KRA Sets 8% Interest Rate on Staff Loans, Fringe Benefit Tax for July-September

The Kenya Revenue Authority (KRA) has set the market interest rate for fringe benefits and deemed interest rates at 8% for July, August, and September 2026. This rate applies to three tax obligations: Fringe Benefit Tax, Deemed Interest Rate, and Low Interest Rate Benefit. A 15% withholding tax on deemed interest must be paid within five working days. Employees receiving low-interest or interest-free loans from employers will have the financial advantage taxed as a fringe benefit.