Disability Tax Exemption Checker Kenya 2026

The disability exemption

Kenyan tax law gives a person with a disability an income tax exemption. Under the Income Tax Act, a resident individual who holds an exemption certificate from the National Council for Persons with Disabilities (NCPWD) does not pay tax on the first part of their monthly income. The exempt amount is currently KES 150,000 a month and is held in the rates for this site, so it updates if the law changes.

The exemption is meant to cover the extra costs of living with a disability. It applies to employment income and, with the right certificate, to other income as well, though this checker only looks at monthly salary.

Who qualifies

You need a valid exemption certificate from NCPWD, issued after assessment, and you must give a copy to your employer so that payroll can apply the exemption. The certificate has an expiry date, and you must renew it. A parent or guardian who is caring for a person with a disability may also qualify in some circumstances: ask NCPWD or KRA about their situation.

What the checker does

It calculates your PAYE twice from the same salary, once with the exemption and once without, and reports:

• the income exempted (capped at your taxable pay);
• PAYE without the exemption and with it;
• the PAYE saved each month and each year;
• your net pay with the exemption.

The exempt amount is deducted from your taxable pay after the normal deductions for NSSF, SHIF, the Housing Levy and pension, and before the tax bands are applied.

A worked example

For a monthly basic salary of KES 100,000, the exemption saves KES 19,308.35 of PAYE each month, because taxable pay is below the exempt limit and the whole of it is exempt. For a much higher salary the saving is smaller as a share of tax, because only the first part of income is exempt.

How to claim it

1. Apply to NCPWD for assessment and an exemption certificate.
2. Give your employer a copy and ask them to apply the exemption from the next payroll.
3. If your employer has been taxing you without the exemption, claim a refund through your annual return on iTax, and attach the certificate.
4. Renew the certificate before it expires. Without a valid certificate, payroll should stop applying the exemption.

Things people ask

• Does the exemption apply to NSSF or SHIF? No. The statutory contributions are still deducted from your pay. The exemption lowers the tax, not the contributions.
• Does it apply to the Housing Levy? The levy is still charged on gross pay.
• What about a self-employed person? The exemption can also apply to business income with the certificate. The way it is applied on an annual return is different from payroll, so ask a tax adviser.
• Is the exempt figure fixed? No. It comes from the Income Tax Act and has been changed over time, so check the date used for your calculation.

About the result

The checker follows the general rule and gives an estimate for information only. How an exemption applies to a particular person depends on their certificate and the type of income, so confirm with NCPWD, KRA or a registered tax agent before you rely on it.

Practical steps for employers

An employer who receives an exemption certificate should record its number and expiry date, apply the exemption from the next payroll and keep a copy on the employee's file. Put a reminder in the calendar before the certificate expires, because applying the exemption after expiry means under-deducting tax. Treat the certificate as confidential: it contains health-related information, and your data protection duties apply. If an employee gives you a certificate late, ask a tax adviser how to correct earlier months, which usually happens through the employee's annual return.

Guides, tools and templates for this topic

Read next: How PAYE is calculated in Kenya, step by step, NSSF contributions explained: tiers, limits and what you pay, Gross pay versus net pay: how to negotiate a salary in Kenya

Related calculators: PAYE Calculator, Tax Reliefs Calculator, Net to Gross Salary Calculator

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