Tighter regulation spurs ERP adoption in Kenya

A stricter focus on regulatory compliance and corporate governance throughout Africa - including Kenya is driving demand for enterprise resource planning, human resources, and payroll software across the continent.

Nikki Summers, Sage Pastel's East Africa Regional Manager adds that lawmakers and regulators in Kenya and other parts of the continent are seeking to make their economies more competitive by aligning them with international accounting, labour and corporate governance standards.

Summers was speaking ahead of Sage Evolution ERP Day Kenya on 19 June, where Sage Evolution ERP and Sage HR Africa will present the latest innovations in their software. "Kenyan businesses of all sizes are being put under significant pressure to improve financial controls and regulatory compliance," says Summers. "As a result, we're seeing demand grow for business software among start-ups as well as for existing companies that have not yet automated their processes or whose technology is outdated." 

There is an especially large move towards automation of the HR and payroll functions, adds Gerhard Hartman, Head of Sage HR Africa. Organisations in the private and public sector recognise that they can no longer rely on manual payroll and taxation systems to keep up with regulatory demands and the growing complexity of their payrolls. "Moving to automated payroll software helps them to ensure accurate calculations and keeps them up to date with the latest legislative changes.

By automating payroll and HR processes, Kenyan companies can save time, work more efficiently and focus on growing their businesses rather than on doing manual paperwork," Hartman says. 

Without robust payroll systems and processes, companies cannot meet regulatory requirements such as remitting various payroll taxes and levies in a timely manner. And as the workforce and the business grows, so does the legislative and regulatory burden as well as the amount of administration associated with the payroll and HR function.

Sage HR Africa is committed to providing business solutions that are tailored to the needs of the Kenyan market, adds Hartman. The company is at the forefront of HR and payroll legislative changes in the country and will continue to update its solutions for the latest laws and regulations in conjunction with government and local authorities. Regular software updates ensure users always process on the latest software and legislative version.