KRA Sets 8% Interest Rate for Fringe Benefits & Deemed Interest Rate

The Kenya Revenue Authority (KRA) has announced an 8% interest rate for fringe benefits and the deemed interest rate for the second half of 2026. This rate will apply for the period of April to June 2026 and will be used to calculate the tax owed on loans provided by employers at rates lower than the market rate. Additionally, a 15% withholding tax on deemed interest will apply during this period.