Tax Exemption for Persons with Disabilities in Kenya: Requirements & Application Process

In Kenya, the Persons with Disabilities Act 2003 and the Persons with Disabilities (Income Tax Deductions and Exemptions) Order 2010 provide tax exemptions for persons with disabilities. Eligible individuals are exempt from income tax on the first Ksh 150,000 per month or Ksh 1.8 million annually. To qualify for this tax exemption, applicants must meet certain criteria:

Persons with Disabilities Tax Exemption Requirements

• Disability Assessment Report: A filled and stamped report detailing the nature of the disability, issued by a government gazetted hospital.
• Registration with NCPWD: Must be registered with the National Council for Persons with Disabilities (NCPWD) and possess a disability membership certificate.
• Income Subject to Tax: The applicant must be receiving income that is taxable under the Income Tax Act.
• Vetting Process: The applicant must undergo vetting by a committee comprising officials from the NCPWD, the Ministry of Health (MOH), and the Kenya Revenue Authority (KRA). A recommendation is required.

How to Apply for Tax Exemption for Persons with Disabilities

1. Log In to the NCPWD Portal
   Visit the NCPWD portal via e-Citizen: https://ncpwd.ecitizen.go.ke/ and sign in.
2. Prepare and Upload Required Documents
   Attach the following documents to your application:
   • Disability Assessment Report from a government hospital.
   • Medical report from a specialist consultant.
   • If employed, a letter from your employer outlining the disability and its impact on work.
   • Business registration certificate (if applicable).
   • Rent schedule (if receiving rental income).
   • Retirement letter and pension schedule (for pensioners).
   • Proof of income (latest payslip, bank statement, or rental income).
   • Copy of National ID.
   • NCPWD Certificate.
   • Valid Tax Compliance Certificate.
   • KRA PIN Certificate.
   • Copy of expired certificate (for renewals).
3. Submit the Application
   Upload your documents via the NCPWD e-Citizen portal.
4. Physical Vetting
   You will be invited to attend a physical vetting by the NCPWD, MOH, and KRA officials.
5. Submission to KRA
   Upon successful vetting, the NCPWD submits your application to KRA via the iTax system. You will receive an acknowledgement number for tracking.
6. Processing by KRA
   KRA will process your application within 30 days. If approved, you will receive the tax exemption certificate via your registered email. The certificate is valid for five years.
7. Rejection of Application
   If the application is rejected, you will be notified via email with the reasons. You must reapply after the five-year validity period has expired.

Car Import Tax Exemption for Disabled Persons in Kenya

Eligible persons with disabilities can also apply for car import tax exemptions. The process includes several requirements:

1. Application Letter: Addressed to the Commissioner of Customs Services.
2. Medical Certificate: Issued by a registered doctor.
3. Letter of Recommendation: From the Association for the Physically Disabled of Kenya or NCPWD.
4. Driving License: With Class H endorsement.
5. Bill of Lading: For the vehicle.
6. Invoice/Proforma Invoice: For the vehicle.
7. Tax Compliance Certificate or Tax Exemption Certificate.
8. Cash Remittance Slips: Proving the payment for the vehicle.
9. Bank Statement: For the last six months.
10. Test Drive: Involving a modified vehicle, conducted in the presence of a customs officer.

Important Notes:

• Special Design Requirement: The vehicle must be specially designed to suit the disability. KRA often rejects applications if the vehicle is not sufficiently modified.
• Limitations on Number of Vehicles: A PwD can only import one vehicle every four years.
• Complicated Process: Importing a vehicle can take multiple visits and long waiting periods, and applicants are required to demonstrate their ability to drive the modified vehicle.

Contact Information for Clarifications

• Kenya Revenue Authority (KRA)
  Phone: +254 20 4 999 999 or +254 711 099 999
  Email: [email protected]
• National Council for Persons with Disabilities (NCPWD)
  Toll Free: 0800 724 333
  Phone: 020 2375994/020 2314621/0709 107 000
  Email: [email protected]