Kenya's Trust Administration Act, 2026: What Changes for Trusts, Trustees and Families

Why Kenya has a new trust law

Trusts are widely used in Kenya for family wealth, succession planning, investment structures, welfare schemes and charitable work. Until now, they were governed mainly by two older statutes: the Trustee Act, which set out trustees' powers, and the Trustees (Perpetual Succession) Act, which allowed trustees to incorporate as a body. Neither required most trusts to be registered, and neither required disclosure of who ultimately benefits.

The new Act changes that. It was signed into law on 8 September 2026 as part of a wider effort to strengthen Kenya's anti-money laundering framework, and its beneficial ownership rules bring trusts in line with the disclosure already required of companies. For families, businesses and organisations that use trusts, the practical effect is more formality, more filing and more transparency.

Registration or incorporation: what is the difference?

Every new written trust must now be either registered or incorporated under the Act. A written trust that is neither is unenforceable, although a person claiming an interest under it may apply to court for recognition or enforcement.

• Registration records the trust with the Registrar of Trusts. It does not give the trust a separate legal identity: the trustees continue to hold the trust property and act in their own names as trustees.
• Incorporation turns the trust into a body corporate with perpetual succession. An incorporated trust can sue and be sued and hold property in its own name, which simplifies matters when trustees change.

The Registrar of Trusts sits within the Business Registration Service (BRS), which will maintain the Register of Trusts. Which route suits a particular trust depends on its purpose, the property it holds and how long it is expected to last.

Who can be a trustee?

The Act sets out who may act as a trustee and, for some kinds of trust, how many trustees there must be.

• An individual trustee must be over 18 and not disqualified under the law.
• A corporate trustee must be a company incorporated in Kenya whose main object is providing trustee services, with a local contact person who is resident in Kenya.
• Charitable and purpose trusts require at least three individual trustees or one corporate trustee, while a family trust may have a single trustee.

The Act also introduces the role of enforcer: a person who may monitor the trust, require trustees to take remedial action, report breaches and take legal action. An enforcer cannot be a trustee of the same trust.

What trustees must now do

Trustees' duties were previously drawn largely from case law. The Act now states them expressly. Trustees must act with reasonable care, skill and diligence; act within their powers; preserve trust property; avoid conflicts of interest; keep trust property separate from their own; and keep adequate records.

Where trustees invest trust property, the Act expects proper due diligence, appropriate advice and periodic review. A trustee who commits or takes part in a breach of trust may be personally liable for the resulting loss, and a trust deed cannot exclude liability for dishonesty, wilful misconduct or gross negligence.

Beneficial ownership: the biggest change

Every trust must compile and maintain a beneficial ownership register and lodge a copy with the Registrar. A beneficial owner is the individual who ultimately owns or controls the trust, which is not always the same as a named beneficiary.

Changes to beneficial owners, trustees, enforcers, the trust deed or the trust's assets must be filed within 21 days. Beneficial ownership records must be kept for at least seven years after a person ceases to be a beneficial owner. Access to the register is limited to the trust's own parties, competent authorities and others authorised by law or court order; it is not a public list.

For businesses that already maintain beneficial ownership registers under the Companies Act, the concept will be familiar. For family trusts, it is a significant new obligation.

Annual returns and ongoing filings

Each registered or incorporated trust must file an annual return within 30 days of the anniversary of its registration or incorporation, and late filing attracts an administrative penalty. Together with the 21-day filing window for changes, this means a trust now needs a compliance calendar, much as a company does.

The Act also allows trust agents, namely advocates of the High Court, Certified Public Secretaries and certified accountants, to assist with trust formation, registration, incorporation and statutory filings.

What about existing trusts?

Trusts already in place are not cancelled. Trusts incorporated under the repealed Trustees (Perpetual Succession) Act, and trusts whose deeds were registered under the Registration of Documents Act, are treated as trusts under the new Act, and existing rights are preserved.

However, existing trusts must bring themselves into compliance within 24 months of 25 September 2026, that is, by around September 2028, unless the Registrar sets a different period. Existing incorporated trusts have the same 24 months to lodge their beneficial ownership registers. Trustees should not treat this as a reason to wait: deeds may need amendment, records may need rebuilding, and beneficial owners may need to be identified and confirmed.

What is still pending

Much of the detail depends on Regulations that have not yet been published. These are expected to cover the particulars to be recorded in the beneficial ownership register, forms and fees, electronic filing, requirements for corporate trustees and access to registers. Guidance from the Business Registration Service on how the filing timelines apply to existing trusts is also awaited. Trustees should watch for both.

Conclusion

The Trust Administration Act, 2026 moves trusts in Kenya from a largely informal arrangement to a regulated one, with registration, statutory duties, beneficial ownership disclosure and annual filing. Families, businesses and organisations that use trusts have time to adjust, but the work of reviewing deeds, identifying beneficial owners and setting up records is better started early than left to the end of the transition period.

Further reading: The Trust Administration Bill, 2026 (Mzalendo legislative tracker) · Business Daily: New law lifts secrecy on trust beneficiaries · Business Registration Service

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