The Kenya Revenue Authority (KRA) has announced the new fringe benefits tax and deemed interest tax rates to serve for the next three months between April and June.
In a notice on Tuesday, April 8, the taxman noted that the market interest rate-the rate at which borrowers can obtain funds from lenders-will be 9 per cent for this period as per Section 12b of the Income Tax Act. "For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 9%.
This rate shall be applicable for the three months of April, May and June 2025," part of the notice read.
The Fringe Benefit Tax is payable by every employer in respect of a loan provided to an employee at an interest rate lower than the market rate.
