KRA Reveals Kenyans Who Could Stop Paying Income Tax Completely Under New Proposal

The Kenya Revenue Authority (KRA) has proposed new regulations that could allow Kenyans living with certain disabilities to receive up to 100 per cent exemption from income tax, depending on the severity of their medical conditions.

The proposed changes are contained in the draft Income Tax (Persons With Disabilities, Parents or Guardians Tax Exemptions) Regulations, 2026, which introduce different levels of tax relief based on the nature and extent of an applicant’s disability.

Under the proposed framework, the maximum monthly income eligible for exemption would be KSh 150,000, translating to KSh 1.8 million annually.

Unlike the previous arrangement, which offered tax relief through a less differentiated approach, the new proposal introduces varying exemption percentages for different categories of disabilities.

People with total blindness would qualify for the full 100 per cent exemption, covering the maximum KSh 150,000 monthly income. Those with severe visual impairment would receive a 60 per cent exemption, while individuals with moderate visual impairment would qualify for 30 per cent relief.

Kenyans with moderate to severe hearing loss would be eligible for a 50 per cent exemption. Other conditions involving speech, physical and mental impairments, as well as autism-related disabilities, would also be assessed under different exemption levels depending on medical evaluations.

The proposal further seeks to introduce additional financial relief for parents and guardians caring for dependants with severe disabilities.

A single parent or legal guardian providing full-time care to a dependant who is completely unable to perform basic self-care activities would qualify for an additional KSh 10,000 monthly income tax exemption.

The proposed allowance is intended to ease the financial pressure associated with medical treatment and caregiving responsibilities.

KRA has also outlined new procedures for determining eligibility. Applications would be submitted through the National Council for Persons with Disabilities (NCPD), accompanied by medical reports, proof of income and a valid Tax Compliance Certificate.

A seven-member committee comprising representatives from KRA, NCPD and relevant medical boards would conduct physical assessments before approving applications.

Successful applicants would receive exemption certificates valid for five years. However, individuals whose disabilities are certified as permanent would qualify for lifetime certificates without undergoing repeated medical assessments or renewal procedures.

Guardians seeking the additional tax relief would also be required to pay a KSh 1,000 processing fee.

The draft regulations further indicate that Kenyans currently benefiting from exemptions under the 2010 rules could lose their tax relief if they fail to satisfy the new requirements after the proposed regulations are gazetted.

The proposals are yet to become law, as KRA plans to consider feedback from the public participation process before finalising the regulations.

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