Employee Management

5 Hidden Benefits of Outsourcing Payroll in Kenya


For most businesses, payroll processing is difficult and it takes a lot of time and outsourcing payroll in Kenya can be an easier option.

Employees are the greatest assets of your organization. Therefore, paying them on time is of utmost importance as it keeps them happy and satisfied.

Some companies prefer to handle payroll functions in house, either manually or use of payroll software.

However, other businesses have come to prefer outsourcing payroll in Kenya using professional payroll providers. Below are some reasons why you should consider outsourcing your payroll.

Benefits of Outsourcing Payroll

  • Saving time and cost

Payroll processing is a time-consuming process in your business. It requires lots of attention to detail so as to avoid payroll errors.

The process takes precious time that could otherwise be spent on more pressing matters, for example, increasing productivity and serving customers.

By outsourcing payroll in Kenya employees and managers can focus on their core business and tasks.


  • Securing information

In-house payroll processing is complex and it comes with lots of risks even with trusted partners, for instance, identity theft or interfere of organization records for personal gains.

Also, they use cutting edge encryption technology to ensure your information is in good hands. In addition, the majority of the payroll providers use electronic payment methods so that when an error occurs, they can easily be traced and money recovered.


  • Avoiding Penalties

Employment regulations , compliance requirements, and tax legislations are complex and prone to change from time to time.

Outsourcing payroll in Kenya leaves all these activities to the experts reducing the chance of mistakes being made in areas that could result in penalties and fines. For example, filing of the annual taxes and statutory monthly deductions.


  • Offering Direct deposit

Employees want a direct deposit and not having to make a trip to the bank is convenient for them.

Most importantly, for business owners, direct deposit eliminates error-prone and time-consuming paper processes.

It also reduces the risk of any fraudulent activities. Above all, there is confidentiality when you use using a direct deposit as your account number remains hidden to your payroll provider.

  • Flexibility

Most payroll providers have a team of software developers that are tasked with advancing and maintaining the software.

They make sure they meet your unique business needs. They can customize some features according to your company requirements and needs. 


Final Thoughts.

To sum up, outsourcing payroll is a good move as it will improve your business and provide peace of mind. It saves you money and reduces compliance risk helping you deliver a good payroll experience to your employees.

Still interested? Read NOW! On how to outsource a payroll software or why an affordable payroll software would be ideal for your business.

Great insights, Delivered weekly

Subscription implies consent to our Privacy

Related Articles

HRM and Payroll Software

A Fresh New User Interface


Nelius Gachoka

You might be wondering what Workpay 2.0 is all about. It’s our fresh new look system, it’s our promise for simplicity. Our cool design team drew up some designs for our new look, we added some color, some vibrancy, and engineering simplified the processes.

Compliance and Statutory

Employers are required to adhere to New NSSF Rates


Edwin Mwangi

A lot of employers in Kenya have been making inquiries to know if and when the new NSSF rates take effect. This article addresses the questions and gives a background of how that came to be. Old NSSF Act, 1965  Remittance of National Social Security Fund (NSSF) contributions in Kenya was for a period of […]