Disability tax exemption: KRA draft proposes KSh150,000 monthly cap

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A new disability tax exemption system would let people with disabilities earn up to KSh150,000 a month tax-free under draft regulations KRA published for public comment on Monday, 9 November 2026. The draft Income Tax (Persons with Disabilities, Parents or Guardians Tax Exemptions) Regulations, 2026 would also give parents or guardians caring for a person with a severe disability an extra KSh10,000 a month of tax-free income. The public has until 24 November 2026 to comment.

How the disability tax exemption would be graded

The draft regulations let the Commissioner exempt income wholly or partly, depending on how severe the disability is, up to KSh150,000 a month (KSh1.8 million a year). The First Schedule sets the share of that limit each person would get:

If adopted, the rules would replace the Persons with Disabilities (Income Tax Deductions and Exemptions) Order, 2010. Certificates issued under the 2010 Order would stay valid until they expire. After that, holders would apply for renewal under the new rules.

Disability tax exemption for parents and guardians

A parent or guardian who has full care and custody of a person certified with a severe disability, and who earns an income, could apply for an exemption of KSh10,000 a month on top of the income that is normally exempt. Only one parent or guardian could claim for each person. A carer looking after more than one person with a severe disability would apply to the Cabinet Secretary for both to be considered. Parent and guardian applications would carry a non-refundable processing fee of KSh1,000.

How disability tax exemption applications would work

Applicants would apply on a prescribed form through the National Council for Persons with Disabilities. The council would check the form and send complete ones to an income tax exemption assessment committee. The committee would meet at least once a quarter and could ask applicants to attend an assessment centre in person. The draft lists the documents a person with a disability would attach:

• ID and council registration certificate;
• a valid KRA tax compliance certificate;
• a disability medical assessment report and a specialist report from a registered government health facility;
• proof of income and, for employees, an employer’s letter describing the disability.

The Commissioner would decide within 30 days of the committee’s recommendation. Certificates would last five years, but people with permanent disabilities would not need to renew. Someone unhappy with a decision could seek a review by the Cabinet Secretary within 30 days, then appeal to the Tax Appeals Tribunal. Our guide to the tax exemption for persons with disabilities in Kenya explains the process that applies today.

Comments go to stakeholder.engagement@kra.go.ke or the Commissioner General, KRA, P.O. Box 48240-00100, Nairobi, by 24 November 2026. These are draft rules, and the final disability tax exemption scheme may differ.

Frequently asked questions

Is the new disability tax exemption already in force?

No. The regulations are a draft open for comment until 24 November 2026. The current rules apply until final regulations take effect.

What is the maximum disability tax exemption proposed?

Up to KSh150,000 of monthly income, or KSh1.8 million a year, for people whose disability qualifies for a 100% exemption.

Can a parent of a child with a severe disability get tax relief?

The draft proposes an extra KSh10,000 a month of exempt income for one parent or guardian who has full care and custody and earns an income.