Family Trusts · 11 July 2026

Family Trusts as an Estate Planning Tool in Kenya

How a Family Trust works in Kenya: the roles of founder, trustees, beneficiaries and enforcer, what protection it offers, and what establishing one involves.

A Family Trust is a legal arrangement through which a person, known as the founder or settlor, transfers assets to a trust to be managed by trustees as per a Trust Deed, for the benefit of designated beneficiaries.

Family Trusts are recognised under the Trustees (Perpetual Succession) Act and are intended to facilitate estate planning and the preservation or creation of wealth across generations.

Key Parties to a Family Trust

Founder or Settlor

The founder establishes the Trust, determines its objectives and terms, identifies the beneficiaries and transfers assets to it.

A founder may also be a beneficiary of their own Trust. Accordingly, establishing a Family Trust does not necessarily prevent the founder from continuing to benefit from the Trust Property during their lifetime.

Trustees

Trustees are responsible for managing and distributing the Trust Property in accordance with the Trust Deed and for the benefit of the beneficiaries.

Although Kenyan law permits the appointment of a sole trustee, it is generally advisable to appoint at least two trustees to promote accountability, continuity and balanced decision-making.

Family members or trusted friends may serve as trustees if they are competent, trustworthy and willing to undertake the responsibilities involved. Where the founder does not wish to appoint family members or friends, a professional or corporate trustee may be appointed. Professional trustees offer independence, expertise and continuity but ordinarily charge fees for their services.

Beneficiaries

Beneficiaries are the individuals or classes of persons entitled or eligible to receive benefits from the Trust. They may include the founder, their spouse, children, future descendants or any other persons identified in the Trust Deed.

Enforcer

An enforcer monitors the administration of the Trust and ensures that the trustees comply with the Trust Deed. The enforcer may request information and accounts, require trustees to remedy breaches and, where necessary, institute legal proceedings against them.

An enforcer cannot simultaneously act as a trustee of the same Trust. The founder may act as the enforcer, provided they are not also serving as a trustee.

Types of Family Trusts

Family Trusts may be structured in different ways, including:

• Revocable Trusts – may be amended or revoked by the founder during their lifetime in accordance with the Trust Deed.
• Irrevocable Trusts – generally cannot be revoked once established. A Trust without an express power of revocation is deemed irrevocable under Kenyan law.
• Discretionary Trusts – the trustees determine when, how and in what amounts distributions are made, subject to the Trust Deed.
• Fixed Trusts – the beneficiaries’ entitlements and proportions are predetermined in the Trust Deed.

Advantages

• Protect properly transferred Trust Property from third-party claims, creditors and matrimonial property disputes.
• Helps create and preserve a lasting family legacy by ensuring that family wealth is managed and passed on across generations.
• Assets properly transferred to the Trust can pass to beneficiaries without undergoing the court succession process upon the founder’s death.
• Enables the founder to identify the intended beneficiaries and exclude persons they do not wish to benefit, thereby reducing interference with family wealth and potential disputes.
• Allows distributions to be tailored to beneficiaries’ specific needs, including education, healthcare and general welfare.
• Qualifying transfers involving a registered Family Trust benefit from capital gains tax and stamp duty exemptions, subject to the applicable statutory conditions.
• Offers greater privacy than court-administered succession, as the Trust Deed and distribution arrangements generally do not form part of public probate proceedings.

Disadvantages

• Establishment, asset-transfer and ongoing administration costs may be high.
• The founder is required to surrender some control over the Trust Property to the trustees.
• Poor trustee selection may result in mismanagement, conflicts of interest or family disputes.
• Professional or corporate trustees ordinarily charge annual administration fees.
• Only assets properly transferred to the Trust receive the intended benefits. Assets remaining in the founder’s personal name may still undergo the court succession process.
• A Family Trust is a non-trading entity and may need to hold an operating family business through shares in a separate company.

Key Stages in Establishing a Family Trust

The process generally involves four stages:

Drafting, Review and Execution of the Trust Deed

The Trust Deed sets out the objectives of the Trust, its beneficiaries, the powers and duties of the trustees and the rules governing distributions. The timeframe depends on the complexity of the arrangements and the prompt provision of the required information.

Registration of the Trust Deed

The executed Trust Deed is registered with the relevant registry. This process typically takes approximately seven to ten working days, subject to registry timelines.

Incorporation of the Trust

An application is submitted to the Business Registration Service for incorporation of the trustees. Once incorporated, the trustees become a body corporate with perpetual succession and the capacity to hold Trust Property in the Trust’s registered name. This process typically takes approximately two to three weeks, subject to registry timelines.

Transfer of Assets to the Trust

The identified assets must be legally transferred to the Trust. The applicable documents, costs and timelines depend on the nature, location and ownership of each asset. Asset transfers are ordinarily undertaken and billed separately from the establishment and incorporation of the Trust.

A Family Trust only achieves its intended purpose when it is properly structured, administered by suitable trustees and fully activated through the transfer of the relevant assets to the Trust

Take the Next Step

For tailored assistance in establishing and structuring your Family Trust, contact our team at info@africalegacyfiduciary.com. Let us help you protect your family wealth and preserve your legacy for generations to come.