The Act is the first comprehensive overhaul of Kenya’s trust law. It repeals the Trustee Act (Cap. 167) and the Trustees (Perpetual Succession) Act (Cap. 164), and replaces them with a single framework that governs a trust from creation to dissolution.
Key changes include:
- Registration: trusts are now registered with a new Registrar of Trusts, and a written trust is unenforceable unless it is registered or incorporated.
- Beneficial ownership: every trust must keep a register of its beneficial owners, lodge it with the Registrar, update it promptly and retain records for seven years. Breaches attract penalties and disqualification.
- Trustees: there are new qualification and disqualification criteria, licensing of corporate trustees, a resident contact person in Kenya, and statutory duties that include a professional standard of care.
- Administration: annual returns are broader, and every trust must have a trust agent, who must be an advocate, certified secretary or certified accountant.
- Dissolution: there is now a full process for dissolution and restoration.
Existing trusts continue to exist under the Act, but they must comply within 24 months of commencement, that is, by September 2028.