The Kenya Revenue Authority (KRA) has announced that the market interest rate applicable under Section 12B of the Income Tax Act has been set at 8 percent for the three-month period covering July, August and September 2026.
In a notice, KRA said the rate will apply for the purposes of computing tax obligations under the relevant provisions of the Income Tax Act.
The authority also announced that, for purposes of Section 16(2)(ja) of the Income Tax Act, the prescribed rate of interest has been set at 8 percent for July, August and September 2026.
KRA noted that a 15 percent withholding tax on the deemed interest must be deducted and remitted to the Commissioner within five working days.
In addition, the tax authority said that for purposes of Section 5(2A) of the Income Tax Act, the prescribed interest rate will also remain at 8 percent.
Unlike the other provisions, this rate will apply for a longer period, covering July, August, September, October, November and December 2026.
The announcement provides guidance to taxpayers on the applicable prescribed interest rates to be used in determining tax obligations under the specified sections of the Income Tax Act.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
