The Trust Administration Bill, 2026
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
Mandatory Registration of Beneficial Owners
Every trust is required to compile, maintain, and lodge a register of its beneficial owners with the Registrar of Trusts under Sections 65 and 66.
- Timeline for Existing Trusts: Trusts established before the commencement of this Act must lodge their beneficial ownership registers within 24 months of the law taking effect.
- Ongoing Updates: Any changes to beneficial ownership must be submitted to the Registrar within 21 days of the change.
- Penalties for Default: Failing to lodge or update the register attracts administrative penalties of KSh 10,000 for natural persons and KSh 20,000 for corporate trustees.
Creation of a Central Registrar of Trusts
Section 77 establishes the office of the Registrar of Trusts as part of the Business Registration Service.
- Core Functions: The Registrar will maintain the central Register of Trusts, process applications for trust registration and incorporation, issue certificates, and enforce compliance.
- Power of Direction: Under Section 79, the Registrar can issue direct orders to trustees to provide outstanding information. Failure to comply within 30 days can lead to the disqualification of the trustees.
KSh 20 Million Fine for Neglecting Trust Property
Section 46 places a strict statutory duty on trustees to preserve the value of trust property and prohibits them from disposing of assets in a manner that frustrates the trust's purpose.
- Individual Trustees: Natural persons who violate this provision face a fine of up to KSh 5 million, a prison term of up to 5 years, or both.
- Corporate Trustees: Corporate entities acting as trustees face a fine of up to KSh 20 million upon conviction.
Mandatory Seven-Year Record Retention Rule
Under Sections 48, 63, and 64, trustees must maintain accurate accounts and records relating to the trust's administration, property, transactions, and beneficial owners.
- Retention Period: Records must be kept for at least seven years from the date of the trust's termination or from when the trustee ceases to act.
- Fines for Record Failures: Failure to maintain these records carries a fine of up to KSh 1 million or imprisonment for up to 2 years for natural persons, and up to KSh 3 million for corporate entities.
Bill No.
No. 29 of 2026
Gazette No.
Supplement No. 124 of 2026
Sponsor
Kimani Ichung'wah
Background
The Trust Administration Bill, 2026 seeks to modernize Kenya's trust laws by consolidating the legal framework for the registration, incorporation, and administration of trusts. By reforming these processes, the Bill aims to improve transparency, align trust administration with international anti-money laundering standards, and provide robust mechanisms for the regulation of trustees.
Key Amendments
- Repeal of Existing Laws: The Bill repeals the Trustees (Perpetual Succession) Act (Cap. 164) and the Trustees Act (Cap. 167) under Section 97.
- Consequential Amendment: Section 4 of the Registration of Documents Act (Cap. 285) is amended to incorporate trust deeds or deeds of trustee appointments registered under this new framework.
- Limitation of Trustees: Section 11 restricts the number of trustees, requiring charitable and non-charitable purpose trusts to have at least three natural persons or one corporate trustee. Family trusts must have at least one trustee, with at least one trustee being a Kenyan citizen or resident.
New Obligations
- Registration and Incorporation: Trustees must register the trust deed (Section 22) or apply for incorporation to create a body corporate (Section 29) through the newly established Registrar of Trusts.
- Beneficial Ownership Disclosures: Trustees must maintain a register of beneficial owners (Section 65) and lodge it with the Registrar (Section 66).
- Trust Agents: Trusts may appoint qualified Trust Agents (advocates, certified secretaries, or certified accountants) to handle statutory filings and administrative duties (Section 76).
- Data Protection: Any person processing personal data under the Act must strictly comply with the Data Protection Act (Cap. 411C) as required by Section 91.
Penalties
- Property Preservation Failures (Section 46): Fines up to KSh 5 million or 5 years' imprisonment for individuals; up to KSh 20 million for corporate bodies.
- Failure to Keep Records (Section 48 & 63): Fines up to KSh 1 million or 2 years' imprisonment for individuals; up to KSh 3 million for corporate bodies.
- Breaching Access to Information Rules (Section 49): Fines up to KSh 1 million or 2 years' imprisonment for individuals; up to KSh 3 million for corporate bodies.
- Lodging False or Misleading Documents (Section 92): Fine of up to KSh 1 million, up to 2 years' imprisonment, or both.
- General Penalty (Section 93): A default fine not exceeding KSh 1 million for offences where no specific penalty is provided.
- Administrative Defaults: Failing to notify the Registrar of trustee appointments, enforcer resignations, or record changes within 21 days results in fixed administrative penalties ranging from KSh 7,000 to KSh 20,000 (Sections 17, 37, 41, 48, 66).
Transitional Provisions
- Validation of Existing Trusts: Any trust incorporated under the repealed Cap. 164 or registered under Cap. 285 is deemed registered under the new Act (Section 97(2)(a)).
- Compliance Window: All existing trusts must fully comply with the new Act's provisions within 24 months of its commencement (Section 97(2)(b)).
- Beneficial Ownership Filing: Existing trusts must compile and lodge their beneficial ownership registers with the Registrar within 24 months of the Act's commencement (Section 66(2)).
Gazettement
The Trust Administration Bill, 2026 was published in the Kenya Gazette No. 124.
First Reading
The Bill was read a First Time in the National Assembly.