The Kenya Revenue Authority (KRA) has retained the tax rate charged on employee welfare benefits at eight percent for the quarter ending December 2025, marking the first time in five quarters that the taxman has failed to lower the charge in tandem with a reduction in the indicative Central Bank lending rate.
The Central Bank of Kenya (CBK) on October 7, 2025, lowered its benchmark Central Bank Rate to 9.25 percent from 9.50 percent, extending its monetary policy easing cycle that began in August last year and has cumulatively cut the rate by 3.75 percentage points.