Kenya’s New Trust Law: What Every Diaspora Family Must Know Before September 25

For Kenyans abroad with family property, businesses, charitable projects, or inheritance plans at home, the way trusts are set up and managed is changing. Kenya’s Trust Administration Act, 2026, comes into force on 25 September 2026, introducing a more formal system for registering trusts, disclosing beneficial ownership, strengthening trustee accountability, and placing trust administration under closer regulatory oversight.
I have also created a ready-to-use editorial hero image for the article.
The big change
For many Kenyans in the diaspora, a trust has become an important tool for protecting family land, managing rental property, supporting children’s education, preserving a business, or avoiding disputes after the death of a parent.
Until now, Kenyan trust law was spread across older statutes, particularly the Trustees Act and the Trustees (Perpetual Succession) Act. The new law repeals those statutes and replaces them with a unified legal framework for the creation, registration, incorporation, administration, regulation, and dissolution of trusts.
This is not simply a paperwork change. It marks a shift from a largely private arrangement into a more closely supervised legal structure.
Why diaspora families should pay attention
Distance can make family assets difficult to manage. A relative in Kenya may be holding title documents, collecting rent, operating a business, or overseeing land on behalf of relatives living in the United States, United Kingdom, Canada, Europe, the Gulf, or elsewhere.
A properly managed trust can help bring clarity to those arrangements. But under the new law, a trust will need more than a well-written deed and trusted family members. It will require compliance, updated records, clear governance, and accurate disclosure of the people who ultimately own, control, or benefit from the trust.
The law establishes the office of the Registrar of Trusts within the Business Registration Service. The Registrar will oversee registration, statutory filings, and trustee compliance, signalling an active regulatory approach to trusts.

What this means in real life
Consider a family in Lowell, London, Toronto, or Atlanta that owns a parcel of land in Kenya, a rental apartment in Nairobi, or a small business operated by relatives at home.
In the past, the arrangement may have relied on verbal understandings, informal authority, or a trust deed prepared years ago and placed in a drawer. The new law makes that approach riskier.
The family should now ask:
• Is the trust formally registered or incorporated where required?
• Is the trust deed current and consistent with the new law?
• Are the trustees properly appointed and qualified to act?
• Is there a clear record of the trust assets, income, decisions, and beneficiaries?
• Have all beneficial owners been accurately identified?
• Who is responsible for filing updates when there is a death, birth, trustee change, sale of property, or new beneficiary?
• Does the family need an advocate, accountant, or other trust agent to coordinate compliance in Kenya?
The answer will differ from one trust to another, but the message is clear: trust administration can no longer be treated as a once-only legal exercise. It will require ongoing attention.
Trustees face greater responsibility
The Act strengthens the legal duties and exposure of trustees. Trustees are expected to act responsibly, preserve trust property, keep proper records, comply with statutory filing obligations, and administer the trust in line with its deed and the law.
The consequences can be serious. According to legal analysis of the Act, improper disposal of trust property may attract a fine of up to KES 5 million and/or imprisonment of up to five years for an individual trustee. A corporate trustee may face a fine of up to KES 20 million.[aln]That matters especially where a diaspora family has appointed a sibling, cousin, friend, or business partner as trustee. Trust should remain a family value—but it must now be supported by documented authority, transparent records, and legal compliance.
A practical checklist
Before the September 25 commencement date, diaspora families with Kenyan trusts should consider taking these steps:

1. Locate and review the trust deed
   Confirm the date it was created, the trust assets, named trustees, beneficiaries, powers of appointment, and rules for replacing trustees.
2. Confirm the trust’s legal status
   Establish whether it has been registered, incorporated, or otherwise formalised—and determine what action may be required under the new framework.
3. Prepare a beneficial-ownership record
   Identify the people who ultimately control or benefit from the trust, and ensure their information is accurate and kept up to date.
4. Review trustee appointments
   Check whether the current trustees remain suitable, available, and willing to carry out their responsibilities.
5. Create an asset and document register
   List land titles, share certificates, bank details, business interests, rental records, insurance policies, and other property held by or for the trust.
6. Establish a reporting process
   Decide who will notify the Registrar when information changes and who will retain proof of filings, trustee resolutions, and financial records.
7. Seek Kenya-based professional advice
   A qualified Kenyan advocate or appropriately appointed trust agent can help assess whether the trust meets the new registration, governance, and disclosure requirements.
   Bottom line
   The Trust Administration Act, 2026, offers an opportunity for Kenyan families at home and abroad to put their affairs in order. It can promote clearer succession planning, stronger stewardship of family wealth, and better protection against disputes—but only if families act early.
   For diaspora households, the best approach is not panic. It is a trust health check: review the documents, identify the people in control, verify the assets, clarify trustee roles, and prepare for the new compliance rules well before the transition period expires.[aln]This article is for public information and does not replace legal advice. Families should obtain advice tailored to their trust, assets, residency position, tax obligations, and succession plans.