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% for October, November and December 2026.
In a public notice dated October 22, 2026, KRA said the rates would apply under Sections 12B and 16(2)(ja) of the Income Tax Act. The notice was issued by the Commissioner for Micro and Small Taxpayers.
“For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 9%,” the notice stated. The rate will apply for the three months of October, November and December 2026.
KRA also set the prescribed interest rate for deemed interest at 9% under Section 16(2)(ja) of the Income Tax Act. The rate will apply over the same three-month period.
The authority further stated that withholding tax at a rate of 15% on deemed interest must be deducted and paid to the Commissioner within five working days.
The notice outlines the applicable tax rates for the final quarter of 2026.