The Kenya Revenue Authority (KRA) has announced that the market interest rate for Fringe Benefit Tax (FBT) will remain at 8% for the final quarter of 2025, covering October, November, and December. This rate is used to determine the taxable value of certain non-cash employee benefits.

• The 8% rate will be applied by employers in calculating FBT on benefits such as low-interest loans, company vehicles, and employer-provided housing.
• The KRA, under the Income Tax Act, has confirmed that employers are responsible for calculating and paying the corresponding tax on these fringe benefits.
• A 15% withholding tax on the deemed interest must also be deducted and remitted to the Commissioner within 5 working days.