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Kenya
New trusts laws in Kenya that came into force this year will consolidate trusts and put the industry into one legal framework; they will require those running trusts, employee share ownership plans and other entities to check that their affairs are in order.

A note from Bowmans Kenya, a law firm, explained what trustees and settlors must know about the Kenya Trust Administration Act, 2026, which became law on 25 September. As part of the change, the Trustee Act (Cap 167) and the Trustees (Perpetual Succession) Act (Cap 164) have been repealed.

All existing trusts must comply with the [new] Act within 24 months from 25 September 2026.

“The Registrar of Trusts (Registrar), an office within the Business Registration Service (BRS), is responsible for the registry and oversight. Clients should prepare for continuing filings and supervision, alongside the existing requirements of their trust deeds,” the note, written by a variety of legal experts, said. 

“The Act applies to trusts registered or incorporated under it, trusts created by court order and trusts created by or under other written law. It also preserves trusts and fiduciary obligations arising under customary law, equity, wills, court orders or written law. Private and family trusts, charitable trusts and non-charitable purpose trusts therefore need to assess their position under the new framework,” the note said. 

“Employee share ownership plans (ESOPs), real estate investment trusts (REITs) and nominee holdings of securities should be reviewed to determine whether they create a trust and how the Act interacts with the applicable company, securities or other legislation,” it continued. "Their label alone does not determine the answer. Offshore trusts require a similar review of their governing law and Kenyan connections. Section 48 expressly requires records of foreign trusts administered by trustees, including their beneficial owners, Kenyan property and transactions connected with Kenya.”

The note was written by Vruti Shah, partner; Richard Harney, SC, senior partner; Philip Coulson, deputy chairman and SP; Rainbow Field, head of M&A and director, Employment; Alex Mathini, partner; and Raynold Mwanguku, Kelvin Mbithi and Dennis Okumu, associates, Bowmans Kenya.

The note said trusts already incorporated under Trustees (Perpetual Succession) Act Cap164 and trusts created through registration of their deeds under the Registration of Documents Act remain recognised under section 99 of the Act. Existing rights, powers, liabilities and duties, and the status of existing parties, are preserved. 

The Registrar may issue replacement incorporation certificates and recall those issued under the repealed regime.

The note said trustees should plan towards September 2028 while identifying ongoing deadlines now. Annual returns are due within 30 days of the anniversary of registration or incorporation under the Act.