KRA Increases Staff Loan Benchmark to 9%
KRA raises staff loan benchmark to 9% for October-December
The Kenya Revenue Authority (KRA) has increased the market interest rate used for Fringe Benefit Tax to 9% for the October to December 2026 quarter.
This rate applies to employers offering below-market loans to staff, directors, or related parties, and is used to calculate the benefit where an employer charges less than the market rate.
Key Implications
- The difference between the rate charged and the benchmark is treated as a benefit enjoyed by the borrower, and the employer is liable for Fringe Benefit Tax on it.
- The tax is charged at 30% of the calculated benefit value and falls due by the 9th day of the month after the benefit is granted.
Source: Nairobi Wire. AI-assisted summary.
