Setting up a trust in Kenya: Thinking about safeguarding your assets and ensuring their smooth transfer to loved ones? Or safeguarding the assets of a non profit or charitable organisation? Setting up a trust in Kenya might be the answer. This guide simplifies the process for you, making it easier to navigate the legalities and secure your legacy.
What is a Trust?
A trust is a legal arrangement where you, the settlor, transfer ownership of assets (property, investments) to a trustee. This trustee then holds and manages those assets for the benefit of designated beneficiaries (family, charity, etc.).
Types of Trusts in Kenya
Kenya recognizes three primary trust structures:
Family Trust: Ideal for managing and planning your personal estate for future generations.
Charitable Trust: Established to support causes like education, poverty alleviation, or environmental protection.
Non-Charitable Trust: Created for a specific purpose, like holding assets for a business venture.
Steps to Register a Trust in Kenya
- Craft a Comprehensive Trust Deed:
This document forms the foundation of your trust. It should clearly outline:
Trust Name: Must include “Registered Trustees” at the end.
Objectives: Define the purpose of the trust.
Trustees: Specify their names, addresses, and powers.
Assets: List all properties and investments included.
Beneficiaries: Identify them and their designated share.
Signatures: Ensure all trustees sign the deed.
- Pay Stamp Duty:
The Trust Deed requires a stamp duty assessment. The Kenyan Revenue Authority (KRA) will determine the fee.
- Register the Trust Deed Online:
Head to the Business Registration Service (BRS) portal: https://brs.go.ke/ and register the trust deed electronically. You can also login to you ecitizen account and register under the business registration service. Here is the link to the ecitizen login https://accounts.ecitizen.go.ke/en
- Petition for Incorporation:
Note: This step is recent (June 2024).
Prepare a petition requesting the trust’s official incorporation. Have it commissioned by a Commissioner for Oaths.
The Cost of Setting up a Trust in Kenya
The fee for incorporation of a trust in Kenya is KES 10,050
Requirements for Registering a Trust in Kenya
The following information is required for the incorporation of a trust;
- Proposed name which must have the word ‘Registered Trustees’ at the end;
- Objects or purpose of the trust;
- A duly completed application for incorporation in the prescribed form (Form TR1) (available on brs.go.ke); Click Here to download
- A Petition to have the trust incorporated (the document must be commissioned by a Commissioner for Oaths);
- Duly Registered trust deed (registered under RDA with the Ministry of lands) or constitution;
- Statement of donor funding/commitment;
- Title deed belonging to the trust or one of the trustees or other documents of asset or property ownership.
- Current search indicating ownership position of assets listed;
- Financial statement of the organization or of one trustee such as a current bank statement;
- Minutes appointing the Trustees;
- Brief Summary of the Trust (should not exceed 1 Page);
- Curriculum vitae of the trustees or employees;
- Diagrammatic representation of the common seal;
- Certified copies of ID, KRA Pin and passport photos of the Settlor, Trustees, beneficiaries and enforcers if any.
Additional Resources:
Business Registration Service (BRS): https://brs.go.ke/
E-citizen portal – https://accounts.ecitizen.go.ke/en
Consulting a Lawyer is Recommended:
While this guide provides a general framework, seeking legal counsel from an experienced lawyer is highly advisable. They can ensure your specific needs and circumstances are addressed throughout the trust creation process. Additionally, smart catalyst in here to help you in this process, get in touch with us
