The draft 2026 regulations introduce income tax relief for parents and guardians of persons with severe disabilities and a tiered exemption system based on disability ratings. The proposals also revise assessment, certification, and appeals procedures, with public submissions due by 24 November 2026.
The Kenya Revenue Authority (KRA), on behalf of the Cabinet Secretary for the National Treasury, has issued a public notice on 9 November 2026 marking the formal public participation and stakeholder consultation stage for the draft Income Tax (Persons with Disabilities, Parents or Guardians Tax Exemptions) Regulations, 2026.
The draft regulations introduce major policy and procedural shifts that directly impact persons with disabilities (PWDs), caregivers, employers, and medical practitioners. These are
Inclusion of parents and legal guardians
The proposed relief extends to parents or legal guardians who have primary care and custody of individuals with certified severe disabilities who cannot meet their basic needs. The exemption is limited to one caregiver per person and is set at KSH 10,000 per month above the exempt income threshold.
Graduated exemption structure for PWDs
The tax exemption remains capped at KSH 150,000 per month (KSH 1.8 million annually). The proposed rules introduce tiered exemptions based on Ministry of Health/ICF disability ratings, ranging from 0% for mild impairments to 100% for profound, complete impairments and blindness. Moderate and severe impairments generally qualify for 30%–60% exemptions, with a 50% rate for moderate hearing impairment.
Institutional assessment framework
A seven-member Income Tax Exemption Assessment Committee will be established, comprising representatives from the Kenya Revenue Authority (KRA), the National Council for Persons with Disabilities (NCPWD), and designated healthcare and medical regulatory bodies. The committee will assess applications quarterly, conduct physical examinations, and recommend decisions to the Commissioner General.
Permanent disability vs. periodic renewal
Exemption certificates will generally remain valid for five years. However, applicants certified with permanent disabilities will be exempt from further medical reassessments and certificate renewals.
Dispute resolution and transition
Applicants can request a review by the Cabinet Secretary within 30 days of a decision, followed by an appeal to the Tax Appeals Tribunal. Existing certificates will remain valid until expiry, but individuals who do not meet the new eligibility criteria will lose their exemption once the regulations are gazetted.
Submission details & public engagement
The KRA invites relevant stakeholders to submit written feedback on the proposed regulations by 24 November 2026 via email at [email protected] or by post or hand delivery to the Commissioner General, Kenya Revenue Authority, P.O. Box 48240-00100, Nairobi.
