Reviewed 23 September 2026. The Act is enacted and commences on 25 September 2026; it is not yet in force on this review date.
Kenya’s Trust Administration Act, 2026 makes this a timely moment for families, business owners and trustees to review how wealth is owned, managed and passed on. The questions are practical: who controls decisions, which assets belong to the trust, who benefits, and whether the documents support the family’s intentions.
The Act creates a framework covering establishment, registration, incorporation, administration and beneficial ownership. From commencement, section 99 repeals the Trustees (Perpetual Succession) Act and the Trustees Act, subject to savings and transition provisions. Existing arrangements therefore require a considered review; the change does not mean that every existing trust must start again.
1. Registration and incorporation serve different purposes
Under sections 22–24, registration involves prescribed documents and information, including the trust deed, initial property and beneficial ownership register. Section 27 expressly distinguishes registration from legal personality: registering a trust does not itself make it a separate legal person.
Incorporation follows a separate process under sections 28–30. Section 32 gives an incorporated trust corporate status and perpetual succession. The appropriate route should follow the purpose, property, administration and continuity needs of the arrangement.
Avoid assuming that every unregistered arrangement is automatically void. Section 5 contains both an enforceability rule for written trusts and a route for an interested person to seek court recognition or enforcement. The Act’s scope also needs to be considered for trusts arising through other legal mechanisms.
2. Start with family objectives and suitable trustees
A family trust should answer a specific need: providing for dependants, coordinating family wealth, planning business succession or establishing decision-making arrangements across generations. Section 10(2)(c) makes it a non-trading entity. That distinction matters when considering how operating businesses and investments fit within the structure.
Section 11 provides for at least one trustee for a family trust. Where trustees are natural persons, at least one must be a Kenyan citizen or resident in Kenya as prescribed. Different minimum arrangements apply to charitable and non-charitable purpose trusts; their requirements should not be copied indiscriminately into family-trust advice.
Legal eligibility is only the starting point. Consider competence, availability, independence, conflicts, replacement and practical access to records. A trusted relative may still need accounting, investment or legal support to administer the arrangement properly.
3. Draft the deed around actual decisions
A useful deed needs more than names and a broad purpose. It should make clear who may benefit, the scope of trustee discretion, how decisions are taken, how conflicts are managed and what happens when a trustee dies, resigns or becomes unable to act.
Review distribution principles, investment powers, recordkeeping, amendments and termination. Where an enforcer or other oversight role is relevant, its powers and interaction with trustees need deliberate drafting.
For a family business, separate share ownership from management. The trust deed, company articles and shareholders’ agreement should work together on voting, dividends, transfers and succession. A trust holding shares does not remove the company’s own governance obligations.
4. Complete the asset work
Signing a deed does not prove that every intended asset has been effectively placed in the trust. Prepare an asset schedule showing present ownership, proposed ownership, value, restrictions, liabilities and the steps needed to complete the arrangement.
Property, shares and bank or investment accounts require different implementation checks. Depending on the asset, consider title records, transfer instruments, shareholder restrictions, lender or spousal consents, applicable taxes and registry or financial-institution requirements.
Keep completion evidence with the trust records. The family’s plan should identify what has actually been implemented and what remains outstanding. A trust should not be marketed as automatically defeating creditors, existing security, matrimonial interests or other lawful claims.
5. Treat disclosure and administration as continuing work
Sections 65–69 address beneficial ownership information. This makes accurate identification and maintenance of the relevant persons part of administration. Family privacy should not be confused with exemption from lawful disclosure.
Section 67 requires an updated beneficial ownership register to be lodged within 21 days after making a change. Section 75 requires an annual return within 30 days after the anniversary of registration or incorporation. Trustees need a calendar and a clear allocation of responsibility for identifying changes, maintaining evidence and making filings.
Keep trustee resolutions, accounts, distributions and asset records together. Update records when family circumstances, trustees, beneficiaries or control arrangements change. These records help explain decisions and reduce future disputes.
6. Existing trusts: review the transition carefully
Section 99 preserves duly incorporated trusts and trusts created through registration of their deeds under the Registration of Documents Act. It also provides for pre-existing trusts to comply within 24 months of commencement, or within a period directed by the Registrar. Section 66(2) separately addresses lodging beneficial ownership registers for existing incorporated trusts within 24 months.
Begin with the existing deed, incorporation or registration evidence, trustee appointments, asset records and available beneficial ownership information. Identify which provisions affect the arrangement and what requires amendment, filing or operational change.
Do not substitute a universal “re-register immediately” instruction for this analysis. Equally, a transition period is a planning window: the necessary information, consents and asset corrections may take time to assemble.
7. Tax relief requires transaction-specific analysis
A family trust is not universally tax-free. The Income Tax Act’s principal-sum exemption is distinct from the treatment of income earned by the trust. Specific capital-gains reliefs may apply to qualifying contributions and property transfers; they should not be extended automatically to later disposals or distributions. Stamp-duty treatment also requires review of the particular instrument and statutory conditions.
KRA’s Finance Act 2026 guidance explains that income received by trustees, executors or administrators is treated as their income for tax purposes, with protection against taxing the beneficiary again on the same income where tax has already been paid. That is different from exempting the underlying earnings.
Obtain advice on the assets, income, parties’ residence and proposed transactions before implementation. The trust’s non-trading status does not itself settle the tax position.
8. Coordinate wills and any foreign advice
Trust planning and wills should be reviewed together. Consider assets outside the trust, intended lifetime and testamentary arrangements, appointments and any conflicting provisions. A trust does not automatically resolve every succession question.
For Kenyans living abroad, or families with beneficiaries or assets in Europe, begin with the actual countries involved. Residence, asset location and applicable succession, tax and reporting rules can materially change the analysis. Europe is not a single trust jurisdiction.
Kenyan counsel can address the Kenyan structure and implementation while coordinating separately scoped advice from suitably qualified professionals in the relevant foreign jurisdiction.
Request a Trust Structure and Compliance Review
S.N. Nyaga & Company Advocates can assist with new trust formation, existing-trust compliance, trustee and beneficiary governance, and coordination of Kenya-connected cross-border matters.
A defined review can cover the objectives and ownership structure, deed and governance gaps, transition and disclosure requirements, asset implementation and the questions requiring separate tax or foreign advice. Scope, fees and responsibilities are agreed before work begins.
Request a Trust Structure and Compliance Review. Start with a non-confidential outline of the arrangement, relevant countries and the decision you need to make.
Primary sources
- Trust Administration Act, 2026 — official BRS text, particularly sections 5, 11, 22–32, 65–69, 75 and 99.
- Income Tax Act — Kenya Law, including First Schedule reliefs; read with subsequent amendments.
- KRA: Finance Act 2026 — What It Means for You.
- KRA: Capital gains tax exemptions and exclusions.
- Stamp Duty Act — Kenya Law, including sections 52 and 117.
General information reviewed on 23 September 2026. The Trust Administration Act commences on 25 September 2026. Application to a particular arrangement requires assessment of its documents, assets and circumstances, together with applicable implementation requirements.