A theory of the electronic response in spin and charge disordered media is developed with the particular aim to describe III-V dilute magnetic semiconductors like Ga1−xMnxAs. The theory combines a detailed k · p description of the valence band, in which the itinerant carriers are assumed to reside, with first-principles calculations of disorder contributions using an equation-of-motion approach for the current response function. A fully dynamic treatment of electron-electron interaction is achieved by means of time-dependent density functional theory. It is found that collective excitations within the valence band significantly increase the carrier relaxation rate by providing effective channels for momentum relaxation. This modification of the relaxation rate, however, only has a minor impact on the infrared optical conductivity in Ga1−xMnxAs, which is mostly determined by the details of the valence band structure and found to be in agreement with experiment.