For July to December 2025, the rate has been reduced to 8% (from 9%), and the low-interest loan benefit rate has dropped to 9% (from 14%).

The Kenya Revenue Authority (KRA) released a public notice on 10 July 2025 regarding updates to the market interest rate for fringe benefit tax and the deemed interest rate on specific non-resident loans.

Effective for July, August, and September 2025, the rate has been reduced from 9% to 8%. The prescribed interest rate for the low-interest loan benefit has been reduced from 14% to 9% for July to December 2025.

The withholding tax at the rate of 15% on the deemed interest shall be deducted and paid to the Commissioner within 5 working days.

Earlier, the KRA revised market interest rates for fringe benefit tax and the deemed interest rate on specific non-resident loans on 8 April 2025.