KRA lists Kenyans who could qualify for 100% income tax exemption

The Kenya Revenue Authority (KRA) has proposed new income tax exemption rules that could allow persons with disabilities with specific permanent or severe conditions to qualify for a 100 per cent tax exemption.

Under the newly drafted Income Tax (Persons With Disabilities, Parents or Guardians Tax Exemptions) Regulations, 2026, the maximum allowable exemption is capped at Ksh 150,000 per month, equivalent to Ksh 1.8 million annually.

Unlike the previous blanket approach, the proposed regulations introduce a graduated exemption system based on the severity of an individual’s disability.

According to the draft regulations, people with mild disabilities will not qualify for tax relief, while those with moderate to severe impairments will receive varying percentages of the maximum Ksh 150,000 monthly exemption.

Individuals with total blindness will qualify for a 100 per cent exemption, equivalent to the full Ksh 150,000 monthly relief.

Those with severe visual impairment will receive a 60 per cent exemption, while individuals with moderate visual impairment will qualify for 30 per cent relief.

For people with hearing impairments, moderate to severe hearing loss will attract a 50 per cent exemption.

Other categories, including speech, physical, mental and autism-related disabilities, will also be assessed under graduated exemption levels depending on medical evaluations.

The proposed regulations also introduce additional relief for caregivers.

A single parent or legal guardian providing full-time care for a dependant with a severe disability who is completely incapable of basic self-care will qualify for an additional KSh 10,000 monthly income tax exemption.

The proposed relief is intended to help offset caregiving and medical expenses.

Under the proposed rules, a seven-member vetting committee comprising officials from KRA, the National Council for Persons with Disabilities (NCPD) and medical boards will assess applicants in person.

Successful applicants will receive exemption certificates valid for five years. However, individuals certified with permanent disabilities will receive lifetime certificates and will not be required to undergo repeated medical assessments or renewal procedures.

Applicants will be required to apply through the NCPD and attach medical reports, proof of income and a valid Tax Compliance Certificate.

Guardians seeking the additional exemption will also be required to pay a Ksh 1,000 processing fee.

The draft further proposes that individuals currently enjoying tax relief under the 2010 regulations will lose their exemptions if they fail to meet the new requirements once the proposed rules are gazetted.

The proposed regulations will be considered for finalisation after the public participation process.

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