Running church payroll in Kenya: PAYE, NSSF, and SHIF explained
Why churches need proper payroll
If your church employs a pastor, secretary, caretaker, or any other staff member on a salary, you are an employer under Kenyan law. That means you are required to deduct PAYE (income tax), NSSF (pension), and SHIF (health insurance) from every salary and remit them to the relevant authorities.
Getting this wrong has consequences: KRA penalties for late or incorrect PAYE, NSSF surcharges, and unhappy staff who discover their statutory contributions were never remitted.
The three statutory deductions
How Shiriki handles it
On the Kanisa plan and above, the payroll module calculates all three deductions automatically each month based on each staff member’s gross salary. It generates a payslip showing gross pay, each deduction, and net pay. Your treasurer reviews and approves the payroll, then disburses salaries — and has a clear record for the annual P9 filing.
A note on statutory rates
Kenyan statutory rates are updated periodically by the government. Shiriki tracks the current gazette rates, but your church should verify rates against the latest KRA and NSSF publications before the first payroll run. The payroll module is gated behind the ENABLE_PAYROLL feature flag until rates are confirmed.
Product lead at Shiriki. Writes about how technology can serve the local church without getting in the way.
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