KRA Proposes New Tax Exemption Rules for Kenyans Living with Disabilities and Their Parents
The Kenya Revenue Authority (KRA) has proposed changes to the rules governing income tax exemptions for persons living with disabilities and parents or guardians responsible for caring for dependants with severe disabilities. The proposed regulations are expected to introduce a new framework for determining eligibility, assessing disability levels and processing applications for tax relief.
The development could bring significant financial implications for thousands of Kenyan families who continue to face the high cost of living while providing care and support to persons with disabilities. For many households, caring for a family member with a disability involves regular medical expenses, specialised treatment, medication, assistive equipment, transport and other essential needs. These responsibilities can place considerable pressure on family incomes, particularly where one parent or guardian has to dedicate much of their time and resources to providing care.
Through the proposed Income Tax (Persons with Disabilities, Parents or Guardians Tax Exemptions) Regulations, 2026, KRA seeks to establish a more structured system for administering the exemptions. The proposals are intended to give effect to provisions contained in the Persons with Disabilities Act, 2025, which recognises tax relief as one of the measures that can support persons with disabilities and the families caring for them.
Under the proposed framework, registered persons with disabilities who earn an income could qualify for a monthly income tax exemption of up to KSh150,000. This translates to a potential exemption of KSh1.8 million annually, although the amount granted would depend on the nature and severity of an individual’s disability.
The proposal means that eligible applicants would not necessarily receive the same level of tax relief. Instead, the regulations introduce different exemption levels based on the degree of impairment. The assessment would consider various categories of disabilities, including visual, hearing, physical, speech and mental impairments, as well as autism-related conditions.
For instance, a person who is blind could qualify for the full exemption, while individuals with moderate or severe visual impairment would receive a proportion of the proposed benefit. The reported framework places moderate visual impairment at 30 per cent and severe visual impairment at 60 per cent. Similar assessment bands would apply to other categories of disabilities, with the final exemption depending on the assessment conducted under the proposed system.
This approach is expected to create a more differentiated process in which the level of tax relief reflects the nature and extent of an applicant’s disability. However, it could also attract scrutiny from disability rights organisations and affected families, particularly over how disability severity will be determined and whether the proposed percentages adequately reflect the financial challenges faced by individuals.
Another important part of the proposed changes concerns parents and guardians who provide full-time care to dependants with severe disabilities. Under the draft regulations, an eligible parent or guardian could receive an additional monthly income tax exemption of KSh10,000.
The proposed relief recognises that the financial responsibilities associated with caring for a person with a severe disability do not end with the needs of the individual. Parents and guardians often have to meet additional expenses while balancing employment, household responsibilities and caregiving duties.
In some families, a parent may have to reduce working hours or leave employment altogether to provide continuous support. Others may spend a significant portion of their monthly income on medical appointments, specialised education, therapy, mobility support and other essential services.
The proposed additional exemption is therefore intended to recognise the economic burden carried by caregivers. However, the draft places specific conditions on who can benefit. Only one parent or guardian who has full responsibility for caring for a qualifying dependant would be eligible to apply.
The dependant must have a severe disability and be completely incapable of meeting their basic needs independently. This means the proposed benefit would not automatically extend to every parent or guardian of a person living with a disability. Applicants would have to demonstrate that they meet the conditions set out in the regulations.
A new application and assessment process
KRA is also proposing a more formal application and assessment process for individuals seeking the exemptions. Applications would be handled through the National Council for Persons with Disabilities, with applicants expected to provide supporting documents to establish their eligibility.
The required documentation would include medical reports, proof of income and a valid tax compliance certificate. These documents would help the relevant authorities establish the applicant’s disability status, financial circumstances and compliance with tax requirements.
The proposed process would also involve a seven-member assessment committee comprising representatives from KRA, the National Council for Persons with Disabilities and relevant medical bodies. The committee would examine applications and could require applicants to undergo an in-person assessment where necessary.
This arrangement is intended to ensure that exemptions are granted through a transparent and verifiable process. By involving medical professionals and disability-related institutions, the authorities would have an opportunity to assess applications using relevant professional expertise.
Following the assessment, the Commissioner-General of KRA would make the final decision on an application within 30 days. This proposed timeline could provide applicants with greater clarity on how long the approval process should take and reduce uncertainty for families seeking relief.
However, the effectiveness of the process will depend on how efficiently applications are handled and whether the responsible institutions have adequate capacity to serve applicants across the country. Families in remote areas, particularly those who may struggle to access specialised medical services, could face difficulties gathering the required documentation.
The proposed KSh1,000 application fee is another issue that could attract attention during public consultations. Although the amount may appear relatively small, it could present an additional expense for low-income households already dealing with the financial demands of disability-related care.
Five-year certificates and special treatment for permanent disabilities
The draft regulations also propose changes to the duration of exemption certificates. Under the proposed framework, successful applicants would receive certificates valid for five years.
This would provide beneficiaries with a defined period during which they could enjoy the approved tax relief without having to repeat the entire application process annually.
However, the proposal makes a distinction for individuals whose disabilities are permanent. Such applicants would not be required to renew their certificates or undergo repeated medical assessments.
The provision could reduce unnecessary administrative procedures for people whose conditions are unlikely to change. It would also help minimise the financial and logistical challenges associated with repeatedly obtaining medical reports and attending assessments.
For families dealing with permanent disabilities, this could be an important improvement. Repeated applications can consume time and resources, particularly when individuals have to travel long distances to access the necessary medical professionals.
The proposal to recognise permanent disabilities without requiring repeated assessments could therefore make the exemption system more convenient and predictable for eligible beneficiaries.
What happens to people already enjoying tax exemptions?
The proposed changes could also affect Kenyans who currently benefit from tax exemptions under the previous regulatory framework introduced in 2010.
According to the proposed rules, individuals who are already enjoying exemptions but fail to meet the new eligibility requirements could lose their benefits once the new regulations take effect.
This is one of the most significant aspects of the proposed changes because it means the introduction of the new framework may not simply involve fresh applications. It could also require existing beneficiaries to demonstrate that they meet the revised conditions.
For some families, the transition could create uncertainty over whether they will continue receiving the tax relief they have depended on. Individuals who have previously been approved may need to examine the new requirements and establish whether their circumstances remain within the proposed eligibility categories.
The transition will therefore require clear communication from KRA and the National Council for Persons with Disabilities. Existing beneficiaries will need adequate information about the changes, the documents required and the steps they should take before the regulations become operational.
The changes are linked to Kenya’s Persons with Disabilities Act, 2025
The proposed regulations are part of the wider implementation of the Persons with Disabilities Act, 2025, which provides a legal framework for protecting the rights and promoting the welfare of persons with disabilities in Kenya.
The law recognises that persons with disabilities should have access to opportunities and support that enable them to participate fully in society. It also introduces provisions covering equality, education, employment, healthcare, accessibility and other important areas.
On taxation, Section 56 provides that persons with disabilities who earn an income may apply for income tax exemptions. It further provides for assessments to determine whether an applicant should receive a full or partial exemption.
Section 57 addresses tax exemptions for parents and guardians responsible for caring for persons certified as having severe disabilities and being incapable of meeting their basic needs.
The proposed regulations are therefore intended to provide the administrative procedures needed to implement these provisions. They seek to explain how applications should be submitted, assessed and approved, as well as the conditions applicants must satisfy.
The implementation of the law is particularly important because the existence of legal provisions alone does not automatically guarantee that affected individuals can access the benefits. Clear regulations are necessary to establish practical procedures and responsibilities for the institutions involved.
Public participation opens another opportunity for Kenyans to give their views
KRA has invited members of the public, professionals and other stakeholders to submit comments and recommendations on the draft regulations before they are finalised.
The public participation process provides an opportunity for persons with disabilities, parents, guardians, advocacy organisations and other interested parties to examine the proposals and raise concerns about provisions that may affect them.
One of the issues likely to attract attention is the proposed monthly exemption of up to KSh150,000 for persons with disabilities. Questions may arise over whether the proposed amount is sufficient and whether the disability-based percentages will provide adequate relief across different categories of impairment.
The additional exemption proposed for parents and guardians could also generate debate, particularly regarding whether the amount sufficiently recognises the financial responsibilities associated with full-time caregiving.
Other issues that stakeholders may consider include the documentation requirements, the application fee, the role of the assessment committee and the possibility of losing existing exemptions under the proposed eligibility framework.
KRA has indicated that submissions should reach the Commissioner-General on or before November 24, 2026. Interested parties can submit their comments through the email address stakeholder.engagement@kra.go.ke or by post to the Commissioner-General, Kenya Revenue Authority, P.O. Box 48240-00100, Nairobi.
The authority is expected to consider the feedback received as it works towards finalising the regulations.
Ultimately, the proposed changes represent an important step in the implementation of Kenya’s disability rights framework. Their success will depend on whether the final regulations provide meaningful financial relief while maintaining a fair, accessible and transparent application process.
For thousands of persons with disabilities and families responsible for their care, the outcome could influence their disposable income and ability to meet everyday needs. The public participation process will therefore be an important opportunity to ensure that the final rules reflect the realities faced by those who stand to benefit.
As the November 24 deadline approaches, affected Kenyans and organisations representing persons with disabilities will have an opportunity to present their views before the proposed regulations are finalised. Until the process is completed and the regulations take effect, the proposals remain subject to review and should not be treated as the final tax exemption rules.
