tax exemption for kenyans with disability
Kenyans with Disabilities - Understand Your Tax Exemptions in 2025
In Kenya, people with disabilities are entitled to significant tax exemptions that can greatly ease their financial burden. Unfortunately, many are unaware of these benefits or how to claim them.
In this article, I explain these exemptions and offers practical steps on how to access them.
Personal Stories, Real Impact
Imagine Kasamueli, a Nairobian who has lived with a disability for over a decade. Kasamueli was unaware of the tax exemptions available to him until he consulted a tax advisor. By claiming his rightful exemptions, he saved a substantial amount on taxes. Funds he later used to buy adaptive equipment that improved his quality of life.
Who is a Person with a Disability (PWD) in Kenya?
A Person with a Disability (PWD) is one who has a long-term physical, mental, intellectual, or sensory impairment which, in interaction with various barriers, may hinder their full and effective participation in society on an equal basis with others. The impairment may include:
Physical Impairments: Conditions affecting mobility or physical capabilities.
Mental Impairments: Conditions affecting mental health or cognitive functions.
Intellectual Impairments: Conditions affecting intellectual abilities.
Sensory Impairments: Conditions affecting senses such as sight or hearing.
In Kenya, the National Council for Persons with Disabilities (NCPWD) is responsible for certifying individuals as PWDs. This certification is essential for accessing various benefits, including tax exemptions.
What Are Tax Exemptions for PWDs in Kenya?
Tax exemptions are specific provisions in the tax laws that allow individuals to reduce their taxable income. This means that a portion of their income is not subject to tax, effectively lowering the amount of tax they owe.
For example, in Kenya, individuals with disabilities can benefit from tax exemptions on their income, certain goods, and services. These exemptions are designed to provide financial relief and support to those who qualify.
They include:
Income Tax Exemption in Kenya
Persons with disabilities are exempt from paying income tax on the first Ksh 150,000 of their monthly income. Or Ksh. 1.8M per year. This applies to employment, business, and consultancy income.
Example 1.
If Jane, who is a PWD, earns a gross salary of Ksh. 200,000. She will only be taxed on Ksh. 50,000 (200,000 - 150,000). Not the entire Ksh. 200k salary.
If Jane, who is a PWD, earns a gross salary of Ksh. 100,000. She will not be taxed at all. Because her income is below the Ksh 150,000 exemption limit.
Is it clear? ... Great.
2. VAT Exemptions for PWD in Kenya
Certain goods and services for PWDs, such as assistive devices and medical supplies, are exempt from Value Added Tax (VAT). This ensures that essential products remain affordable for those who need them most.
3. Customs Duty Exemption for PWDs in Kenya
Imported goods specifically designed for use by persons with disabilities are exempt from customs duty.
This includes cars, assistive devices, medical equipment, and rehabilitation materials.
Additionally, exemptions apply to demurrage charges, port fees, and other government levies that would otherwise raise the cost of importing these items.
Purchases, imports, transfers, or gifts of equipment related to disability are also exempt from both import duty and VAT, upon approval by KRA.
4. Non-Tax Reliefs for PWDs in Kenya
Beyond tax exemptions, the Persons with Disabilities Act provides non-tax reliefs, such as:
Exemption from postal charges for Braille literature and sound recordings / hearing devices.
Who Qualifies for PWD Tax Deductions in Kenya?
The person with disability. Must be registered with NCPWD.
A parent or guardian who cares for a person with a severe disability, one incapable of catering for their basic needs, can apply to KRA through NCPWD for an income tax exemption.
Example:
If a mother takes care of her adult son with a severe mental impairment who cannot work or support himself, she may apply for a tax exemption on her own income, since she shoulders his care and expenses.
How to Claim Your Exemptions
Obtain a Disability Certificate: Ensure you have a valid disability certificate from the National Council for Persons with Disabilities (NCPWD).
Register with KRA: Register with the Kenya Revenue Authority (KRA) as a person with a disability through NCPWD.
File Your Taxes: When filing your taxes, include your disability certificate and any relevant documentation to claim your exemptions.
In Conclusion
Handling tax exemptions can be challenging, but there are resources available to help. Organizations like the NCPWD and various non-profits offer guidance and support to ensure you can claim your exemptions without hassle.
At ClearTax, we assist persons with disabilities (PWDs) in:
Registering with KRA for tax exemption, and
Filing their annual tax returns correctly.
We also offer tax and personal finance training to our parents, brothers and sisters with disability. Especially those organized in community groups or supported by NGOs.
Written by Joseph Wachira
The author is a senior tax consultant and can be reached via wachira@cleartax.co.ke
Frequently Asked Questions (FAQs) – PWD Tax Exemptions in Kenya (2025)
1. Who qualifies for tax exemptions as a person with a disability (PWD) in Kenya?
Anyone certified by the National Council for Persons with Disabilities (NCPWD) as having a long-term physical, mental, intellectual, or sensory impairment that substantially limits their ability to work or function independently.
2. How much of my income is exempt from tax in Kenya?
PWDs are exempt from income tax on the first Ksh 150,000 per month (or Ksh 1.8 million per year) of their earnings, whether from employment, business, or consultancy. Any income above that limit is taxed normally.
3. I’m a parent caring for a child with a severe disability. Do I qualify?
Yes. Under Section 57 of the Income Tax Act, a parent or guardian who takes care of a person certified with severe disability, and who cannot cater for their own basic needs, can apply for an income tax exemption on their own income from KRA.
4. Does having a disability automatically qualify me for the tax exemption?
No. You must be certified by NCPWD and then apply to KRA for the income tax exemption. The exemption takes effect only after approval by KRA.
5. What goods or services are VAT exempt for PWDs?
Assistive devices, mobility aids, rehabilitation equipment, and other goods and services specifically designed for use by persons with disabilities are exempt from Value Added Tax (VAT).
6. Can I import a car or assistive device duty-free in Kenya?
Yes. Persons with disabilities may import vehicles or equipment designed for their personal use without paying import duty or VAT, subject to prior approval by KRA.
7. Do I need to renew my tax exemption certificate?
Yes. The KRA exemption certificate is usually valid for three years and must be renewed through NCPWD upon expiry, after confirming that you still meet the qualifying conditions.
8. Can both parents claim the exemption for the same dependent?
No. Only one parent or guardian, the one who has actual care and custody, can apply for and enjoy the exemption under Section 57.
9. What happens if my disability is temporary or improves with treatment?
If the disability is no longer severe or limits your ability to work, KRA may review or withdraw the exemption. The tax relief is meant for long-term or permanent disabilities.
10. What if I need help applying for my exemption?
You can seek assistance from NCPWD, KRA offices, or professional advisors like ClearTax, who can help you:
Prepare your exemption application
Register correctly with KRA
File your tax returns as a PWD
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