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Benefits Of Payroll Outsourcing By Businesses In Kenya


Payroll outsourcing is when a business decides to welcome a third party to manage their payroll activities. However, payroll outsourcing is a time-consuming process and most firms understand the hustle involved, hence they have come up with customized payroll services for every firm.

Every business can outsource payroll to increase profitability, enhance growth, and meet compliance obligations. Moreover, this enables them to maintain a certain standard of responsibility to their customers.

Benefits of Payroll outsourcing

  • Cost saving: Payroll outsourcing allows business to spend less money compared to when they do the process by themselves. The resources saved can be directed to other departments to boost their development.
  • Time saving: Outsourcing payroll saves staff time and allows them to concentrate on revenue generating activities.
  • Reduce Paper work: It allows companies to do away with a lot of paper work and adopt electronic methods.
  • Improves security: Outsourcing payroll ensures your confidential information is stored in a single data server. Make sure that your service provider has got the latest cyber-security technologies with the right security measures to safe guard your system against cyber-crime and data loss.
  • Increased productivity: Outsourcing ensures that every task given to an employee is done at the right time to achieve the right result.
  • Assured legal compliance: Payroll outsourcing enables a business to meet deadlines and ensures that the correct deposit is made as per the legal and tax guidelines.
  • Consistency: This applies to companies with business branches in different countries. In this case, they are required to use a trusted service provider to ensure the consistency and security of the company’s data.


To sum up, Payroll outsourcing should be embraced by all types of businesses from startups to established organizations. It's benefits include time-saving, reduced paperwork, improved security, cost-saving, and, increased productivity.

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