Fringe Benefit Tax Rates
KRA’s quarterly rates, current and past
Switch tool. Now onFringe Benefit Tax Rates
KRA has not published the rates for October to December 2026 yet. Below are the last published rates, for July to September 2026. Check KRA's notice before you use them on a return.
July to September 2026
KRA notice, 14 July 2026(opens in a new tab)Market interest rate (s.12B)
8%
A loan below this rate carries a fringe benefit.
Deemed interest (s.16(2)(ja))
8%
Withholding tax 15% on the deemed interest.
Low interest benefit (s.5(2A))
8%
Applies July to December 2026.
Fringe benefit tax
30%
Charged on the value of the benefit.
Rates history
| Period | Market | Deemed | Low interest | Notice |
|---|---|---|---|---|
| July to September 2026Latest | 8% | 8% | 8% | 14 Jul 2026(opens in a new tab) |
| April to June 2026 | 8% | 8% | — | 10 Apr 2026(opens in a new tab) |
| January to March 2026 | 8% | 8% | 8% | 22 Jan 2026(opens in a new tab) |
| October to December 2025 | 8% | 8% | — | 21 Oct 2025(opens in a new tab) |
| July to September 2025 | 8% | 8% | 9% | 10 Jul 2025(opens in a new tab) |
| April to June 2025 | 9% | 9% | — | 8 Apr 2025(opens in a new tab) |
| January to March 2025 | 13% | 13% | 14% | 17 Jan 2025(opens in a new tab) |
Each rate is copied from KRA’s notice, linked on its row, so you can check it there. Notices before January 2025, and the next one when it comes out, are on KRA's public notices page(opens in a new tab).
What each rate does
The market interest rate decides when a loan to an employee or a director counts as a fringe benefit. Lend below it and the difference is a benefit, and the employer pays fringe benefit tax of 30% on it.
The prescribed rate for deemed interest applies to interest an employee earns on money lent to the employer. Withholding tax comes off it and reaches the Commissioner within 5 working days.
The low interest benefit rate is published twice a year, and applies to a loan given below it.
Filing and penalties
- Declared and paid with the monthly PAYE return, by the 9th of the following month.
- Filing late: the higher of 25% of the tax due or Ksh 10,000.
- Paying late: 5% of the unpaid tax.
- Interest: 1% a month on the unpaid tax until it is paid.