The Kenya Revenue Authority (KRA) has set the market interest rate for Fringe Benefit Tax and the prescribed interest rate for Deemed Interest at 9 per cent for October, November and December 2026.
In a public notice dated October 22, 2026, KRA said the market interest rate would apply for purposes of Section 12B of the Income Tax Act, which governs Fringe Benefit Tax.
The authority also announced that the prescribed interest rate for Deemed Interest under Section 16(2)(ja) of the Income Tax Act would remain at 9 per cent over the same three-month period.
KRA further reminded taxpayers that withholding tax at a rate of 15 per cent on deemed interest must be deducted and remitted to the Commissioner within five working days.
The notice was issued by the Commissioner for Micro and Small Taxpayers as part of the authority’s tax administration guidelines for the final quarter of 2026.
The announcement provides guidance to employers and other taxpayers on the applicable interest rates for calculating and meeting their tax obligations during the period.
