For the three-month period ending in December, the Kenya Revenue Authority increased the fringe benefits tax and the deemed interest rate to 9%.
The increase in the two rates from 8% to 9% is due to the recent general increase in interest rates on loans in the country.
The difference between the market interest rate and the actual interest rate paid by an employer for a loan offered to an employee is referred to as the fringe benefits tax.
Meanwhile, the deemed interest rate applies to interest-free borrowings received in Kenya by foreign-controlled entities.
