The Kenya Revenue Authority (KRA) has announced new tax rates for fringe benefits and deemed interest, effective from July to September 2025.

• The market interest rate is set at 8 per cent, applicable for calculating low-interest or interest-free loan benefits.
• Employers must account for benefits on loans below 9 per cent with a 15 per cent withholding tax on deemed interest.
• The new rates apply to loans provided to non-residents and non-cash benefits, affecting foreign-controlled entities operating in Kenya.