FBT on staff loans
What a low-interest staff loan costs you in fringe benefit tax this month.
FBT this monthKES 180.00
| Monthly benefit | 600.00 |
|---|---|
| FBT at 30%, paid by the employer | 180.00 |
Market rate 9% for October to December 2026, corporate rate 30%. KRA publishes the market rate each quarter.
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How this works
When you lend to an employee, director or their relative below KRA's market rate, the monthly benefit is the balance × (market rate − your rate) ÷ 12. FBT is that benefit at the 30% corporate rate. The employer pays it, reports it on P10 Sheet D and remits it by the 9th.
Questions people ask
What is the FBT market interest rate in Kenya now?
9% for October to December 2026. KRA publishes the rate each quarter.
How is fringe benefit tax on a staff loan calculated?
The monthly benefit is the loan balance × (market rate − the rate you charge) ÷ 12. FBT is that benefit at the 30% corporate rate, paid by the employer.
When is FBT due?
By the 9th of the following month, reported on the P10 return.