Your Loan Data
Fringe Benefit Tax Calculator - Kenya
| Fringe Benefit Tax, Market Lending Rates | |
|---|---|
| Month | Interest Rate (p.a) |
| August 2024 | 16% |
| September 2024 | 16% |
| October 2024 | 16% |
| November 2024 | 16% |
| December 2024 | 16% |
| January 2025 | 14% |
| February 2025 | 14% |
| March 2025 | 14% |
| April 2025 | 9% |
| May 2025 | 9% |
| June 2025 | 9% |
| July 2025 | 9% |
Low Interest Benefit
Low Interest Benefit occurs when an employer extends a loan to an employee at an interest rate lower than the prescribed interest rate (market lending rate) as a benefit of employment. See PAYE guide 2017 for more details
Fringe Benefit Tax
Low interest benefit is considered as fringe benefit extended to an employee and is taxable at a rate of 30%. The actual benefit (savings that employee makes) is what is chargeable and not the loan or installment.
The prescribed rate of interest is based on the market lending rates as the Commissioner may prescribe from time to time. These are typically lower than bank lending rates
The fringe benefit tax is calculated separately from the PAYE calculations and filed on its on sheet in the P10 Returns Excel File.
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