Trust Administration Act 2026 Kenya: What Changes for Family Trusts

Updated 1 November 2026

Kenya’s Trust Administration Act, 2026 (No. 28 of 2026) took effect on September 25, 2026 and requires every written trust to be either registered or incorporated with a new Registrar of Trusts at the Business Registration Service (BRS); an unregistered written trust is now unenforceable unless a court steps in. The Trust Administration Act also sets new trustee rules. The Act repealed the Trustees (Perpetual Succession) Act (Cap. 164) and the Trustee Act (Cap. 167), adds annual returns and beneficial-ownership filing, and gives existing trusts 24 months to comply.

Updated November 2026. Based on the Act as published by the BRS and a summary by EY Kenya dated October 12, 2026. This is a general guide, not legal advice.

Official source: The Trust Administration Act, 2026 (BRS).

Key dates

1. Every written trust must register or incorporate

A written trust can no longer run on a trust deed alone. You choose one of two routes:

• Registration puts the trust on the statutory register but does not make it a separate legal person.
• Incorporation makes the trustees a body corporate with perpetual succession, able to own property, sign contracts and sue or be sued in the trust’s name.

A registered trust can later convert to incorporated status. Trusts that will hold land, shares or large investments, or deal often with banks and buyers, usually favour incorporation; simple family arrangements may prefer registration.

2. What you file to register

1. The trust deed.
2. A register of beneficial owners.
3. A statement of the initial trust property.
4. A statement from any initial enforcers accepting the role.
5. The prescribed fee.

The fee under the new Act will be set by regulations, which had not been widely published at the time of writing. Under the old regime, the BRS charged KSh 10,050 to incorporate trustees, according to its earlier guidance; check the BRS for the current amount before filing.

3. Annual returns

Registered and incorporated trusts must file an annual return with the Registrar within 30 days of each anniversary of registration or incorporation. Diarise this: it turns trust compliance into a yearly task, like a company’s annual return.

4. Beneficial ownership disclosure

Every trust must identify the natural persons who ultimately own, control or benefit from it, keep their details in a register and lodge it with the Registrar. Changes must be filed within 21 days, and records of former beneficial owners kept for at least seven years. The information can be shared with authorities including the Attorney-General, investigative agencies, the Central Bank of Kenya, the Financial Reporting Centre and KRA.

5. Trustee rules

• A family trust needs at least one trustee. Charitable and non-charitable purpose trusts need at least three individual trustees or one corporate trustee.
• Where trustees are individuals, at least one must be a Kenyan citizen or resident.
• Individuals can be disqualified for reasons including age, mental incapacity, insolvency or certain criminal convictions.
• Corporate trustees must be incorporated under the Companies Act with trustee services as their main object, hold the required licence and keep a Kenya-resident contact person.

6. Tougher penalties

A trustee in breach of trust can face civil liability and an administrative penalty of up to KSh 1 million (KSh 5 million for a body corporate). Improper disposal of trust property can attract fines of up to KSh 5 million for an individual or KSh 20 million for a company, and up to five years in prison. A trust deed cannot excuse a trustee from liability for dishonesty, wilful misconduct or gross negligence. Failing to file beneficial-ownership information can lead to penalties and trustee disqualification for up to three years.

What existing trusts should do now

1. List every trust you are a settlor, trustee or beneficiary of, including deed-only family trusts and employee share schemes.
2. Decide whether each should register or incorporate.
3. Prepare the beneficial-ownership register and a statement of trust property.
4. Check trustee numbers and residency against the new rules.
5. Set an annual compliance calendar.

Trusts already incorporated under the old Act continue automatically, but still have to meet the new requirements, including beneficial-ownership filing, within the 24-month window. The Registrar may recall and replace old certificates.

Trusts in your estate plan

A trust is often used alongside a will to pass on land, shares and investments without a long court process, or to protect assets for children. If you are starting estate planning, read how to write a will in Kenya and how succession works in Kenya. For liquid assets held in trust, compare USD money market funds, and for land held in trust see prime Nairobi land prices.

Trust administration act: summary

the Trust Administration Act replaces two old laws. Under the Trust Administration Act every written trust registers or incorporates, files annual returns and lodges beneficial owners.

Frequently asked questions

When did the Trust Administration Act 2026 start?

It took effect on September 25, 2026, after assent on September 8, 2026.

Do existing family trusts have to register?

Yes. Written trusts must register or incorporate, and existing trusts have 24 months to comply.

What happens if a trust is not registered?

A written trust that is not registered or incorporated is unenforceable and may be declared invalid, although an interested person can ask a court to recognise it.

Who registers trusts in Kenya?

The Registrar of Trusts at the Business Registration Service.

Does a trust have to file annual returns?

Yes, within 30 days of each anniversary of its registration or incorporation.