The Kenya Revenue Authority has set an 8 per cent interest rate for fringe benefits and deemed interest calculations from July through September 2026.
The Kenya Revenue Authority announced on July 8 that the Market Interest Rate, Deemed Interest Rate, and Low Interest Benefit prescribed rate will be 8 per cent for the applicable periods in 2026.
This rate applies to the Fringe Benefit Tax for July, August and September. It also covers the Deemed Interest Rate used for low-interest or interest-free loans to employees and directors.
A 15 per cent withholding tax on the deemed interest must be paid to the KRA Commissioner within five working days. The Low Interest Benefit rate of 8 per cent extends through December 2026.
The measures affect how employers calculate taxable benefits on staff loans and other perks.
