“We already sent the driver money” is not a settlement. The money might have paid for loading, funded a night away or advanced part of the driver's earnings. A clear settlement shows the work earned, the terms used, any pay already drawn and the payment still due. The driver and finance should be able to follow the same calculation.
Record the pay arrangement before the journey
Agree what the amount covers. A flat trip fee described as “everything included” should not silently acquire extra allowances. Equally, an arrangement that separately pays night-out allowances needs the nights and amount recorded. Retain the terms that applied when the work happened rather than recalculating old trips with today's rate.
- Flat trip pay: one agreed amount for an eligible completed trip.
- Route pay: the amount for the specific direction and, where agreed, loaded or empty work.
- Distance pay: eligible measured kilometres multiplied by the agreed KES/km rate.
- Allowances or retainer: separately defined amounts with a clear qualifying basis and period.
These describe possible arrangements, not recommended wage levels. The company still needs to meet the employment and payroll requirements that apply to the driver. A route going Nairobi to Marsabit is also a different instruction from Marsabit to Nairobi; make any difference in the compensation explicit.
Link each earning to identifiable work
Start with the driver, vehicle, trip reference, actual work dates and completion record. Check that the same trip has not already been included in another run. If two drivers share the work, document each person's eligible basis rather than assuming a split.
For distance pay, check opening and closing readings for the vehicle that actually covered the leg. Missing or uncertain distance needs review; a planned route length should not quietly become measured mileage. Flat trip pay does not depend on kilometres in the same way, so a missing reading should not automatically erase a valid flat earning.
Resolve loaded and empty return work
If the agreement uses different loaded and empty amounts, check what the return actually carried. A run dispatched empty may pick up a backload. Record that change with the cargo handover and apply the agreed classification instead of leaving the settlement tied to an outdated instruction.
If the expected return load falls through, record the cancellation so that dispatch and finance see the same outcome. The return load planning guide explains the customer, stop and cost checks behind that decision. Freight revenue and the driver's pay are separate amounts; one should not be mistaken for the other.
Keep business expense money outside pay recovery
Review every advance by purpose and actual payment. Company money issued for an authorised loading fee belongs in the expense reconciliation. An advance on the driver's own pay belongs in the compensation record. Record any prior recovery so the same advance cannot be taken again in the next settlement.
Payroll deductions need their own lawful basis and review. Kenya's Employment Act addresses deductions and pay statements in sections 19–21. A configurable recovery limit or an approved software calculation does not establish legal permission to deduct. Check the applicable terms and requirements before applying recovery.
A worked settlement before statutory payroll items
Suppose the documented terms pay KES 7,000 for a loaded outbound run, KES 4,000 for the empty return and KES 1,000 for one qualifying night away. The driver has already received a KES 3,000 pay advance. This hypothetical example assumes that recovery has been verified as applicable and permitted.
- Trip earnings and allowance: 7,000 + 4,000 + 1,000 = KES 12,000.
- Pay already drawn and recoverable in this example: KES 3,000.
- Remaining amount before other payroll items: 12,000 − 3,000 = KES 9,000.
A separate KES 2,500 issued for company loading costs is reconciled as trip expense money; it does not reduce this example's driver earnings. These numbers are not market rates or a complete payslip. The example excludes statutory deductions, base salary and any other employment entitlements that may apply.
Approve the calculation, then record the payment
Have the reviewer check the included trips, rates, allowances and recovery lines. Give the driver a clear breakdown and a way to raise a discrepancy. Keep the reviewer and approval time with the record. If an item is unresolved, show its status and reason instead of making it disappear from the working list.
After the company transfers the money, attach the recipient, paid amount, date and transaction reference or cash acknowledgement. Check that the payment matches the approved balance. A prepared pay run, an approved run and a completed transfer answer different questions.
Keep a record that survives the next rate change
Retain the earning basis, advances and payment evidence with the settlement. A later correction should explain what changed and why. This makes it possible to answer a driver's query without rebuilding the month from chat messages.
Kora supports rate cards, completed-trip earnings, advance review and settlement records. Confirm route-specific pay and flat trip fee availability for your company before use. It records the operator's payment evidence; it does not disburse driver pay or replace statutory payroll processing. Pair the settlement with the trip expense closeso that the driver balance and the journey's spending remain clear.