Kenya Reduces Market and Deemed Interest Rates for Fringe Benefit Tax and Non-Resident Loans and Maintains Interest Rate for Low Interest Loans

The Kenya Revenue Authority has issued a public notice on the market interest rate for fringe benefit tax purposes and the deemed interest rate for certain non-resident loans for the months of July, August, and September 2026, which has been reduced to 8% from the 10% rate for the previous 3-month period. The notice also provides the prescribed interest rate for the low interest (loan) benefit, which is maintained at 8% for the period July to December 2026

Fringe benefit tax is payable by e…