Persons with disabilities could soon pay less income tax under proposed regulations by the Kenya Revenue Authority (KRA), which also seek to give tax relief to parents and guardians who take care of dependants with severe disabilities.
The draft rules, released on Monday, November 9, provide for a monthly income tax exemption of up to Ksh150,000 for eligible persons with disabilities. This would amount to as much as Ksh1.8 million in exempt income over a year.
However, the full exemption will not apply to everyone. The amount will depend on the type and severity of a person’s disability, with some mild conditions attracting no exemption.
For example, a person who is blind will be entitled to the complete exemption, those with moderate and severe visual impairments will get 30% and 60% exemptions respectively.
Additionally, the suggested exemptions apply to people with speech, physical and mental disabilities, as well as autistic individuals. Those with moderate and severe hearing disabilities will qualify for a 50% exemption.
A parent or guardian taking care of a severely disabled individual will have an extra Ksh10,000 deducted from their total monthly income.
These provisions can be found in the draft Income Tax (Persons With Disabilities, Parents or Guardians Tax Exemptions) Regulations, 2026. According to KRA, these regulations are meant to create a clear and transparent procedure for the awarding of exemptions as per the Persons with Disabilities Act, 2025.
How applicants will qualify
Anyone seeking the tax relief will be required to apply through the National Council for Persons with Disabilities (NCPD).
The application will need to be supported by medical reports, proof of income and a tax compliance certificate.
Under the proposed process, a seven-member committee drawn from KRA, the Council and medical bodies will review applications. The committee may also require applicants to appear before it for assessment.
After the review, the KRA Commissioner-General will make a decision within 30 days.
For parents and guardians seeking the additional Ksh10,000 exemption, only one caregiver will be allowed to apply for each dependant. The applicant must be providing full care to a person who is unable to meet their basic needs independently.
The application will attract a fee of Ksh1,000.
Those who qualify will receive an exemption certificate valid for five years. However, people with permanent disabilities will not be required to renew their certificates or undergo fresh medical assessments.
The proposed regulations will also affect people who currently enjoy tax exemptions under the 2010 rules. Those who do not meet the new requirements will lose their exemptions once the new regulations take effect.
