Kenya's President William Ruto has signed the Trust Administration Act, 2026, into law, providing a unified legal framework for trusts in the country. The new legislation aims to help families protect their property and businesses from inheritance battles. The Act establishes a consolidated regime for creating, registering, administering, and dissolving trusts in Kenya. This move is expected to offer families a formal mechanism for preserving their assets while increasing accountability over who controls and benefits from trusts.
The Trust Administration Act is targeted at families that hold land, rental properties, or businesses in trust, allowing them to set clear terms for management and succession of those assets. A family trust, under the new law, involves a settlor transferring assets to trustees who manage them for designated beneficiaries. This can reduce disputes after the settlor's death, as the assets are governed by the trust deed rather than the settlor's ordinary estate.
The Act clarifies that assets placed in a properly structured trust are governed by the trust deed rather than the settlor's ordinary estate, enabling the founder to dictate beneficiary rights. However, protection is not automatic and depends on how the trust is set up, which assets are transferred, and how trustees carry out their duties. The law introduces stricter transparency requirements, obliging trustees to record and lodge beneficial-owner details with the Registrar of Trusts.
Existing incorporated trusts have a two-year window from the Act's commencement to submit the required beneficial-ownership information. Trustees will need to review their registration status, governance structures, and beneficiary registers to ensure compliance with the new framework. This move is expected to increase accountability over who controls and benefits from trusts.
The Trust Administration Act offers a formal mechanism for preserving family assets while increasing accountability over who controls and benefits from trusts. The legislation is expected to reduce disputes over inheritance, as families can set clear terms for management and succession of their assets. The Act also provides a consolidated regime for creating, registering, administering, and dissolving trusts in Kenya.
President William Ruto assented to the Trust Administration Act on 8 September 2026, marking a significant milestone in the country's efforts to provide a unified legal framework for trusts. The legislation is expected to have a positive impact on families and businesses in Kenya, providing them with a tool to shield their assets from succession disputes.
Overall, the Trust Administration Act, 2026, is a significant development in Kenya's efforts to provide a unified legal framework for trusts. The legislation offers families a formal mechanism for preserving their assets while increasing accountability over who controls and benefits from trusts.
Key points
- The Trust Administration Act establishes a consolidated regime for creating, registering, administering, and dissolving trusts in Kenya.
- The Act introduces stricter transparency requirements for trustees.
- Existing incorporated trusts have a two-year window to submit beneficial-ownership information.
