How Teachers with Disabilities Can Get the TSC Blue Letter for Tax Exemption in Kenya

Teachers with disabilities in Kenya have a right to special support and recognition under the law. One of the most important benefits they can access is the PAYE tax exemption, which can drastically reduce their monthly deductions and increase take-home pay. To enjoy this benefit, teachers must be issued with the TSC Blue Letter—an official confirmation that a teacher has been exempted from income tax.

In this guide, we explain what the TSC Blue Letter is, how teachers with disabilities can apply for tax exemption, the documents needed, and why this reform matters for thousands of educators across the country.

What is the TSC Blue Letter?

The TSC Blue Letter is an official communication from the Teachers Service Commission (TSC) confirming that a teacher living with disability has been exempted from PAYE (Pay As You Earn) tax. This exemption is processed by the Kenya Revenue Authority (KRA) in partnership with the National Council for Persons with Disabilities (NCPWD) as provided for under Section 12 of the Persons with Disabilities Act, 2003.

Once approved, the Blue Letter is sent to the teacher and also copied to TSC payroll managers so that PAYE deductions stop being applied to the teacher’s salary.

Why the Blue Letter Matters

For many teachers with disabilities, the cost of living is higher because of medical expenses, assistive devices, or mobility needs. Without tax exemption, their income is significantly reduced. The Blue Letter allows them to keep more of their salary, easing the financial burden.

For example, a teacher in Job Group C2 earning Ksh 50,000 per month may save over Ksh 10,000 every month once exempted from PAYE. This is a significant benefit that not only improves living standards but also promotes equity in the teaching profession.

Who Qualifies for the TSC Blue Letter?

Not every teacher automatically qualifies for tax exemption. To be considered:

• The teacher must be registered with NCPWD
• They must hold a valid disability card issued by NCPWD
• The disability must meet the criteria outlined in the Persons with Disabilities Act
• The teacher must submit an application to KRA, supported by medical records and the disability card

Once the exemption is approved by KRA, the information is forwarded to TSC, which then issues the Blue Letter.

Step-by-Step Guide: How to Apply for Tax Exemption

1. Register with NCPWD – Visit your county NCPWD office and apply for a disability card if you don’t already have one
2. Prepare Medical Documents – Obtain certified medical reports detailing your condition
3. Apply to KRA – Log in to the KRA iTax portal, fill in the application for tax exemption, and upload required documents
4. Await KRA Approval – KRA reviews the application, sometimes involving verification with NCPWD
5. TSC Notification – Once approved, KRA notifies TSC, which then issues the Blue Letter confirming exemption from PAYE

Teachers can track the status of their applications through both KRA and TSC online platforms.

Link Between Tax Exemption and Teacher Welfare

The introduction of the Blue Letter is part of broader reforms aimed at improving teacher welfare. Just as TSC has been digitizing transfers for Junior Secondary School teachers and adjusting recruitment policies, it is also aligning with inclusive policies for teachers with disabilities.

For example, recent reforms banned certain degrees from TSC recruitment to improve quality in the profession. You can read more about that here: TSC Recruitment Guidelines 2025: Degrees Banned

At the same time, TSC has introduced a fairer score sheet for teachers with disabilities applying for internship positions. Details can be found here: TSC 2025 PWD Teacher Intern Score Sheet

These reforms show that teacher welfare is now a priority in both employment and taxation policies.

Digital Tools That Can Help Teachers

While awaiting approval for exemptions, teachers with disabilities can explore digital platforms that boost income or simplify work.

• Many Kenyan teachers are already earning extra income online. Check out: Best Online Platforms for Teachers Income 2025
• Teachers are also embracing new technologies in the classroom. See: Top 5 AI Tools Every Kenyan Teacher Should Start Using in 2025

This shows that teacher empowerment is not only about tax benefits but also about adopting innovative ways to thrive in a competitive world.

Teachers’ Voices and Reactions

Feedback from teachers with disabilities has been encouraging. Many say the Blue Letter gives them dignity and recognition, while also relieving financial pressure. However, some challenges remain, including delays in processing at KRA, lack of awareness, and bureaucratic red tape.

Education unions such as KNUT and KUPPET have called on the government to streamline the process and sensitize teachers, especially those in rural areas, about their rights under the Persons with Disabilities Act.

👉 Related read: How KNEC Plans to End KCSE Exam Irregularities for Good

Final Thoughts

The TSC Blue Letter is more than just a document—it is a lifeline for teachers with disabilities in Kenya. By easing their tax burden, it promotes fairness, inclusivity, and dignity in the teaching profession. With awareness and proper follow-up, more teachers will be able to access this benefit and improve their livelihoods.

As 2025 unfolds, it is clear that teacher reforms—from tax exemption to recruitment policies and exam management—are reshaping the education sector. Teachers with disabilities should take advantage of the Blue Letter while also embracing digital tools, new opportunities, and ongoing reforms for a brighter future.