The Kenya Revenue Authority (KRA) has proposed new tax exemption rules that could significantly reduce the tax burden on persons with disabilities and parents or guardians responsible for their care.
Under the proposed Income Tax (Persons With Disabilities, Parents or Guardians Tax Exemptions) Regulations, 2026, registered persons with disabilities earning an income could qualify for monthly tax exemptions of up to KSh150,000.
How Much Tax Relief Could Persons With Disabilities Receive?
The proposed exemption translates to a maximum annual tax relief of KSh1.8 million. However, the amount would depend on the severity of the disability.
According to the proposed regulations, people with mild disabilities would not qualify for the exemption, while those with moderate and severe disabilities would receive different levels of tax relief.
KRA’s Proposed Tax Exemption Rates
The proposals outline different exemption levels based on the nature and severity of a disability.
For example, a person who is blind would qualify for the full exemption, while individuals with moderate and severe visual impairment would receive 30% and 60% exemptions, respectively.
The proposed framework seeks to provide tax relief based on the level of disability, with eligible individuals benefiting from exemptions of up to KSh150,000 per month.
What the Proposed KRA Tax Rules Mean for Kenyans
If adopted, the regulations could reduce the amount of taxable income for eligible persons with disabilities and ease some of the financial pressure associated with disability-related needs.
The proposals also cover parents and guardians caring for persons with disabilities, although the specific eligibility requirements and applicable exemption levels should be confirmed from the full regulations.
The rules are proposed regulations and should not be treated as already implemented.
