For a long time, the Law on trusts in Kenya existed in fragmented pieces of legislation, with separate statutes governing different aspects of the trust. On one hand, the Trustee Act (Cap. 167) provided the general framework for the appointment, powers, and duties of trustees and the administration of trusts. On the other hand, the Trustees (Perpetual Succession) Act (Cap. 164) provided the framework for the incorporation of trustees and the holding of trust property through incorporated bodies. This resulted in a framework that addressed important aspects of trusts, but did not provide a single, comprehensive regime governing their creation, administration, oversight and eventual dissolution.

However, the Trust Administration Bill, assented to on 8^th September 2026, repeals the two existing statutes and introduces a unified framework for the creation, registration, administration, oversight and dissolution of trusts. For families using trusts for succession planning, asset protection and intergenerational wealth management, this represents a significant change. Trusts remain private wealth-management and succession structures, but the trustees administering them now operate with a more defined statutory environment, with greater emphasis on registration, transparency, record-keeping and accountability.

What Changes under the New Framework?

Other than consolidating the previous statutory frameworks, the Act introduces a number of changes that affect how trusts are established, administered and supervised in practice. Some of the key changes include:

A Comprehensive Registration Framework

The Act introduces a more structured framework for the registration and administration of trusts, including the establishment of a Registrar of Trusts. The establishment of the office of the Registrar of Trusts under the Business Registration Service gives the new framework an important institutional dimension, which treats trusts as a distinct category of legal arrangement from companies, requiring dedicated registration, record-keeping, and regulatory oversight.

Transparency on Beneficial Ownership

Previously, beneficial ownership requirements applicable to trusts arose largely through Kenya’s broader anti-money laundering and financial transparency framework. While trustees were required to identify and maintain information on persons connected to the trust for regulatory and compliance purposes, beneficial ownership transparency was not embedded within the core statutory framework governing the administration of trusts.

However, the Trust Administration Act, 2026, now places beneficial ownership transparency more squarely within trust administration. Under the new framework, there is a requirement to identify and maintain information relating to the beneficial owners of the trust, increasing regulatory visibility to authorities such as the Financial Reporting Centre (FRC) and reporting institutions of the natural persons who ultimately benefit from, control, or exercise effective influence over a trust. Trustees will therefore be required to maintain accurate and up-to-date records on beneficial owners and make the information available to relevant authorities when required. Additionally, trustees will be required to retain the information for at least seven years.

The impact of this is the enhancement of the ability of regulators and law enforcement agencies to detect and investigate financial crimes, including money laundering and terrorism financing.

Formalization of Trust Names

The new framework introduces specific requirements governing the names under which trusts are registered. It restricts the registrar from reserving or approving names that consist of abbreviations, initials, or characters that are not authorized under the Act.

Trustees may therefore need to review how their trusts are identified and regularize inconsistencies to ensure that the trust’s registered name is consistent

A Structured Framework for Dissolution

The Act also provides a more defined framework for bringing trusts to an end. This addresses an aspect of trust administration that can be overlooked, including the responsibilities surrounding the winding up of a trust, including the treatment of its property and the continuing obligations of trustees.

Transition Period

The Act provides for a 24-month transition period for existing trusts to align with the new requirements. This creates an important compliance requirement for trustees and families to review their registration status, trustee arrangement, beneficial ownership information, records and trust documentation.

Conclusion

The new framework brings better structure, transparency and accountability to trust administration in Kenya. While trusts remain valuable vehicles for succession planning and wealth management, trustees and families should use the transition period to review their arrangements, regularize their records and ensure compliance with the new requirement.

Is Your Trust Ready for the New Framework?

Are you contemplating the establishment of a trust as part of your estate planning or need to assess an existing trust under the new regulatory framework?The transition to the new trust administration framework presents an opportunity for trustees and families to review their existing arrangements and address any gaps before the 24-month transition period expires.

This material is intended solely for informational purposes and should not be relied upon without seeking specific professional advice on the matter. Should you have any questions regarding this topic, please feel free to contact our team at info@ke.andersen.com