MasiboLaw

By Meshack Masibo

Are you looking to set up a trust in Kenya? Understanding the process and legal requirements is crucial. A trust is a legal arrangement where a settlor (the person creating the trust) transfers property or assets to a trustee, who manages them for the benefit of beneficiaries. Below is a simplified yet comprehensive guide on registering a trust in Kenya.

Types of Trusts in Kenya

There are four main types of trusts, each serving different purposes:

1. Family Trust – Used for estate planning, asset protection, and management. It can take effect during the settlor’s lifetime or after their passing.
2. Charitable Trust – Established to support social causes such as education, healthcare, religion, human rights, or environmental conservation.
3. Non-Charitable Trust – Created for specific, legally acceptable purposes. It can also include charitable elements if desired.
4. Commercial Trust – Set up for business or investment purposes, such as real estate holdings, business succession planning, or investment funds. These trusts help structure assets efficiently while ensuring legal and financial security.

Steps to Register a Trust in Kenya

1. Draft a Trust Deed

The trust deed is a legal document outlining the trust’s structure and purpose. It must include:

• Name of the trust, trustees, and beneficiaries
• Objectives of the trust
• Powers and responsibilities of trustees
• Appointment and removal of trustees
• Liability of trustees
• Trust management procedures
• Dissolution process
• Amendment clauses

All trustees must sign the trust deed in the presence of a lawyer or witness. The document is then registered at the Ministry of Lands under the Registration of Documents Act (RDA).

2. Prepare Supporting Documents

To register a trust, you will need:

• A petition for the trust (commissioned by a commissioner for oaths)
• Minutes appointing the trustees
• Statement of funding sources
• Summary of the trust
• Financial statement (for the trust or a trustee)
• CVs of trustees or employees
• Diagram of the trust’s common seal
• Certified copies of ID, KRA PIN, and passport photos of the settlor, trustees, and beneficiaries

3. Submit Documents for Registration

Once all documents are ready, submit them to the Ministry of Lands for assessment and franking (processing takes about 4–5 working days). After franking, the trust undergoes booking, which takes approximately two weeks.

4. Apply for Trust Incorporation

For incorporation, submit an application through the Business Registration Service. If registering a non-charitable trust, include a list of assets, relevant title deeds, or other proof of asset ownership, along with a current search report confirming ownership.

Why Register a Trust?

Registering a trust offers benefits such as asset protection, tax efficiency, business continuity, and legal recognition. Whether for personal, business, or charitable purposes, following the right process ensures compliance and legitimacy.

Need assistance with trust registration? Contact us at info@masibolaw.co.ke for expert legal guidance.

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