Updated 24 September 2026: this article has been revised against the Act as published in the Kenya Gazette (Act No. 28 of 2026). The earlier version was written before publication and relied on reporting about the Bill; the points below now reflect the final text.
On 8 September 2026, President William Ruto assented to the Trust Administration Bill, 2026. The Trust Administration Act, 2026 (Act No. 28 of 2026) was published in Kenya Gazette Supplement No. 223 on 11 September 2026 and commences on 25 September 2026. It repeals the Trustees (Perpetual Succession) Act (Cap. 164) and the Trustee Act (Cap. 167) (section 99) and replaces them with a single framework for creating, registering, incorporating, administering and dissolving trusts. For families with trust-based succession plans, charities, corporate trustees and anyone holding land, shares or other assets through a trust, it changes real obligations, not just terminology.
Why Kenya rewrote its trust law
The old framework was split across two statutes. The Trustee Act set out general trustee powers in language largely unchanged since the 1920s, while the Trustees (Perpetual Succession) Act allowed trustees to incorporate. Many of the concepts in the 2026 Act are not new: amendments in 2021 (Act No. 13 of 2021) had already added charitable, non-charitable purpose and family trusts, enforcers and a presumption of irrevocability to the Trustees (Perpetual Succession) Act. What changes is the compliance model. Registration under the old law was optional; under the new Act a written trust must be registered or incorporated to be enforceable, and every trust must keep and lodge a register of its beneficial owners.
That gap mattered beyond estate planning. Kenya was placed on the Financial Action Task Force’s grey list in February 2024, and FATF Recommendation 25 requires countries to ensure authorities can obtain accurate beneficial ownership information on trusts. Our explainer on sanctions compliance and the FATF grey list covers the wider exit programme; the Act is Kenya’s answer to the trust-transparency piece of it.
Written trusts must now be registered or incorporated
The headline change is in section 5. A written trust must be registered or incorporated under the Act, and it is not enforceable unless it is. A court may also declare a trust invalid if it has not been registered or incorporated (section 6(1)(f)). A person claiming under an unregistered written trust can still apply to court for recognition or enforcement (section 5(4)), but that is a remedy, not a plan.
There are two routes:
- Registration (Part III). The application to the Registrar must include the trust deed, a copy of the register of beneficial owners and a statement of the initial trust property (section 22). The certificate names the trust with the words “Registered Trust” (section 24). A registered trust does not have legal personality (section 27(2)).
- Incorporation (Part IV). After name reservation, an incorporated trust becomes a body corporate with perpetual succession, able to sue and be sued and to hold property in its own name (section 32). A registered trust can later apply to incorporate (section 33).
The Registrar of Trusts is an office within the Business Registration Service (section 77), not the Registrar of Companies as some early commentary suggested.
Types of trusts and the enforcer role
The Act recognises charitable trusts (section 8), non-charitable purpose trusts, which can exist without any beneficiary (section 9), and family trusts (section 10). A family trust may be living or testamentary, must be made for the preservation or creation of wealth across generations, and must be a non-trading entity. The settlor can also be a beneficiary (section 10(3)), but no settlor may be the sole beneficiary (section 12(3)).
A trust is irrevocable unless the deed contains an express power of revocation (section 7). Subject to the deed, a settlor may reserve significant powers, including to vary the trust, direct distributions and appoint or remove trustees (section 13).
Any trust, not only a purpose trust, may have an enforcer: a person appointed by the settlor (or, failing a settlor, a beneficiary) to enforce the deed, inquire into its implementation and require remedial action (sections 14 and 15). The Registrar must be notified of the appointment within 21 days.
Who can be a trustee
Charitable and purpose trusts need at least three natural-person trustees or one corporate trustee; a family trust needs at least one trustee (section 11). Where trustees are individuals, at least one must be a Kenyan citizen or resident (section 11(3)). A trustee must be over 18 and not disqualified, for example as a disqualified company director, an undischarged bankrupt or a person convicted of corruption or an economic crime (section 36). A corporate trustee must be licensed (section 2) and must have a local contact person who is a natural person resident in Kenya (section 36(4)). Section 36(3) also refers to a company whose main object is providing trustee services and to licensing under other relevant written law, but its conditions are joined by “or”, so exactly which of them apply awaits clarification in the Regulations.
Trustee duties are now statutory: reasonable care, skill and diligence, acting within powers, not profiting from the trusteeship, preserving and segregating trust property, and keeping records (sections 43 to 48), with accounting records under section 64.
Beneficial ownership, annual returns and penalties
- Every trust must keep a register of beneficial owners and lodge a copy with the Registrar (sections 65 and 66).
- Changes must be lodged within 21 days (section 67), and records kept for at least seven years after a person ceases to be a beneficial owner (section 68).
- Failure to lodge attracts an administrative penalty of KES 10,000 for an individual trustee or KES 20,000 for a corporate trustee; persistent breach can lead to the Registrar moving to disqualify the trustees (section 69).
- Annual returns are due within 30 days of each anniversary of registration or incorporation, with a KES 3,000 penalty for each year of default (section 75).
- Lodging false or misleading documents is an offence punishable by a fine of up to KES 1 million, up to two years’ imprisonment, or both (section 92). Offences without a specific penalty carry a fine of up to KES 1 million (section 93).
Filings may be handled by a trust agent, defined as an advocate, certified secretary or certified accountant authorised to act for the trust (sections 2 and 76).
Existing trusts: the transition
Trusts incorporated under the repealed Trustees (Perpetual Succession) Act, and trusts created by registering a deed under the Registration of Documents Act, are deemed to be trusts under the new Act (section 99(2)(a)). All existing trusts must comply with the Act within 24 months of commencement, or such time as the Registrar directs (section 99(2)(b)). Trusts incorporated before commencement have the same 24 months to lodge their beneficial ownership register (section 66(2)), and the Registrar may replace old certificates of incorporation (section 99(3)).
Much of the operational detail, including forms and Registrar fees, is left to Regulations to be made by the Attorney-General (sections 83 and 96). Until they are published, some filing mechanics remain unsettled.
What to do now
If you are creating a trust after 25 September 2026, registration or incorporation is part of setting it up, not an optional extra, and the deed must meet the content requirements in section 23. If you already have a trust, use the transition window to confirm how it was constituted, collect beneficial ownership information, check your trustees against the qualification and residency rules, and plan registration or incorporation well before the 24 months run out.
How We Can Help
Clay & Associates Advocates advises settlors, trustees and beneficiaries on structuring, registering, incorporating and administering trusts under the Trust Administration Act, 2026, including transition compliance for existing trusts and the anti-money-laundering obligations that intersect with trust and property holding structures, discussed in our piece on AML compliance for real estate agents and developers. For wider estate planning, see our guide to wills, probate and estate administration. Our trust fees are published on our Our Fees page. Contact our Corporate & Commercial team to review an existing trust or plan a compliant structure from the outset.
Sources: Trust Administration Act, 2026 (Act No. 28 of 2026), Kenya Gazette Supplement No. 223, 11 September 2026, via Kenya Law; Trustees (Perpetual Succession) Act, as amended by Act No. 13 of 2021; reporting on presidential assent by The Star and Citizen Digital; Financial Action Task Force, Recommendation 25.
Frequently asked questions
When does the Trust Administration Act come into force?
On 25 September 2026. It was assented to on 8 September and published in the Kenya Gazette on 11 September 2026.
Do I need to register an existing family trust?
Yes. All existing trusts must comply with the Act, including registration or incorporation and beneficial ownership disclosure, within 24 months of commencement or such time as the Registrar directs (section 99(2)(b)).
What happens to trusts set up under the old Trustee Act or the Trustees (Perpetual Succession) Act?
Both Acts are repealed, but trusts incorporated under the old Act, or created by registering a deed under the Registration of Documents Act, are deemed to be trusts under the new Act and carry over with their existing rights, duties and parties (section 99(2)).
Can a foreign resident act as trustee of a Kenyan trust?
Yes, but where the trustees are individuals, at least one must be a Kenyan citizen or resident (section 11(3)). A corporate trustee must be licensed and must have a local contact person resident in Kenya (sections 2 and 36).
Is an unregistered written trust still valid?
It is not enforceable under the Act and may be declared invalid (sections 5(3) and 6(1)(f)), although a person claiming under it may apply to court for recognition (section 5(4)).
