What Families, Settlors And Trustees Need To Know About Kenya’s New Trust Law

At a glance

• The Trust Administration Act, 2026 (Act) introduces a clearer framework for the creation, registration and administration of trusts in Kenya.
• Trusts remain useful for succession planning, wealth preservation, asset protection, philanthropy and family governance, but they will now require more deliberate structuring, registration, administration and record-keeping.
• This alert highlights the practical changes introduced by the Act. It focuses on what has changed, what represents a codification or consolidation of existing trust principles, and what trustees, settlors, trust agents, corporate trustees and beneficiaries should consider under the new regime.

For settlors, trustees, beneficiaries and families, the Act is a material development. Trusts remain useful for succession planning, wealth preservation, asset protection, philanthropy and family governance, but they will now require more deliberate structuring, registration, administration and record-keeping.

This alert highlights the practical changes introduced by the Act. It focuses on what has changed, what represents a codification or consolidation of existing trust principles, and what trustees, settlors, trust agents, corporate trustees and beneficiaries should consider under the new regime.

Registration is now central to trust planning

A central feature of the Act is the requirement for written trusts to be registered or incorporated in accordance with the statutory process. Trust deeds, trustee appointments, beneficiary information and supporting documents should therefore be prepared carefully from the outset.

Why it matters: Trustees and settlors can no longer treat execution of a trust deed as the end of the formal process.

The distinction between registration and incorporation is important. A registered trust remains a trust arrangement. An incorporated trust acquires corporate status, perpetual succession and the capacity to hold property, sue and be sued in its own name. Incorporation may be appropriate where the trust will hold real estate, investments or family business interests over the long term.

Why it matters: The choice of trust affects asset holding, continuity and administration when trustees change.

Registrar oversight

The Act establishes a dedicated Registrar of Trusts (Registrar) within the Business Registration Service and gives the Registrar responsibility for the statutory register and administration of the Act. The Registrar’s role extends beyond registering trusts. The Registrar will receive annual and event-driven filings, administer beneficial ownership information, correct register entries and may require information or issue compliance directions

Why it matters: Trust administration now involves an ongoing statutory relationship with the Registrar, not only private deed administration.

Trusts will face greater transparency obligations

The Act introduces a beneficial ownership framework for trusts. Trustees must maintain prescribed information on beneficial owners, lodge the relevant details with the Registrar and update that information within the applicable statutory timelines. A beneficial owner is the natural person who ultimately owns or controls a legal arrangement, or on whose behalf a transaction is carried out. Trustees will need to identify all persons who fall within this definition, including those who exercise effective control over the trust.

Why it matters: While trusts remain private planning structures, they can no longer be treated as informal or purely internal family documents. Beneficial ownership disclosure is a central transparency and anti-money-laundering compliance obligation.

Trustee duties are now clearer and more enforceable

The Act codifies key trustee eligibility and duties, including the duty to act honestly, in good faith and within their powers; preserve trust property; avoid conflicts of interest; keep trust property separate from personal property; maintain proper records; and act in the interests of beneficiaries.

Why it matters: Trustee appointments, corporate trustee structures and existing trust deed protections now require statutory review. A trustee appointment should therefore not be regarded as nominal or ceremonial. It carries fiduciary duties, potential liability and continuing compliance obligations.

Trust agents and records

The Act recognises trust agents as a statutory trust administration role and supports electronic filing and records. A trust agent is not mandatory for every trust, but where one is appointed to perform functions under the Act, the agent must be an Advocate of the High Court of Kenya, certified secretary or certified public accountant. The agent may assist with the establishment and administration of a trust, including preparing registration or incorporation documents, providing a registered office for a family trust and lodging documents with the Registrar.

Why it matters: This replaces the largely informal treatment of professional trust administration under the repealed trust statutes with a defined role, qualification requirements and continuing statutory obligations. Appointment or cessation of a trust agent must be notified to the Registrar within 21 days, and the agent is subject to prescribed record-keeping and information requirements, including a seven-year retention period after ceasing to act.

Existing trusts should be reviewed

Existing trusts should be reviewed against the Act to confirm whether the trust deed, trustee appointments, beneficiary information, beneficial ownership records, trustee powers, dispute-resolution provisions, asset-holding arrangements and approval processes remain fit for purpose.

The Act gives existing trusts 24 months to comply with the new regime, with the deadline falling on 25 September 2028. The transition period is not an exemption from the Act. Existing trusts should use it to regularise their registration or incorporation, governance, records and filings.

What this means for families and individuals

For individuals or organisations considering a trust, the new framework provides greater certainty but requires careful planning. Trust deeds should clearly address the purpose of the trust, trustee powers and duties, beneficiary rights, decision-making procedures, reporting obligations and the treatment of trust assets.

For families with existing succession or wealth-planning structures and institutions operating charitable trusts, the priority should be compliance. Structures that were suitable under the previous framework may require amendments, updated records or a reassessment of whether registration or incorporation is the better route.

What next?

Trustees and settlors should consider a trust health check to identify any gaps and determine what needs to be addressed under the new regime. This should cover, at a minimum:

• Status and structure: Confirm whether the trust is registered or incorporated, whether it meets the Act’s enforceability requirements, and whether its current structure remains appropriate for its assets and succession arrangements.
• Beneficial ownership and filings: Compile and lodge the beneficial ownership register, establish a process for updating changes within 21 days and diarise the annual return and other event-driven filings.
• Trustee eligibility: Review individual trustees against the statutory disqualification criteria and confirm that corporate trustees meet the applicable requirements.
• Governance and liability: Review the trust deed and governance procedures, including trustee decision-making and record-keeping, against the Act’s liability provisions and any exemption, exoneration or indemnity provisions.
• Trust agents: Where a trust agent is used, confirm the agent’s qualifications and compliance with the appointment, notification and record-keeping requirements.
• Trustee changes and records: Ensure there is a clear process for trustee appointments and cessations, handover of trust property and records, and identifying when a vesting order may be required.
• Data and electronic records: Review how trust information is collected, stored, transmitted and disclosed, particularly beneficial ownership and other personal data, and ensure electronic administration complies with the Act and the Data Protection Act.

The health check should leave trustees with a clear list of what needs to be regularised, what needs to be updated and what ongoing compliance processes need to be put in place before the transition period expires.

Trusts remain a valuable succession and wealth-planning tool, but under the new regime they must be properly documented, registered where required, effectively governed and actively maintained.