Kenyan compliance Kenyan compliance · Payroll

Kenya payroll on Dynamics 365: PAYE, NSSF, SHIF and the Housing Levy.

Kenyan payroll is a stack of statutory deductions that change on their own calendars. Business Central does not ship it. This is how it connects to your ledger, and what we built so you do not maintain the rates yourself.

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The deductions a Kenyan payroll has to handle

Each has its own base, rate or band, and filing channel.

PAYE: banded income tax with personal relief, calculated after allowable deductions
NSSF: tiered contributions under the NSSF Act, with pensionable-earnings limits that step up each February
SHIF: Social Health Insurance Fund contribution, a percentage of gross pay with a minimum
Affordable Housing Levy: a percentage of gross pay from employee and employer
Other: pension and insurance reliefs, benefits in kind, loans and advances, and Helb and trade-union deductions where applicable

The calendar

Statutory deductions are generally remitted by the ninth of the following month, so payroll close and the bank run sit on a tight deadline. Rates, limits and relief amounts change through the Finance Act and NSSF schedules, which is why we keep them in the product rather than in your spreadsheet.

What PayrollFlow 365 does

PayrollFlow 365 is our global, parameter-driven payroll, on Finance & Operations or Business Central, with statutory content for Kenya published and maintained by us.

Earnings, PAYE, statutory deductions and reliefs, updated with legislation
Joiners, leavers and benefits in kind
Approval workflows with segregation of duties
GL posting by dimension, payslips, bank files, remittances and statutory returns
Employee self-service and a payroll role centre on Business Central

Getting it into the ledger cleanly

Payroll is a ledger design problem as much as a calculation problem: one journal per pay run by department and cost centre; separate liability accounts for PAYE, NSSF, SHIF and the levy; reconciliation of each liability to its payment. We design that with finance in the Design phase.

Frequently asked questions

Does Business Central include Kenyan payroll?

No. Business Central does not include Kenyan statutory payroll. PayrollFlow 365 provides it on a global, parameter-driven core, or we integrate the payroll system you already use.

Who keeps the rates up to date?

In PayrollFlow 365, statutory calculations are updated with legislation. Confirm the current table and effective dates with us before each change.

Can payroll run in more than one country?

Yes. PayrollFlow 365 is a global, parameter-driven payroll, so several countries run on one core and post to one ledger. We publish statutory content for Kenya, Nigeria and South Africa and configure other countries' parameters with you.

Can it produce bank files?

Yes. Bank files and remittances are generated per pay run.

General information, not tax or legal advice. Rates, limits and filing rules change; confirm the current position with the Kenya Revenue Authority, the relevant statutory body or your tax adviser before relying on it.

Last reviewed 2026-10-11

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