The Trust Administration Act, 2026

Introduction

Kenya's legal framework governing trusts has undergone a significant change following the enactment of the Trust Administration Act, 2026 (Act No. 28 of 2026). The Act repeals the Trustee Act (Cap. 167, Laws of Kenya) and the Trustees (Perpetual Succession) Act (Cap. 164, Laws of Kenya) and introduces a consolidated framework for the creation, registration, incorporation, administration and dissolution of trusts.

Among the key changes introduced by the Act are the formal registration and incorporation of trusts, beneficial ownership requirements, clearer duties for trustees, recognition of purpose trusts, the introduction of trust agents, and a structured process for the dissolution of trusts.

These changes are particularly important for settlers, trustees, beneficiaries and families using trusts for estate and succession planning.

1. Written Trusts Must Now Be Registered or Incorporated

The Act recognizes that a trust may be written or implied. However, a written trust is required to be registered or incorporated in accordance with the Act and its trust deed to be enforceable. A person claiming an interest under a written trust that has not been registered or incorporated may apply to the Court for recognition or enforcement.

Importantly, registration and incorporation are not the same thing.

Registration does not give a trust separate legal personality. An incorporated trust, on the other hand, becomes a body corporate capable of having perpetual succession, suing and being sued, and acquiring, holding, developing or disposing of property in its own name. This distinction is important when determining how a trust should be structured and administered.

2. A New Registration Framework for Trusts

The Act establishes a formal process for registration of trusts. An application for registration is required to include, among other things:

• The trust deed;
• The prescribed registration fee;
• The register of beneficial owners;
• A statement of the initial trust property;
• Details of the settlor;
• Details or descriptions of the beneficiaries;
• Details of the trustees;
• Details of any enforcers; and
• The registered address of the trust or the address of the trust agent.

The trust deed itself must contain important information concerning the creation and management of the trust, appointment and removal of trustees, the trust property, trustees and beneficiaries, among other matters. Once registered, the Registrar issues a certificate of registration. However, the certificate does not by itself give the trust a separate legal personality.

3. Trusts Can Also Be Incorporated

The Act provides a separate framework for incorporation of trusts. An incorporated trust becomes a body corporate and has perpetual succession. It may sue and be sued and may acquire, own, hold, develop and dispose of property in its own name.

This provides a distinct legal structure for trusts that require corporate personality and continuity beyond individual trustees. A registered trust may subsequently apply for incorporation. Upon incorporation, it ceases to exist as a registered trust and becomes a body corporate.

4.Greater Transparency Through Beneficial Ownership Requirements

One of the significant changes under the new framework is the formal recognition of beneficial ownership obligations for trusts. Trusts are required to maintain a register of beneficial owners and lodge the relevant information with the Registrar. Where there is a change in beneficial ownership, the relevant records must also be updated and lodged within the prescribed period.

This represents a move towards greater transparency in the ownership and control of trust property and places greater responsibility on trustees to maintain accurate records. The Act also requires trustees to maintain extensive records concerning the trust, including information relating to settlors, trustees, beneficiaries, beneficial owners, trust property, accounts, transactions, contracts and trustee resolutions.

Trustees are required to retain these records for at least seven years after termination or dissolution of the trust, or after they cease to be trustees.

5. New Requirements for Trustees

The Act places significant responsibilities on trustees. Trustees are required to exercise reasonable care, skill and diligence, act within the powers granted to them, preserve trust property and keep trust property separate. They are also required to keep proper records and comply with the terms of the trust deed. The Act further restricts trustees from profiting from their position as trustees except where such profit is permitted by the trust deed, authorized by the Court or otherwise permitted by law.

These provisions reinforce the fiduciary nature of the trustee's role and emphasize proper governance and accountability in the administration of trust property.

6. Who Can Act as a Trustee?

The Act introduces minimum qualification requirements for trustees. Generally, an individual trustee must be at least 18 years old and must not be disqualified under the Act or another written law.

Certain persons are specifically disqualified, including persons who are disqualified from acting as company directors or certain insolvency office holders, persons declared mentally incapacitated under the Mental Health Act, certain persons convicted of criminal offences, persons convicted of corruption or economic crimes, and undischarged bankrupts.

The Act also provides for corporate trustees subject to specified requirements. For charitable and non-charitable purpose trusts, there must generally be at least three natural person trustees or one corporate trustee. A family trust may have at least one trustee. Where trustees are natural persons, at least one trustee must be a Kenyan citizen or resident, subject to the applicable requirements.

7. Family Trusts Receive Specific Recognition

The Act expressly recognizes the family trust as a type of trust. A family trust may be established during a person's lifetime or through a testamentary arrangement and is intended for purposes including planning or managing personal estates. The Act provides that a family trust is contemplated for beneficiaries and may be established for the preservation or creation of wealth for generations. It is also classified as a non-trading entity. Importantly, a family trust is not invalid merely because the settlor is also a beneficiary.

This provides a clearer statutory foundation for the use of trusts as part of estate planning, intergenerational wealth planning and succession arrangements.

8. Non-Charitable Purpose Trusts Are Now Recognized

The Act also formally recognizes non-charitable purpose trusts. These are trusts established to fulfil a specific purpose that does not qualify as charitable. Unlike an ordinary beneficiary-focused trust, a non-charitable purpose trust may exist even where there is no beneficiary.

For such a trust to be valid, its purpose must be specific, capable of fulfilment and lawful. The trust deed must also provide for what happens to surplus assets when the trust comes to an end. This expands the possible uses of trusts beyond traditional family and succession planning and provides a statutory basis for trusts established around particular lawful objectives.

9. The Introduction of Enforcers

The Act introduces the role of an enforcer in relation to trusts. An enforcer may be appointed by the settlor or, where there is no settlor, by a beneficiary, subject to the terms of the trust deed.

The role may include:

• Enforcing the terms of the trust deed;
• Inquiring into the implementation of the trust;
• Requiring trustees to take remedial action where there has been a breach;
• Reporting financial or other breaches by trustees; and
• Pursuing civil or criminal legal action against trustees.

An enforcer is therefore an additional accountability mechanism within the administration of certain trusts.

10. Trust Agents

The Act introduces the concept of a trust agent. A trust agent may be an advocate of the High Court of Kenya, a certified secretary or a certified accountant authorized to act on behalf of a trust. The role may include assisting with matters such as establishing a trust, providing an address and dealing with statutory filings and other administrative requirements.

This provides trustees and settlers with an avenue for obtaining professional assistance in complying with the new regulatory framework.

11. Changes to Trustees and Trustee Appointments

The Act establishes procedures for appointing, replacing, resigning and removing trustees.

A person appointed as a trustee must notify the Registrar within twenty-one days of the appointment, together with the required consent and prescribed fee. The Act also provides mechanisms for appointing additional or substitute trustees where a trustee dies, resigns, becomes disqualified or otherwise ceases to act. Trustees are similarly required to notify the Registrar of relevant changes within the prescribed period.

This means that changes in the composition of trustees should no longer be treated merely as internal administrative matters. They may also trigger statutory filing obligations.

12. Dissolution of Trusts

The Act introduces a structured framework for dissolution of trusts. A trust may be dissolved in circumstances provided for under the Act, including where the purpose of the trust has been fulfilled or has ceased to exist, where its purpose can no longer be achieved, or pursuant to a Court order. The Act also provides for restoration of a trust where dissolution occurred by mistake or where the Court orders restoration.

This provides greater clarity on how trusts may be brought to an end and how trust property should be dealt with following dissolution.

13. What Does the New Law Mean for Existing Trusts?

The commencement of the Act means that existing trusts should not assume that their previous arrangements can simply continue without review.

Trustees should consider reviewing:

• The trust deed;
• The identity and eligibility of trustees;
• The trust's registration or incorporation status;
• The trust's beneficial ownership records;
• The description of beneficiaries;
• The trust property and asset records;
• Trustee resolutions and financial records;
• Existing appointments and changes of trustees; and
• The trust's compliance and filing arrangements.

The new framework places greater emphasis on documentation, transparency, governance and ongoing compliance.

The Act also provides for transitional and saving provisions, making it important for existing trusts to assess how the new requirements apply to their particular circumstances.

What This Means for Settlors, Trustees and Beneficiaries

The Trust Administration Act, 2026 represents more than a change in registration procedure. It introduces a more structured regulatory environment for trusts in Kenya.

For settlors, the new law highlights the importance of carefully structuring the trust deed, defining its purpose and beneficiaries, and selecting appropriate trustees.

For trustees, the Act creates stronger administrative, record-keeping and fiduciary obligations.

For beneficiaries, the framework provides clearer mechanisms for transparency, access to information and accountability in the administration of trust property.

For existing trusts, the immediate priority should be reviewing current structures and identifying areas requiring compliance or restructuring.

Conclusion

The Trust Administration Act, 2026 marks a significant development in Kenya's law on trusts.

The new framework introduces formal registration and incorporation procedures, beneficial ownership requirements, clearer trustee obligations, recognition of family and purpose trusts, trust agents and a structured approach to the administration and dissolution of trusts.

For individuals and families using trusts for estate planning, succession planning and intergenerational wealth preservation, the changes make it increasingly important to ensure that the trust is properly structured and administered from the outset.

Existing trustees should also review their trust documentation and compliance arrangements in light of the new law.

At Wanjiru Nyaguthi & Company Advocates, we assist clients with trust structuring, trust documentation, estate and succession planning, registration and compliance matters, and legal advice concerning the administration of trust property.