The Trust Administration Act, 2026 came into force on 25 September 2026. It repeals the Trustee Act (Cap. 167) and the Trustees (Perpetual Succession) Act (Cap. 164), and replaces them with a single statute governing the creation, management, supervision and dissolution of trusts.
Here is what settlors and trustees need to know.
KEY CHANGES:
NEW
- Registration is now a condition of enforceability
- Trusts are registered with a new Registrar of Trusts. A written trust is unenforceable unless it is registered or incorporated.
- Beneficial-ownership register
- Every trust must keep a register of its beneficial owners, lodge it with the Registrar, update changes promptly and retain records for seven years. Breaches attract penalties and disqualification.
- A full dissolution and restoration process
- The Act sets out the procedure for dissolution, withdrawal of an application, restoration, and how property is dealt with on dissolution.
AMENDED
- Who can be a trustee, and how they must act
- There are new qualification and disqualification criteria. Corporate trustees must be licensed and have a resident contact person in Kenya. Statutory duties now include care, skill and diligence, with a professional standard of care.
- Wider annual returns and a new trust agent
- Annual returns go beyond trustees’ names and addresses. The Act also introduces the trust agent, who must be an advocate, certified secretary or certified accountant.
Existing trusts continue to exist under the Act, but must attain compliance within 24 months of commencement, that is, by September 2028. They recommend reviewing your trust arrangements now.