Securing a family’s legacy goes beyond a simple will. It requires understanding the specific legal framework that makes a Family Trust effective in Kenya. This article outlines the six essential Kenyan statutes that govern asset protection, succession, and taxation for your trust.
The legal framework for trusts in Kenya is evolving! With the proposed Trust Administration Bill, 2025, set to potentially repeal existing legislation like the Trustees (Perpetual Succession) Act (Cap 164), understanding how to formally wind up a family trust is crucial for settlors and trustees alike. While the core principles remain rooted in the Trust Deed, the process will likely align with the new dissolution standards for incorporated bodies.
These trusts are managed by a group of people called trustees and are governed by the Kenya’s Trustees Act. They’re permanent and irrevocable, which means you can’t take back the assets you donate to the trust. This ensures your legacy of giving lasts forever and protects the assets from creditors.
A Trust is a legal arrangement where a person, known as the Settlor (or Founder/Grantor/Donor), transfers ownership of assets (Trust Property) to Trustees. The Trustees manage these assets for the benefit of designated third parties, the Beneficiaries.
The term for this is transmission of shares. It’s the legal process of passing on shares from a shareholder to another person because of an event that’s not a voluntary sale or gift.
This often happens when a shareholder passes away, and their shares are inherited by an heir or a legal representative of their estate.
P.A.Y.E is a vital part of any company doing business in Kenya, understanding and following the rules for PAY AS YOU EARN (PAYE) in running a responsible business. PAYE is the system where an employer, deducts income tax directly from the team’s salaries and send it to the Kenya Revenue Authority (KRA).
For every ambitious entrepreneur in Kenya, whether a local or a foreign resident, a KRA PIN is far more than just a number. It’s the absolute foundation for running a legal, growing, and trustworthy business. The Kenya Revenue Authority (KRA) Personal Identification Number (PIN) is essential for businesses of all shapes and sizes, from someone just starting out to large corporations.
Uganda presents a compelling opportunity for investors seeking to expand their reach and capitalize on the region’s expanding markets.
Tanzania, a growing East African economy, offers favorable conditions for foreign investment due to government support.
Choosing the right business structure involves several crucial steps to ensure legal compliance, operational efficiency, and alignment with your business goals.