tax exemption for kenyans with disability

Last updated: September 19, 2024

Kenyans with Disabilities: Understand Your Tax Exemptions

In Kenya, individuals with disabilities are entitled to significant tax exemptions that can greatly ease their financial burden. However, many are unaware of these benefits or how to claim them. This article aims to shed light on these exemptions and provide practical steps to take advantage of them.


Personal Stories: Real Impact

Meet Kasamueli, a Nairobi resident who has been living with a disability for over a decade. Kasamueli was unaware of the tax exemptions available to him until he consulted with a tax advisor. By claiming her rightful exemptions, Kasamueli was able to save a substantial amount on his taxes, allowing him to invest in adaptive equipment that improved his quality of life.


Who is a Person with a Disability (PWD)?

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:

  1. Physical Impairments: Conditions affecting mobility or physical capabilities.

  2. Mental Impairments: Conditions affecting mental health or cognitive functions.

  3. Intellectual Impairments: Conditions affecting intellectual abilities.

  4. 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?

Tax exemptions are specific provisions in the tax code 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: 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.

  • VAT Exemption: Certain goods and services, such as assistive devices and medical supplies, are exempt from VAT.

  • Customs Duty Exemption: Imported goods specifically designed for use by persons with disabilities are exempt from customs duty.

 

How to Claim Your Exemptions

  1. Obtain a Disability Certificate: Ensure you have a valid disability certificate from the National Council for Persons with Disabilities (NCPWD).

  2. Register with KRA: Register with the Kenya Revenue Authority (KRA) as a person with a disability.

  3. File Your Taxes: When filing your taxes, include your disability certificate and any relevant documentation to claim your exemptions.


Simplifying the Process

Navigating tax exemptions can be daunting, 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 can help you register with KRA as a PWD. We can also file your tax return accordingly.

Have you successfully claimed your tax exemptions? Share your story in the comments below.


Written by Joseph Wachira
The author is a senior tax consultant and can be reached via wachira@cleartax.co.ke

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