Kenya’s Revenue Authority has issued a public notice confirming updates to the market interest rate used for fringe benefit tax and the deemed interest rate on certain non-resident loans. The authority clarified that the applicable benchmarks for the first quarter of 2026 remain unchanged from those announced in July 2025.
Kenya’s revenue authority (KRA) released a public notice on 22 January 2026 regarding updates to the market interest rate for fringe benefit tax and the deemed interest rate on specific non-resident loans.
The rates remain unchanged from the rates previously announced on 10 July 2025.
Fringe benefit tax
Effective for January, February and March 2026, the rate has been set at 8%.
Deemed interest rate
The prescribed rate of interest is 8%. This rate applies to the months of January, February, and March 2026. The withholding tax rate of 15% on the deemed interest shall be deducted and paid to the Commissioner within five working days.
Low interest benefit
The prescribed rate of interest is 8%. This rate applies to the months of January, February, March, April, May, and June 2026.
Earlier, the KRA revised market interest rates for fringe benefit tax and the deemed interest rate on specific non-resident loans on 10 July 2025.
