Kenyans seeking to protect their homes, land, businesses and other assets from family succession disputes can now turn to a new legal framework governing trusts in the country.The Trust Administration Act, 2026, which was assented to by President William Ruto on September 8, introduces a consolidated framework for the creation, registration, incorporation, administration and dissolution of trusts in Kenya.The new law is particularly important for families that use trusts to hold property, company shares and other assets and want to determine how those assets will be managed and passed on to beneficiaries.A properly structured family trust is a legal arrangement where a person places assets under the control of trustees to manage them for the benefit of specified beneficiaries or purposes, potentially reducing disputes over the property when the person who established the trust dies.This can be particularly useful for families with valuable land, rental properties or businesses, where disagreements over inheritance can delay the distribution or management of assets.Unlike property that forms part of a person's ordinary estate, assets properly transferred to a trust are managed according to the terms of the trust, meaning the founder can set out how beneficiaries should benefit from them.However, creating a trust does not automatically protect every asset from succession disputes, creditors or other legal claims. The protection depends on how the trust is established, the assets transferred into it and how the trustees administer it.The new law also changes the level of transparency expected from trusts, requiring trustees to maintain information on beneficial owners and lodge the relevant details with the Registrar.Beneficial ownership information may include the settlor, trustees, beneficiaries and other individuals who ultimately own, benefit from or exercise effective control over the trust, depending on the circumstances.Existing trusts will also have to adjust to the new framework, with incorporated trusts given 24 months from the commencement of the Act to lodge their beneficial ownership information with the Registrar.Trustees will consequently need to review their registration status, governance arrangements, beneficiaries and records to ensure that their structures comply with the new requirements.For Kenyans considering a trust as part of succession planning, the new law therefore offers a formal framework for preserving family assets while introducing greater accountability and transparency over who controls and benefits from them.
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