (Social Security)
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SHIF (Social Health Insurance Fund)
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Benefits (e.g. housing, medical, mileage)
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Deductions (e.g. HELB, Sacco, loans)
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Net salary
And in Kenya, providing a payslip isn’t optional
It’s required by law
Why Bother with Payslips?
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Employees need it for loans, visas, or even sherehe planning
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KRA might knock if your math ain't mathing
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Courts don’t listen to stories, they look at records
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And truthfully? It’s just good business. Transparency builds trust
How to Generate a Payslip in Kenya (The Smart Way)
Alright, enough theory. Hapa ni practicals:
1. Get Payroll Basics in Order
Before you even think about generating payslips:
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Register with KRA (Kenya Revenue Authority)
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Register your team with NSSF and SHIF
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Know your employees’ gross salary, allowances, and statutory deductions
2. Calculate Statutory Deductions (Correctly)
Kenya has rules, boss
Don’t just guess deductions, that’s how you end up on Twitter trend #PayrollScammer
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PAYE is calculated using tax brackets (progressive)
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SHIF is a fixed rate depending on income (new system replacing NHIF)
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NSSF = 6% of gross (capped)
You can use the KRA calculator online, but honestly — it’s long
No one has time to do that for 10 employees every month manually
3. Use a Payroll System (Highly Recommended)
If you’re serious about your business, ditch Excel
That spreadsheet with 50 formulas is one mistake away from disaster
A proper payroll software will:
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Automatically calculate tax and deductions
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Generate professional payslips (PDFs)
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Keep records
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Help you file returns
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Reduce errors
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Save you stress
Basically, it’s like having a quiet HR genius that never complains
4. Download or Email the Payslip
Once you process payroll:
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Download payslip (usually in PDF)
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Email to employee or give secure portal access
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Keep a digital archive (in case of audits or disputes)
Simple. Professional. Legal.
Si unajua Kenya kuna mambo ya proof ya payment?
Common Mistakes to Avoid
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Ignoring updated tax rates
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Forgetting to add benefits like housing allowance
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Giving handwritten or text message payslips
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Failing to keep records
The Future is Paperless
Payslips are part of a bigger movement: HR and Payroll Automation
Why struggle when you can automate?
Why live in chaos when systems exist?
Your employees aren’t just showing up for salary
They’re building your vision, one day at a time
Respect their hustle. Respect their paperwork
Issuing a payslip isn’t just admin work
It’s a sign of structure
A badge of professionalism
And most importantly, it’s the law
Call: +254 702 339 699
Email: sales@faidihr.com
Because when it comes to payroll, receipts matter