General

Should You Outsource Payroll or Use HR Software? 🤔

Introduction


When it comes to paying your employees accurately and on time, businesses face a critical decision: Do you outsource payroll to an external firm, or invest in an in-house HR and payroll system like HimaHR?

Let’s break it down

Why Businesses Outsource Payroll

Outsourcing payroll can feel like a dream. You hand over employee details, pay a monthly fee, and rest easy. No stress about accurate calculating deductions, worrying about ever-changing statutory rates, or filing on time.

That’s why many businesses go this route, especially when they don’t have a dedicated HR or finance team. It works well if your only need is "pay and forget."

But that convenience comes at a cost.

So Why Choose Payroll Software Like HimaHR?

Here’s why more and more local businesses are switching to HimaHR and similar HR software for payroll management and why you should switch too:

  1. It’s Cheaper in the Long Run

    Outsourcing firms charge a premium for their services. With HimaHR, you pay one flat monthly fee and process unlimited payrolls. That makes a huge difference for growing teams whether you’re scaling your retail staff in Nakuru or adding new hires in Dar es Salaam.

  2. Real-Time Statutory Compliance

    Keeping up with PAYE, NSSF, SHIF, AHL, or LST updates can be exhausting. Outsourcing means you trust someone else to stay updated and hope they do it right.

    With HimaHR:

    • Statutory rates are updated within a day as authorities announce changes and you have visibility of the rates used to calculate deductions directly from the system.
    • Calculations are handled automatically; no excel formulas, no guesswork.
    • Filing-ready reports are generated for each statutory deduction.

    Whether you’re reporting to KRA, TRA, URA, RRA, or ZRA, you’re covered on HimaHR!

  3. You Get More Than Just Payroll

    Here’s where software wins big. With HimaHR, payroll is just one part of a larger, integrated HR suite:

    • Leave automation – Employees apply for leave online, managers approve with a click
    • Recruitment module – Manage recruitment process in one place.
    • Employee records – Store contracts, IDs, certifications securely.
    • Self-service portal – Staff can download payslips, P9s update info, or view leave balances and apply for leaves and a whole host of other functionalities!

    This kind of automation saves time, cuts down on back-and-forth emails, and keeps everything clean and centralized.

  4. You Stay in Control

    When you outsource payroll, mistakes mean delays and you’re stuck waiting for someone else to fix them. With HimaHR, your team runs payroll on your timeline. You can make corrections, and process instantly and at any time of day or night.

    It is perfect for operations with multiple locations—from your main branch in Nairobi to your field office in Juba.

  5. No More Manual Filing

    Generating PAYE or NSSF returns for 500 employees? Done in seconds. Need SACCO schedules or SHIF files? HimaHR generates all of them, ready to be uploaded to KRA’s iTax Portal, ByProduct File uploaded to NSSF, SHIF ePayment Portal, URA’s eTax portal etc.

    HimHR even provides pre-formatted for salary disbursement on bank portals.

So, Should You Outsource or Use a System?

If you have no internal capacity at all, outsourcing may give you breathing room.

But if you want to save money, stay compliant, and gain full visibility at a click over your HR processes, a system like HimaHR is the smarter investment. You don’t just get payroll—you get payroll and a full HR command centre built for East African businesses!

Final Thought

You don’t have to choose between affordability and professionalism. HimaHR offers both—plus the control and convenience your business needs to thrive.




Attallah CGL

Related Blogs