Kenya's Trust Law Enters a New Regulatory Era

The Act was assented to on 8 September 2026 and published in the Kenya Gazette Supplement No. 223. It repeals the Trustees (Perpetual Succession) Act (Cap. 164) and the Trustee Act (Cap. 167), bringing the regulation of trusts under one principal legislative framework.

For families, entrepreneurs, investors, trustees, charitable organizations and professional advisers, this is more than a change of terminology. The new framework introduces formal registration, beneficial ownership disclosure, continuing statutory filings, trustee governance requirements and a formal role for trust agents.

In practical terms, creating a trust is no longer simply a matter of preparing and executing a trust deed and administering the trust privately. Compliance with the new statutory framework is now an ongoing responsibility.

The Big Change

1. Written Trusts Must Now Be Registered or Incorporated

One of the most significant changes under the Act is the formal registration regime.

A written trust must be registered or incorporated under the new Act. A written trust that has not been registered or incorporated is generally not enforceable, although the Act allows a person claiming an interest under such a trust to apply to court for recognition or enforcement.

This changes the practical approach to trust establishment.

Previously, families could establish private trust structures primarily through the execution of a trust deed and subsequent administration of the trust assets. Under the new framework, registration or incorporation becomes a central part of establishing and maintaining an enforceable written trust.

Types of Trusts

2. What Types of Trusts Are Recognized?

The Act expressly recognizes three principal categories of trusts:

A. Charitable Trusts

A charitable trust is established exclusively for charitable purposes, including purposes such as:

• Relief of poverty;
• Advancement of education;
• Advancement of religion;
• Promotion of human rights and fundamental freedoms;
• Environmental protection; and
• Other purposes beneficial to the general public.

This creates a statutory framework for organizations and wealth owners seeking to structure philanthropic activities through trusts.

B. Non-Charitable Purpose Trusts

The Act expressly recognizes non-charitable purpose trusts.

These trusts may be established for a specific lawful purpose even where there is no identifiable beneficiary.

The purpose must be sufficiently specific, lawful, and capable of fulfilment, with the trust deed addressing the treatment of remaining assets when the trust comes to an end.

C. Family Trusts

Family trusts may be living or testamentary trusts established for planning or managing personal estates and for the preservation or creation of wealth across generations.

Registrar of Trusts

3. Who Registers Trusts Under the New Law?

The Act establishes the office of the Registrar of Trusts within the Business Registration Service (BRS).

The Registrar maintains the Register of Trusts and oversees the statutory registration framework.

The BRS has officially listed the Trust Administration Act, 2026 among the legislation administered within its framework.

This is an important institutional change because trust registration is now positioned alongside Kenya's wider formal business-registration infrastructure.

Registration vs Incorporation

4. Registration vs Incorporation: Why the Distinction Matters

This is one area where professional advice becomes particularly important.

A trust initially registered can subsequently apply for incorporation.

For a family considering a trust to hold land, investment portfolios, business interests or other significant assets, the registration-versus-incorporation question should therefore be addressed at the structuring stage, not after the trust has already been established.

Beneficial Ownership

5. Beneficial Ownership Is Now a Core Trust Compliance Obligation

The new framework introduces specific beneficial ownership requirements.

Every trust must compile and maintain a register of its beneficial owners and lodge the required information with the Registrar.

Changes to beneficial ownership must generally be lodged within 21 days.

This means trustees need to know:

• Who the relevant beneficial owners are;
• What information must be maintained;
• When changes trigger a filing;
• What supporting documentation should be retained; and
• How the information is securely maintained.

For private wealth structures, this makes governance and record management an essential component of trust administration.

Ongoing Compliance

6. Trust Administration Is Now an Ongoing Compliance Exercise

Registration is not the finish line.

The Act introduces continuing obligations, including:

Annual Returns

Trusts must file annual returns with the Registrar within 30 days of the anniversary of their registration or incorporation. A failure to file can attract an administrative penalty.

Changes in Trustees

Changes affecting trustees must be properly documented and notified to the Registrar within the applicable statutory period.

Beneficial Ownership Updates

Changes in beneficial ownership must be reported within the statutory timeline.

Record Keeping

Trustees are required to maintain prescribed records relating to matters including:

• Settlor information;
• Trustees;
• Beneficiaries;
• Enforcers;
• Beneficial owners;
• Trust deeds;
• Trust property; and
• Accounting records.

Specified records are generally required to be retained for at least seven years.

Transition

7. Existing Trusts: The 24-Month Transition Window

The new law does not simply wipe out existing trusts.

Trusts incorporated under the repealed Trustees (Perpetual Succession) Act and certain trusts created through registration under the Registration of Documents Act are deemed to be trusts under the new framework.

Existing trusts generally have 24 months from commencement of the Act to comply with the new requirements, subject to any direction or extension by the Registrar.

For a trust existing on 25 September 2026, the transition period therefore runs toward 25 September 2028, subject to the statutory framework and any direction or extension issued by the Registrar.

Trust Agent

8. The New Role of the Trust Agent

One of the notable innovations under the Act is the formal recognition of the trust agent.

A trust agent may assist with matters including:

• Trust formation and establishment;
• Preparation of registration or incorporation documentation;
• Trust compliance;
• Statutory filings;
• Provision of a registered office for a family trust where applicable; and
• Other statutory functions prescribed under the Act.

The Act recognizes advocates, certified secretaries and certified accountants as eligible trust agents.

Our Services

9. How D. Otunga & Associates Can Assist

At D. Otunga & Associates, we approach trusts not merely as legal documents, but as long-term wealth, governance, and succession structures.

As Private Wealth Counsel and Trust Agents, we can support clients through the lifecycle of a trust — from the initial structuring conversation through registration and continuing compliance.

A. Trust Structuring & Formation

We assist clients in determining the appropriate trust structure based on the intended purpose, including:

• Family wealth preservation;
• Succession and intergenerational planning;
• Estate management;
• Charitable purposes;
• Asset holding structures; and
• Lawful non-charitable purposes.

We work with the client to translate their objectives into an appropriate trust structure and governance framework.

B. Trust Deed Preparation and Review

A trust deed is no longer merely an instrument creating the relationship between settlor, trustees and beneficiaries. It is a central governance document.

We assist with drafting and reviewing provisions concerning:

• Powers and duties of trustees;
• Beneficiary rights and interests;
• Distribution mechanisms;
• Reserved powers of the settlor;
• Appointment and removal of trustees;
• Enforcers;
• Trust property;
• Governance procedures;
• Investment powers;
• Succession of trustees;
• Dispute resolution; and
• Termination and dissolution.

C. Registration and Incorporation

We assist clients through the applicable registration or incorporation process, including preparation and coordination of the required documentation.

This includes matters such as:

• Trust name and structure;
• Trust deed;
• Trustee documentation;
• Beneficial ownership information;
• Initial trust property;
• Enforcer documentation where applicable;
• Registered office requirements;
• Statutory forms and declarations; and
• Filing and follow-up with the Registrar.

D. Existing Trust Compliance Reviews

For existing trusts, we can conduct a Trust Compliance & Governance Audit.

This can include reviewing:

1. The existing trust deed;
2. Trustee composition;
3. Beneficiary arrangements;
4. Trust assets;
5. Beneficial ownership records;
6. Governance procedures;
7. Accounting and financial records;
8. Existing registration/incorporation documents;
9. Trustee resolutions and minutes;
10. Statutory filings; and
11. Compliance with the new Act.

We then prepare a practical remediation roadmap identifying what needs to be updated, filed, amended, or regularized.

E. Statutory Filings & Annual Compliance

We can act as an ongoing compliance partner for trustees by assisting with statutory filings and the annual compliance calendar. The objective is to ensure that statutory compliance does not become an annual scramble.

F. Private Wealth & Succession Planning

For families building wealth across generations, the trust should be considered alongside the broader estate plan.

We can advise on the legal architecture connecting:

• Wills
• Trusts
• Family Governance
• Asset Ownership
• Succession Planning
• Corporate Structures

This integrated approach can help families avoid fragmented planning where assets, companies, trusts and succession documents operate independently of one another.

Action Plan

10. What Should Trustees and Families Do Now?

If you already have a trust, or are considering establishing one, there are several practical steps worth taking.

For Existing Trusts:

1. Locate the trust documents — Bring together the trust deed, certificates, amendments, trustee resolutions, asset schedules, and other governance documents.
2. Review the trust against the 2026 Act — Identify provisions that may need updating to align with the new framework.
3. Review trustees — Confirm trustee eligibility, composition, residency/citizenship requirements where applicable, and governance arrangements.
4. Establish beneficial ownership records — Ensure the trust has the information necessary to compile and lodge its beneficial ownership register.
5. Review trust assets — Prepare an accurate schedule of trust property and verify ownership documentation.
6. Establish a compliance calendar — Record annual return deadlines and events that trigger statutory notifications.
7. Consider appointing a trust agent — A professional trust agent can take responsibility for coordinating the statutory compliance lifecycle.

The Strategic Shift

11. From Trust Creation to Trust Governance

Perhaps the biggest lesson from the new legislation is that trust formation and trust administration are now two parts of the same compliance lifecycle.

The question is no longer simply:

The better questions are:

• What type of trust is appropriate?
• Should it be registered or incorporated?
• Who should act as trustee?
• Who are the beneficiaries and beneficial owners?
• Should there be an enforcer?
• What assets should be settled into the trust?
• What governance mechanisms should be included in the deed?
• Who will manage the trust's statutory compliance over the years?

That is where professional private wealth counsel becomes valuable.

Your Private Wealth Counsel

D. Otunga & Associates | Your Private Wealth Counsel & Trust Agent

A well-structured trust can be an important component of succession and wealth planning.

But the trust deed is only the beginning.

The new Trust Administration Act places greater emphasis on registration, transparency, governance, record-keeping, and continuing compliance.

At D. Otunga & Associates, we assist individuals, families, entrepreneurs, and organizations with:

If you have an existing trust, the 24-month transition period is an opportunity to review the structure rather than wait for the deadline.

Your wealth deserves more than a document. It needs a structure, a strategy, and ongoing legal governance.