Inside KRA’s Proposed Ksh150,000 Monthly Tax Exemption for Some Kenyans

The Kenya Revenue Authority (KRA) has proposed new tax exemption measures that could significantly reduce the tax burden on persons living with disabilities and parents or guardians responsible for their care.

Under the proposed regulations, registered persons with disabilities who earn an income could receive monthly tax exemptions of up to KSh150,000, translating to KSh1.8 million annually.

The proposals are contained in the draft Income Tax (Persons With Disabilities, Parents or Guardians Tax Exemptions) Regulations, 2026, which were made public on Monday, November 9, 2026.

According to the draft regulations, the amount of income exempted from taxation will depend on the severity and nature of an individual’s disability.

People with severe disabilities could qualify for the highest exemption, while those with mild disabilities may not receive any exemption under the proposed assessment framework.

The proposed classification covers different categories of disabilities, including physical, mental, speech, hearing and autism-related conditions.

For persons with hearing disabilities, the proposed framework provides for a 50 per cent exemption in cases involving moderate to severe hearing loss, depending on the applicable assessment criteria.

The proposals also seek to extend tax relief to parents and guardians who take full responsibility for caring for persons with severe disabilities.

Under this arrangement, eligible parents or guardians could receive an additional monthly income tax exemption of KSh10,000, offering further financial relief to households facing the cost of specialised care.

KRA says the proposed regulations are intended to establish a fair, transparent and accountable framework for administering tax exemptions to persons with disabilities and their caregivers.

The framework is anchored in the Persons with Disabilities Act, 2025, which provides a legal foundation for protecting the rights and welfare of persons with disabilities.

If implemented, the proposals could provide meaningful financial relief to thousands of Kenyans with disabilities and families supporting them.

However, the measures remain proposed regulations, meaning eligible taxpayers will need to await the final rules and implementation guidelines before claiming the exemptions.

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