06/08/2026
TRUSTS
Trusts in Kenya are legal entities used for asset management, estate planning, and philanthropy, categorized primarily into family trusts, charitable trusts, and non-charitable purpose trusts. They are governed by the Trustees (Perpetual Succession) Act (Cap. 164) and the Registration of Documents Act, providing a corporate personality and perpetual succession.
Main Types of Trusts
Family Trusts: Used for wealth preservation, smooth succession planning, and protecting vulnerable beneficiaries without going through public probate court. They also enjoy exemptions on stamp duty and capital gains tax during asset transfers.
Charitable Trusts: Formed for public benefit purposes such as advancing education, relieving poverty, promoting religion, or protecting the environment.
Non-Charitable Purpose Trusts: Established for specific, lawful non-commercial objectives where there may be no direct individual beneficiary.
Key Parties Involved
Settlor: The individual or entity that creates the trust and transfers assets into it.
Trustee: The person or corporate body that holds and manages the trust property for the beneficiaries.
Beneficiary: The person or group designated to receive benefits or support from the trust.
Protector/Enforcer: An optional independent party who monitors the trustees to ensure they follow the settlor's wishes.
Registration and Incorporation Process
Drafting the Trust Deed: Document outlining the objectives, rules, names of trustees, and beneficiaries.
Stamp Duty Payment: Submitting the deed for assessment and payment of required stamp duty.
Registry Filing: Registering the documents under the Ministry of Lands.
Incorporation: Applying for a Certificate of Incorporation through the Business Registration Service (BRS) portal to grant the trust a distinct legal identity.
