Kenya’s Trust Administration Act, 2026: A Comprehensive Guide to Trust Registration, Incorporation, Beneficial Ownership, Trustee Duties and Compliance

Trust Administration Act 2026 Kenya: Registration & Compliance Guide,Explore Kenya’s Trust Administration Act 2026, covering trust registration, family trusts, beneficial ownership, trustee duties, penalties and compliance deadlines.

A New Era for Trust Administration in Kenya

Kenya has entered a significant new chapter in the regulation and administration of trusts following the enactment of the Trust Administration Act, 2026 (Act No. 28 of 2026). The legislation introduces comprehensive reforms designed to modernize trust law, strengthen transparency, enhance accountability and establish a more structured regulatory environment for trusts operating in Kenya.

The Act received presidential assent on 8 September 2026, was published in Kenya Gazette Supplement No. 223 on 11 September 2026, and commenced on 25 September 2026.

Representing one of the most substantial reforms of Kenyan trust law in almost a century, the new legislation consolidates the legal framework governing the creation, registration, incorporation, administration and dissolution of trusts.

It repeals two longstanding statutes:

• The Trustee Act (Cap. 167).

• The Trustees (Perpetual Succession) Act (Cap. 164).

Historically, Kenya’s trust administration framework was fragmented across several statutes, common law principles and equitable doctrines. The Trustee Act, originally enacted in 1929 and substantially influenced by English legislation, regulated trustee powers and administration. Meanwhile, the Trustees (Perpetual Succession) Act established a separate incorporation framework primarily for religious, educational, charitable and similar institutions.

Private trust deeds, including family trusts, were commonly registered under the Registration of Documents Act, although registration was largely optional and there was no unified regulatory authority overseeing all trusts.

This fragmented structure presented challenges relating to regulatory supervision, legal certainty, transparency and the identification of persons exercising ultimate ownership or control over trust arrangements.

The Trust Administration Act, 2026 addresses these challenges by establishing a centralized registration and oversight framework under the Business Registration Service (BRS).

Among its most significant innovations are the establishment of the Registrar of Trusts, mandatory registration or incorporation of written trusts, beneficial ownership disclosure requirements, statutory recognition of different categories of trusts, codification of trustee duties and the introduction of new governance roles such as enforcers and trust agents.

The Act also establishes administrative penalties, criminal offences and recurring reporting obligations. Existing trusts have a transitional period of 24 months within which to comply, subject to any alternative period directed by the Registrar.

For trustees, settlors, beneficiaries, families, charitable institutions, religious organizations, NGOs and estate-planning professionals, understanding these reforms is essential to ensuring lawful administration and long-term sustainability.

This article examines the major provisions of the Trust Administration Act, 2026, explains the differences between the previous and current legal frameworks, identifies compliance obligations and provides practical guidance for individuals and organizations affected by the legislation.

1. Key Dates and Implementation Timeline

Understanding the commencement and transitional dates is essential for trustees and organizations seeking to comply with the new legislation.

The 24-month transitional period is particularly important for trusts established under the repealed legislation or through deeds registered under the Registration of Documents Act.

Although existing rights, obligations and appointments are preserved, affected trusts must take steps to comply with the new statutory framework.

2. What Has Changed Under Kenya’s Trust Administration Act, 2026?

The new Act fundamentally changes how trusts are established, regulated and administered in Kenya.

Comparison of the previous trust law framework and the new legislation

These changes demonstrate a shift from a largely deed-based and judicially supervised framework toward a structured statutory system with centralized registration, disclosure and ongoing compliance obligations.

3. Creation, Validity and Revocability of Trusts in Kenya

3.1 Legal elements required to establish a trust — Section 4

Under Section 4, a trust exists where identifiable property is placed with a trustee, or where the owner declares that property is held on trust, for the benefit of beneficiaries or for a specified lawful purpose.

The arrangement must include a trustee responsible for administering the trust property in accordance with its governing terms.

This provision provides statutory clarity on the essential elements required for the establishment of a legally recognized trust.

3.2 Written trusts and implied trusts — Section 5

The legislation recognizes both written and implied trusts.

However, written trusts must be registered or incorporated under the Act.

Section 5(2)–(3) provides that an unregistered written trust is not enforceable, subject to the court’s authority under Section 5(4) to recognize or enforce such a trust upon application by a person claiming an interest.

This represents a major departure from the previous position, where private trust deeds could often operate without compulsory registration.

Individuals relying on existing unregistered trust deeds should therefore assess their legal position and take appropriate steps toward compliance.

3.3 Grounds upon which a trust may be invalid — Section 6

The Act identifies circumstances in which a trust may be declared invalid.

These include situations where:

• The trust has an unlawful purpose.

• There is no ascertainable beneficiary, except in the case of a non-charitable purpose trust.

• The trust was established through fraud, duress or misrepresentation.

• The trust terms are uncertain.

• The settlor lacked the necessary legal capacity.

• The trust has not been registered as required by law.

The court may also set aside a trust established to defeat creditors.

Where only part of a trust arrangement is invalid, the court may preserve the lawful provisions where appropriate.

3.4 Irrevocability of trusts — Section 7

One of the most important estate-planning changes introduced by the Act is the presumption that a trust is irrevocable.

A trust will remain irrevocable unless its deed expressly reserves a power of revocation.

Where a settlor establishes a revocable trust but does not exercise the reserved power before death, the trust becomes irrevocable upon the settlor’s death.

This provision makes careful drafting particularly important for individuals seeking flexibility in the management of their estates and assets.

3.5 Trust property and proceeds of crime — Section 35

The Act expressly prohibits illegally acquired property from forming part of a trust.

Property connected to unlawful activities may be subject to recovery or forfeiture under the Proceeds of Crime and Anti-Money Laundering Act.

This provision strengthens the relationship between trust administration, financial transparency and Kenya’s anti-money laundering obligations.

4. Types of Trusts Recognized Under Kenyan Law

The Trust Administration Act, 2026 formally recognizes three principal categories of trusts.

4.1 Charitable trusts — Section 8

A charitable trust is established exclusively for lawful charitable purposes benefiting the public.

Recognized charitable objectives include:

• Relief of poverty.

• Advancement of education.

• Advancement of religion.

• Promotion of human rights.

• Environmental protection.

• Other purposes serving the public benefit.

Minimum trustees: At least three natural persons or one corporate trustee.

4.2 Non-charitable purpose trusts — Section 9

A non-charitable purpose trust may be established for a specific, lawful and achievable objective that does not necessarily involve identifiable beneficiaries.

Examples may include social, cultural or legacy-related purposes.

The trust deed must specify how surplus assets will be distributed or otherwise dealt with upon termination.

Minimum trustees: At least three natural persons or one corporate trustee.

4.3 Family trusts — Section 10

Family trusts are particularly relevant to succession planning, intergenerational wealth preservation and estate administration.

A family trust may be established during the settlor’s lifetime or through testamentary arrangements.

Its purposes may include managing an individual’s estate, preserving family wealth or creating wealth for future generations.

The Act provides that:

• A family trust must be non-trading.

• Beneficiaries do not necessarily have to be related to the settlor.

• The settlor may also be a beneficiary.

• A family trust requires at least one trustee.

This statutory recognition provides an important legal framework for families seeking structured estate planning and succession arrangements.

4.4 Residency and corporate trustee requirements — Sections 11 and 36

Where trustees are natural persons, at least one must be a Kenyan citizen or resident.

Corporate trustees must be incorporated in Kenya, have the provision of trustee services as their principal object and appoint a local contact person resident in Kenya.

The licensing of corporate trustees is to be prescribed through Regulations.

5. Rights and Reserved Powers of Settlors

Sections 12–13

A settlor is the person who establishes a trust and places property within the trust arrangement.

Under the Act, a settlor must possess contractual capacity.

The legislation expressly allows a settlor to act simultaneously as a trustee, beneficiary or enforcer, although the settlor cannot be the sole beneficiary.

Section 13 permits a settlor to reserve several powers, including:

1. Revoking or varying the trust.

2. Directing distributions of trust income or capital.

3. Giving directions concerning investments.

4. Directing dealings with trust property.

5. Appointing or removing trustees.

6. Appointing or removing enforcers.

7. Appointing or removing beneficiaries and trust agents.

8. Restricting the exercise of trustee powers.

The reservation of such powers does not automatically make the settlor a trustee.

The Act also permits delegation of reserved powers.

For estate-planning purposes, these provisions provide greater certainty regarding the extent to which a settlor may retain control over trust arrangements.

Nevertheless, excessive retention of control may undermine the independence and integrity of the trust and potentially affect its asset-protection or tax objectives.

Professional legal and tax advice is therefore important when structuring reserved powers.

6. Enforcers: A New Oversight Mechanism for Trusts

Sections 14–18

The Act introduces statutory recognition of an enforcer, a person appointed to oversee the administration of a trust.

An enforcer may perform several important governance functions, including monitoring implementation of the trust deed, requiring trustees to remedy breaches, reporting misconduct and initiating legal proceedings against trustees where appropriate.

Enforcers are also entitled to access relevant trust documents, accounts and information.

Appointment and legal restrictions

The appointment of an enforcer is optional under Section 14(2).

However, once appointed, the Registrar must be notified within 21 days.

An enforcer cannot simultaneously serve as a trustee of the same trust.

The Act also provides protection from liability, except in circumstances involving fraud, dishonesty or wilful misconduct.

Importance of enforcers in trust governance

Enforcers may be particularly valuable in non-charitable purpose trusts, where identifiable beneficiaries may not exist to monitor trustee conduct.

They may also strengthen governance in long-term family trusts by providing independent oversight and helping ensure adherence to the settlor’s objectives.

7. Beneficiaries and Their Legal Rights

Sections 19–21

Beneficiaries are persons entitled to benefit from a trust.

Under Section 19, beneficiaries must be named or otherwise identifiable.

Identification may be based on individuals, classes of persons or specified relationships, including spouses, children and descendants.

The Act also recognizes gifts to classes of beneficiaries and permits beneficiaries to disclaim an interest in trust property.

These provisions provide clarity concerning the identification and treatment of beneficiaries under trust arrangements.

8. Registration of Trusts in Kenya Under the Trust Administration Act, 2026

Sections 22–27

Trust registration is one of the central requirements introduced by the new legislation.

Applications are submitted to the Registrar of Trusts.

8.1 Documents required for trust registration

An application must be accompanied by the relevant statutory documentation, including:

• A trust deed signed by the settlor or authorized representative and trustees, duly witnessed.

• The prescribed registration fee.

• A register of beneficial owners.

• A statement identifying the initial trust property.

• Details and acceptance of any initial enforcer.

• Relevant court orders, where applicable.

• Particulars of the trust category and purpose.

• Identification of relevant parties.

• The registered address of the trust or its trust agent.

8.2 Minimum requirements for a trust deed — Section 23

Section 23 establishes minimum contents for trust deeds.

These include the type and purpose of the trust, identification of trust property, trustee particulars and acceptance, procedures for appointment and removal of trustees, and provisions concerning beneficiaries.

Trust deeds prepared before commencement of the Act should be reviewed to establish whether they satisfy the new statutory requirements.

8.3 Certificate of registration

Under Section 27(1), a certificate of registration constitutes conclusive evidence that a trust has been registered.

However, Section 27(2) clarifies that a registered trust does not acquire separate legal personality.

Registration may only be revoked by court order under Section 26.

9. Incorporation of Trusts in Kenya

Sections 28–33

The Act expands the availability of incorporation beyond the categories previously recognized under the Trustees (Perpetual Succession) Act.

Under the new framework, any trust may elect to become incorporated.

9.1 Incorporation procedure

The process begins with reservation of the proposed trust name under Section 28.

The applicant must then submit an incorporation application containing the prescribed information, including beneficial ownership details.

Following successful incorporation, the Registrar issues a certificate of incorporation.

Under Section 30(4), the certificate constitutes conclusive evidence of due incorporation.

9.2 Legal consequences of incorporation

Section 32 provides that an incorporated trust becomes a body corporate with perpetual succession.

It may:

• Sue and be sued in its own name.

• Hold property in its own name.

• Deal with property as permitted by law.

• Continue existing notwithstanding changes in trustees.

Section 33 also permits a registered trust to convert into an incorporated trust at any time.

Registered trust versus incorporated trust

The central distinction is that registration alone does not confer separate legal personality, while incorporation does.

This distinction should be considered when establishing trusts intended to hold significant assets, administer institutional property or operate over multiple generations.

10. Qualification, Appointment and Removal of Trustees

Sections 36–42

Trustees are responsible for administering trust property and carrying out the purposes of the trust.

The Act establishes eligibility requirements and formal procedures governing their appointment, resignation, removal and replacement.

10.1 Trustee qualifications — Section 36

An individual trustee must be at least 18 years old.

Persons disqualified from acting as trustees include:

• Individuals disqualified from acting as company directors or liquidators.

• Persons of unsound mind.

• Undischarged bankrupts.

• Persons convicted of offences punishable by imprisonment exceeding six months.

• Persons convicted of corruption or economic crimes.

10.2 Notification requirements

Appointments, resignations, removals and replacements of trustees must be notified to the Registrar within 21 days.

Failure to comply may attract prescribed penalties.

10.3 Continuity of trusts

Section 42 provides that changes in trustees do not affect the continued existence of a trust or its rights and obligations.

This protects continuity in the administration of trust property.

11. Statutory Duties and Responsibilities of Trustees in Kenya

Sections 43–49

One of the most important reforms introduced by the Act is the codification of trustee duties.

Trustees must exercise reasonable care, skill and diligence when carrying out their responsibilities.

11.1 Duty of care, good faith and diligence — Section 43

Trustees must understand and comply with the trust deed, act honestly and in good faith, and administer the trust in the interests of its beneficiaries or lawful purpose.

They must also exercise reasonable care, skill and diligence.

11.2 Avoidance of conflicts of interest

Trustees must avoid conflicts between personal interests and their fiduciary obligations.

They are also required to act impartially between beneficiaries.

11.3 Acting within authorized powers — Section 44

Trustees must exercise only those powers granted under the trust deed or applicable law.

11.4 Prohibition against unauthorized profit — Section 45

Trustees must not obtain unauthorized personal benefits, whether directly or indirectly, through their position.

Exceptions may arise where remuneration or benefits are authorized by the trust deed, the court or the Act.

11.5 Preservation of trust property — Section 46

Trustees must take appropriate measures to preserve and protect trust property.

11.6 Separation of trust property — Section 47

Trust assets must be kept separate from trustees’ personal property.

Trust bank accounts and investments must be identifiable as belonging to the trust.

11.7 Record-keeping and disclosure — Sections 48–49

Trustees must maintain proper records and respond to authorized requests for information within the prescribed timelines.

These duties establish clear expectations concerning governance, financial accountability and responsible asset management.

12. Statutory Powers of Trustees

Sections 50–59

The Act establishes a framework of trustee powers that operate subject to the provisions of the trust deed.

These powers include:

1. Maintenance and accumulation of income during a beneficiary’s minority.

2. Management and control of trust property.

3. Delegation of specified responsibilities.

4. Appropriation of trust property.

5. Sale and leasing of property.

6. Borrowing.

7. Distribution of trust assets.

8. Commencing, defending and settling legal claims.

9. Granting powers of attorney.

10. Obtaining insurance.

Under Section 58, powers of attorney granted by trustees must be notified to the Registrar within 21 days.

Investment powers and responsibilities

Trustees should not assume that investment powers available under the repealed Trustee Act automatically continue to apply.

Investment authority should be examined against the trust deed and applicable law.

Trustees should consider investment risks, liquidity requirements, beneficiary interests, potential conflicts and the need for prudent management.

Older trust deeds that rely on the former statutory list of authorized investments should be reviewed.

13. Trustee Remuneration, Breach of Trust and Liability

Sections 60–62

13.1 Remuneration of trustees — Section 60

Trustees may receive remuneration where authorized by:

• The trust deed.

• Written consent of every beneficiary or an enforcer.

• A court order.

• Written law.

Trustees may also recover properly incurred expenses and liabilities from trust property.

13.2 Liability for breach of trust — Section 61

A trustee who commits or participates in a breach of trust may be liable for resulting financial losses, depreciation of trust property or lost profits.

The Act also provides for administrative penalties.

13.3 Restrictions on exclusion of liability — Section 62

A trust deed cannot exclude trustee liability arising from dishonesty, wilful misconduct or gross negligence.

This reinforces the fiduciary obligations imposed upon trustees and limits attempts to avoid accountability through contractual provisions.

14. Trust Records, Accounting Requirements and Beneficial Ownership Disclosure

Sections 63–69

The Act introduces comprehensive record-keeping and beneficial ownership obligations.

14.1 Trust records — Section 63

Trusts must maintain records including certificates of registration or incorporation, trust deeds and amendments, particulars of relevant parties, and lists of trust property.

Information concerning settlors, trustees, beneficiaries, enforcers and beneficial owners must also be maintained.

These records must be retained for at least seven years.

14.2 Accounting records — Section 64

Trustees must maintain accounting records sufficient to explain trust transactions and disclose the trust’s financial position with reasonable accuracy.

These records must also be retained for at least seven years.

14.3 Beneficial ownership registers — Sections 65–66

Every trust must maintain a register identifying the natural persons who ultimately own or control it, including those exercising ultimate effective control.

A copy of the register must be lodged with the Registrar.

Trusts incorporated before commencement have 24 months to lodge their registers, subject to any extension permitted by the Registrar.

14.4 Changes in beneficial ownership — Section 67

Changes in beneficial ownership information must be recorded and lodged within 21 days.

14.5 Retention of beneficial ownership information — Section 68

Beneficial ownership records must be retained for at least seven years after a person ceases to be a beneficial owner.

14.6 Consequences of non-compliance — Section 69

Persistent failure to comply with beneficial ownership requirements may result in administrative penalties and the disqualification of trustees.

These requirements reflect Kenya’s increasing emphasis on transparency, accountability and the prevention of misuse of legal arrangements.

15. Annual Returns for Registered and Incorporated Trusts

Section 75

Every registered or incorporated trust must file an annual return with the Registrar within 30 days after each anniversary of its registration or incorporation.

The penalty for default is KES 3,000 for each year of default.

This represents a significant new recurring obligation for private and family trusts, which previously did not face comparable general annual filing requirements.

Trustees should establish compliance calendars and assign responsibility for preparing and submitting statutory returns.

16. Trust Agents and Their Responsibilities

Section 76

The Act recognizes trust agents who may assist with the establishment and administration of trusts.

Their functions may include trust formation, registration, incorporation, regulatory compliance and lodgment of statutory documents.

Trust agents may also provide registered office services for family trusts.

For statutory functions, a trust agent must be:

• An Advocate of the High Court of Kenya.

• A Certified Secretary.

• A Certified Accountant.

The appointment or termination of a trust agent must be notified to the Registrar within 21 days.

Documents legally reserved for preparation by advocates must continue to be prepared by advocates.

Importantly, the appointment of a trust agent does not relieve trustees of their fiduciary responsibilities.

17. The Registrar of Trusts and Regulatory Oversight

Sections 77–83

The Act establishes the Office of the Registrar of Trusts within the Business Registration Service.

The Registrar is responsible for maintaining the Register of Trusts and overseeing compliance with the legislation.

Its responsibilities include registration and incorporation, issuance of certificates, rectification of records, receipt of annual returns and statutory filings, and the dissolution and restoration of trusts.

The Registrar may also request information, issue compliance directives, impose administrative sanctions and initiate trustee disqualification procedures.

Under Section 99(3), certificates previously issued under the repealed Trustees (Perpetual Succession) Act may be recalled and replaced.

Access to information and data protection

Section 78 regulates access to and disclosure of information held by the Registrar.

Section 91 requires the processing of personal data to comply with the Data Protection Act, 2019.

Section 90 permits electronic filing of statutory documents.

18. Dissolution and Restoration of Trusts

Sections 84–89

The Act establishes procedures governing the dissolution and restoration of trusts.

A trust may be dissolved by the Registrar following an application by a trustee or settlor, pursuant to a court order, or where its purpose has been fulfilled, ceased to exist or become impossible to achieve.

18.1 Dissolution procedure — Section 84

The Registrar must publish a notice in the Kenya Gazette inviting objections within three months.

Dissolution takes effect upon publication of a further notice.

18.2 Withdrawal of dissolution applications — Section 85

An application for dissolution may be withdrawn before dissolution takes effect.

18.3 Restoration of trusts — Sections 86–87

The Registrar may restore a trust dissolved by mistake.

The High Court may also order restoration of a dissolved trust.

18.4 Distribution of trust property — Section 89

Upon dissolution, trust property must be dealt with in accordance with the trust deed or, where the deed does not provide guidance, as directed by the court.

Trustee liabilities survive dissolution.

19. Criminal Offences, Dispute Resolution and Regulations

Sections 92–96

19.1 Submission of false or misleading information — Section 92

Knowingly lodging materially false or misleading information constitutes an offence.

The maximum punishment is a fine of KES 1,000,000, imprisonment for up to two years, or both.

19.2 General penalties — Section 93

Where no specific penalty is provided, the Act prescribes a general maximum fine of KES 1,000,000.

19.3 Resolution of trust disputes — Section 94

Disputes must first be addressed through the mechanism established in the trust deed.

Where no applicable mechanism exists, the High Court has jurisdiction.

Settlors should therefore consider incorporating dispute-resolution provisions, including mediation or arbitration, when drafting trust deeds.

19.4 Regulations — Section 96

The Attorney General is empowered to develop Regulations addressing matters such as statutory forms, fees, document lodgment, beneficial ownership, corporate trustee licensing, disqualification, electronic filing, access to information and exemptions.

As at 9 October 2026, the newsletter reports that implementing Regulations had not been published.

20. Consequential Amendments and Transitional Provisions

Sections 97–99

The Trust Administration Act, 2026 makes consequential amendments to existing legislation and establishes transitional arrangements.

20.1 Registration of Documents Act — Section 97

The Registration of Documents Act is amended to provide for registration of trust deeds and deeds of appointment registered under the new Act.

20.2 Business Registration Service Act — Section 98

The Business Registration Service Act is amended to bring trusts within the statutory mandate of the BRS.

20.3 Existing trusts — Section 99

Trusts incorporated under Cap. 164 and trusts created through deeds registered under the Registration of Documents Act are deemed to be trusts under the new legislation.

Existing rights, liabilities and appointments remain preserved.

However, existing trusts must comply with the new framework within 24 months of commencement or within another period directed by the Registrar.

20.4 Tax treatment of family trusts

The Act preserves the existing tax treatment of registered family trusts under the Income Tax Act and the Stamp Duty Act.

However, it does not establish a new general tax exemption.

The tax consequences of transferring assets into trusts, administering trust property and distributing trust assets must therefore be assessed individually.

21. Summary of Key Trust Compliance Obligations and Penalties in Kenya

The following table provides a consolidated overview of the principal statutory obligations.

Trustees should treat these obligations as part of their ongoing governance responsibilities rather than as one-time registration requirements.

22. Practical Compliance Guide for Existing Trusts in Kenya

The transition to the new legislation requires proactive preparation.

22.1 Recommendations for trustees of existing trusts

Conduct a comprehensive trust audit. Establish whether the trust was incorporated under Cap. 164, registered under the Registration of Documents Act or remains unregistered.

Unregistered written trusts may face particularly significant enforceability risks.

Review the trust deed. Examine the document against the minimum requirements of Section 23, including provisions concerning trustee appointments, investment powers, remuneration, revocability and dispute resolution.

Amendments should be considered where necessary.

Assess trustee composition. Confirm that the trust meets the minimum number of trustees and applicable residency requirements.

Charitable and non-charitable purpose trusts generally require at least three natural-person trustees or one corporate trustee.

Prepare beneficial ownership information. Compile the relevant register and obtain supporting identification documents early in the transitional period.

Establish a compliance calendar. Record annual return deadlines, 21-day notification obligations and document retention requirements.

22.2 Recommendations for settlors and families planning succession

Individuals considering the establishment of family trusts should evaluate whether registration or incorporation best serves their objectives.

Only incorporation confers separate legal personality.

Settlors wishing to retain powers over trust arrangements should expressly reserve them in the trust deed.

This is especially important where revocation is intended, given the statutory presumption of irrevocability.

The appointment of an independent enforcer may strengthen governance, particularly in long-term family and purpose trusts.

Professional tax advice should also be obtained concerning asset transfers, trust administration and distributions, since the Act does not create a general tax exemption.

22.3 Recommendations for charities, religious organizations and NGOs

Charitable and institutional trusts incorporated under the repealed Cap. 164 continue to exist under the new legislation.

However, they must regularize their position within the prescribed transitional period.

This includes compliance with beneficial ownership requirements and obtaining replacement certificates where the Registrar recalls certificates issued under the previous legislation.

Charities, religious organizations and NGOs operating through trusts should also review their governance structures, trustee composition, internal records and reporting arrangements.

23. Why the Trust Administration Act, 2026 Matters for Estate Planning and Corporate Governance

The reforms have important implications beyond the registration of trusts.

For families, the legislation creates a more structured legal environment for succession planning and wealth preservation.

For charitable organizations and NGOs, it strengthens the governance and accountability framework under which trust property is administered.

For trustees, it clarifies statutory duties while increasing exposure to financial penalties and liability for breaches of trust.

For legal practitioners and professional advisers, it creates new requirements concerning trust documentation, beneficial ownership, compliance monitoring and the selection of appropriate trust structures.

The recognition of enforcers and trust agents also introduces additional governance and administrative mechanisms.

At the same time, the expanded incorporation framework allows a wider range of trusts to acquire separate legal personality.

These developments collectively demonstrate the importance of sound governance, proper documentation, regulatory compliance and responsible management of trust property.

24. Frequently Asked Questions About Trust Registration in Kenya

Is trust registration mandatory in Kenya under the Trust Administration Act, 2026?

Yes. The Act requires written trusts to be registered or incorporated. An unregistered written trust may be unenforceable, although the court retains authority to recognize or enforce such a trust in appropriate circumstances.

What is the deadline for existing trusts to comply?

Existing trusts are generally required to comply within 24 months from commencement on 25 September 2026, placing the transitional deadline in September 2028, unless the Registrar directs another period.

Can a family trust have only one trustee?

Yes. Under Section 11, a family trust requires at least one trustee.

Can a settlor also be a beneficiary?

Yes. The Act permits a settlor to be a beneficiary, trustee or enforcer, but the settlor cannot be the sole beneficiary.

Are trusts automatically revocable in Kenya?

No. Under Section 7, trusts are irrevocable unless the trust deed expressly reserves a power of revocation.

What is the difference between a registered and incorporated trust?

A registered trust does not acquire separate legal personality. An incorporated trust becomes a body corporate with perpetual succession and may hold property, sue and be sued in its own name.

Are trusts required to disclose beneficial owners?

Yes. Every trust must maintain and lodge a beneficial ownership register identifying the relevant natural persons who ultimately own or control the trust.

How quickly must changes in beneficial ownership be reported?

Changes must be recorded and lodged with the Registrar within 21 days.

Do trusts have to file annual returns?

Yes. Registered and incorporated trusts must file annual returns within 30 days after each anniversary of registration or incorporation.

What is the penalty for late annual returns?

The Act provides for a penalty of KES 3,000 for each year of default.

Can trustees receive remuneration?

Yes, where authorized by the trust deed, written consent of every beneficiary or an enforcer, a court order or written law.

What penalties apply to breaches of trust?

Trustees may be liable for resulting losses, depreciation and lost profits. Administrative penalties may also reach KES 1 million for individual trustees and KES 5 million for corporate trustees.

Can a trust be established for a purpose without identifiable beneficiaries?

Yes. The Act recognizes non-charitable purpose trusts established for specific, lawful and achievable purposes.

Who regulates trusts in Kenya?

The Registrar of Trusts, established within the Business Registration Service, is responsible for registration, incorporation, statutory filings and regulatory oversight.

Does the Act create new tax exemptions for family trusts?

No. The Act preserves existing tax treatment for registered family trusts under the relevant tax legislation but does not establish a new general tax exemption.

25. Conclusion: Preparing for the Future of Trust Administration in Kenya

The Trust Administration Act, 2026 represents a fundamental transformation of Kenya’s trust law framework, bringing together previously fragmented legal provisions into a modern statutory system emphasizing registration, transparency, governance and accountability.

By establishing the Registrar of Trusts, introducing comprehensive beneficial ownership requirements, codifying trustee duties and expanding the availability of incorporation, the legislation provides greater legal certainty for the establishment and administration of trusts.

The formal recognition of family trusts, charitable trusts and non-charitable purpose trusts also creates opportunities for more structured estate planning, intergenerational wealth preservation, charitable administration and institutional governance.

However, these opportunities are accompanied by substantially increased compliance responsibilities.

Trustees must now pay particular attention to statutory filings, beneficial ownership disclosure, annual returns, record retention, fiduciary obligations and the potential consequences of non-compliance.

The 24-month transitional period provides existing trusts with an opportunity to review and regularize their legal arrangements.

Nevertheless, the complexity of the reforms means that delaying compliance preparations may expose trustees and institutions to avoidable legal and administrative risks.

As implementing Regulations are developed, trustees, settlors, beneficiaries and professional advisers should continue monitoring regulatory developments and reviewing their trust structures.

Ultimately, effective implementation of the Trust Administration Act, 2026 will depend not merely on formal registration but on establishing strong governance systems, maintaining accurate records, ensuring transparency and upholding the fiduciary principles upon which trusts are founded.

For families, charities, NGOs, religious institutions, corporate trustees and estate-planning professionals, early preparation and informed legal guidance will be essential to achieving compliance and safeguarding trust assets under Kenya’s new legal framework.

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