Fringe Benefit Tax and Deemed Interest

Rate Fringe Benefit Tax

For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 8%.

This rate will be applicable for three months i.e.October, November and December 2018.


Deemed Interest Rate

For purposes of section 16(5), the prescribed rate of interest is 8%.

This is applicable for the months of October, November and December 2018.

Withholding tax rate of 15% on the deemed interest shall be deducted and paid to the Commissioner by 20th of the month following the month of computation.


Commissioner of Domestic Taxes



Taxpayers are notified that KRA will not accept responsibility for payments not received, credited and validated in the relevant Kenya Revenue Authority accounts Contact Centre: +254 (020) 4 999 999, +254 (0711) 099 999, Email: Complaints & Information Center: +254 (0) 20 281 7700 (Hotline),Email:




Fringe Benefit Tax and Deemed Interest