Last updated: 25 June 2026
Payroll should not be a last-minute rush. A clear monthly checklist helps Kenyan SMEs pay employees correctly, prepare statutory deductions, store records and avoid deadline pressure.
1. Confirm employee master data
Before calculations begin, confirm employee names, KRA PINs, ID numbers, employment status, salary changes, bank details and any new joiners or exits. Payroll errors often start with outdated master data.
2. Confirm earnings and benefits
- Basic salary
- House allowance or consolidated pay
- Overtime, bonuses and commissions
- Taxable benefits
- Unpaid leave or salary adjustments
3. Review statutory and employee deductions
Check PAYE, NSSF, SHA/SHIF, Affordable Housing Levy, HELB, pension, insurance relief, Sacco deductions, salary advances and any other approved employee deductions.
4. Prepare payslips and payroll summaries
Each payslip should be easy to read and should show gross pay, deductions and net pay clearly. The payroll summary should also show employer costs such as employer NSSF, employer Housing Levy and NITA where applicable.
5. Store compliance evidence
Keep payroll reports, statutory schedules, payment confirmations, employee approvals and correspondence in a monthly payroll folder. This makes audits, reconciliations and year-end P9 preparation easier.
6. Use tools, but review before filing
Use the Reworked Net Pay Calculator for quick estimates, but review final payroll before filing. Calculators are useful for planning; actual compliance needs correct employee data and current statutory treatment.
Reworked can help SMEs prepare monthly payroll files, payslips, payroll summaries and compliance reminders. Request payroll support or email info@reworked.co.ke.
Disclaimer: This checklist is general guidance only and does not replace tax, payroll or legal advice.
Employer questions
Monthly payroll checklist questions
A good payroll close combines accurate employee inputs, statutory reviews and evidence that can be retrieved later.
Which monthly payroll deadlines should an employer watch?
Current official guidance places PAYE, NSSF and salaried SHA remittances by the 9th of the following month or contribution cycle. KRA gives Affordable Housing Levy a deadline of the 9th working day after month-end. Confirm the calendar and portal position each month.
What information should be collected before payroll starts?
Collect employee changes, salary and allowance updates, bonuses, commissions, leave adjustments, benefits, approved deductions, new starters, exits and any documents supporting reliefs or exemptions.
Which records should be kept after payroll?
Keep the approved payroll summary, payslips, employee master changes, statutory schedules, portal acknowledgements, payment evidence and relevant employee instructions in an organised monthly payroll file.
Can a small business use a spreadsheet for payroll?
A spreadsheet can support a simple payroll, but the business still needs current rates, controlled inputs, review checks, secure records and a clear filing process. Managed payroll or payroll software may be safer as employee count and complexity grow.