Calculate your fixed deposit maturity value and interest earned — enter the principal, interest rate, and term, and the calculator applies Kenya's simple-interest convention and 15% withholding tax to show your net payout.
How Is Fixed Deposit Interest Calculated in Kenya?
Fixed deposit interest in Kenya is calculated as simple interest: principal × annual rate × (days held ÷ 365). Kenyan banks do not compound interest within a single fixed-deposit term — the full interest amount is paid out once, at maturity, on the original principal.
Is Fixed Deposit Interest Taxed in Kenya?
Yes. Fixed deposit interest is subject to a 15% withholding tax, deducted by the bank before the interest reaches your account. For resident individuals this withholding tax is final under the Income Tax Act's qualifying-interest rules — the interest does not need to be declared again or taxed further on your annual return.
What Is the Minimum Amount for a Fixed Deposit in Kenya?
Minimum fixed deposit amounts vary by bank, typically from KES 20,000 to KES 100,000. Stanbic and DTB accept deposits from KES 20,000, Family Bank from KES 30,000, Equity, Co-op, I&M, ABSA, and HF Group from KES 50,000, while NCBA and Standard Chartered require KES 100,000 to open a fixed deposit account.
What Happens If I Withdraw a Fixed Deposit Early?
Early withdrawal before maturity forfeits part or all of the agreed interest, and some banks apply an additional penalty charge on top. The exact terms — a reduced rate, a flat penalty, or full loss of interest — are set individually by each bank in the fixed deposit agreement, so confirm the early-withdrawal clause before you deposit funds you might need back sooner.
Simple Interest vs Compound Interest on Fixed Deposits
A single fixed deposit term always earns simple interest on the original principal, not compound interest. Compounding only happens if you choose to roll the matured principal and interest into a new fixed deposit rather than withdrawing it — each new term then earns simple interest on the larger, rolled-over balance.
How much interest will I earn on a fixed deposit in Kenya?
Gross interest equals principal × annual rate ÷ 100 × (days held ÷ 365). A KES 100,000 deposit at 9% for 182 days earns about KES 4,488 in gross interest, before the 15% withholding tax is deducted.
Do I get my fixed deposit interest tax-free in Kenya?
No. Banks deduct a 15% withholding tax from the interest before crediting it to your account. For resident individuals this withholding tax is final, so no further tax is owed on that interest when filing your annual return.
Can I add money to a fixed deposit after opening it?
No. A fixed deposit locks a single lump-sum principal for the agreed term at a fixed rate — to invest more, you open a new fixed deposit or wait until the current one matures and roll over the combined balance.