The Trust Administration Bill, 2026

## SPECIALISSUE Kenya Gazette Supplement No. 124 (National Assembly Bills No.29) <!-- image --> ## REPUBLICOFKENYA ## KENYA GAZETTE SUPPLEMENT NATIONALASSEMBLYBILLS,2026 NAIROBI,20thMay,2026 ## CONTENT | Bill forIntroduction into theNational Assembly- | PAGE | |---------------------------------------------------|--------| | The TrustAdministrationBill,2026 | 1091 | <!-- image --> ## THETRUSTADMINISTRATIONBILL,2026 ARRANGEMENTOFCLAUSES ## Clause ## PARTI-PRELIMINARY - Short title. - 2——Interpretation. - 3 ——Application of the Act. ## PARTI-TRUSTAND TRUSTFORMATION ## Creation of a trust - 4—Creation of trust. - 5 - Registration or incorporation of written trust. - 6—Invalidationofa trust. - 7—Irrevocable trusts. ## Types of Trusts - 8—Charitable trusts. - 9-Non-charitable purpose trust. - 10-—Family trust. - 11—Limitation of thenumber of trustees. ## Parties to a trust - 12Settlor. - 13Powers of a settlor. - 14-Enforcer of a trust. - 15Functions of an enforcer. - 16—Access to documents by enforcer. - 17— Cessation of appointment of enforcer. - 18Protection from personal liability. - 19——Beneficiaries of a trust. - 20 —— Class of beneficiaries. - 21—Disclaimer ofinterest. ## PART III-REGISTRATION OF A TRUST - 22 Registration of a trust. - 23 —— Contents of a deed. - 24 —Issuance of Certificate of Registration. - 25 ——Refusal to issue a certificate. - 26Revocation of certificate. - 27 —Effect of registration. ## PART IVINCORPORATION OF A TRUST - 28Name of incorporated trust. - 29 Requirements for incorporation. - 30 —Issuance of Certificate of Incorporation. - 31——Refusal to incorporate - 32Effect of incorporation. - 33 — Incorporation of a registered trust. PARTV-PROPERTY OF A TRUST - 34 —Property of a trust. - 35— Property acquired illegally. ## PARTVI-TRUSTEES - 36—Qualification and disqualification to act as a trustee. - 37—Appointment of Trustee. - 38 — Power of appointing substitute or additional trustees. - 39 Resignation of trustee. - 40Removal of a trustee. - 41 -Death or dissolution of a trustee. - 42—Effect of change of trustee. ## PARTVII-DUTIES AND GENERALPOWERS OF TRUSTEES - 43 —Duty of trustee to exercise reasonable care, skill - and diligence. - 44Duty of trustee to act within powers. - 45 Duty of trustee not to profit from trusteeship. - 46Duty to preserve the trust property. - 47 Duty to keep trust property separate. - 48Duty to keep records. - 49Access to information. - 50 —— Power to apply income for maintenance and to - accumulate surplus income during a minority - 51— - Power to manage and control trust property. - 52 Power to delegate functions. - 53——Power to appropriate. - 54Power of sale and lease. - 55Power toborrow. - 56-Power to distribute trust property. - 57 —Power to sue and settle claim. - 58 Power of Attorney. - 59——Power to insure. ## PARTVIII-REMUNERATION,INDEMNITY AND ## LIABILITYOFATRUSTEE - 60—Remuneration and expenses. - 61——Liability. - 62——Indemnity. - 63 — Register and records to be kept by the trust - 64—Accounting records. ## PARTIX-BENEFICIAL OWNERS OFA TRUST - 65——Register of beneficial owners. - 66——Lodgement of the Register. - 67—Changes to the beneficial ownership - 68—Records of the beneficial ownership. - 69 Breach of this Part. ## PARTX-POWERS OF THE COURTIN RELATIONTO VESTING ORDERS - 70-Vesting orders - 71 Power to appoint person to convey. ## PARTXI-PROVISIONS RELATINGTO THE CHANGEOF NAME,FILINGOF ANNUAL RETURNSANDAPPOINTMENTOFTRUSTAGENT - 72 Change of name of a trust. - 73 Power to direct change of name by the Registrar. - direction under s.73. - 75Annual returns. - 76 —Trust agent. ## PART XII-REGISTRAR AND REGISTER OF TRUSTS - 77-Designation of the Registrar and other officers. - 78 The Register and functions of the Registrar. - 79Power to issue directives by the Registrar. - 80——Electronic lodgment of documents with Registrar. - 81 Registrar's official seal. - 82 —Rectification. - 83 -Fees payable to the Registrar. ## PART XIII-DISSOLUTION OFA TRUST - 84Dissolution of a trust. - 85Withdrawal of an application to dissolve. - 86Restoration where dissolution was by mistake. - 87—Restoration by Court. - 88—Effect of restoration. - 89-Dealings with property upon dissolution. ## PART XIVMISCELLANEOUS PROVISIONS - 90 Electronic filing and keeping of records. - 91-Compliance to the Data Protection Act - 92-Lodging of false or misleading documents - 93——General penalty. - 94—Dispute resolution. ## PART XV-PROVISIONS ON DELEGATED POWERS - 95Regulations. ## PARTXVI-REPEAL,TRANSITIONALAND SAVINGPROVISIONS - 96Consequential amendment to Cap.285 - 97Repeal. ## THETRUSTADMINISTRATIONBILL,2026 ## A Bill for AN ACT of Parliament to consolidate and reform laws relating to the registration, incorporation, management and regulation of trusts and trustees and for connected purposes ENACTED by theParliament ofKenya,asfollows ## PARTI-PRELIMINARY 1. This Act may be cited as the Trust Administration Act,2026. 2. 2.In this Act unless,the context otherwise requires- "beneficiary"means a person entitled to benefit under a trust and includes a discretionary beneficiary in whose favour a discretion to distribute property held on trust may be exercised; "beneficial owner" has the meaning assigned to it under section 3(1) of the Companies Act; "competent authority" means the Attorney-General, any criminal investigation agency established by law,a law monitors the financial sector,including, the Central Bank of Kenya,the Financial Reporting Centre and the Kenya Revenue Authority; "corporate trustee" means an entity registered in Kenya and licensed under this Act to act as a trustee; "designated non-financial business or professionals" has the meaning assigned to it under section 2 of the Proceeds of Crime and Anti-Money Laundering Act; "discretionary beneficiary"means a person who benefits under a trust at the discretion of the trustee but does not have a fixed,vested,or contingent interest in the trust property; meansatrustwherethe beneficiaries sorthebenefitsof thetrust become ascertainable once the trust deed sets-out the criteria or at "discretionarytrust" the discretion of the trustees; Short title. Interpretation. Cap.486. Cap.59A. "enforcer" means a person appointed as such under section14(1); "financial institution"has the meaning assigned to it under section 2 of the Proceeds of Crime and Anti-Money Laundering Act; "founder" means a person who provides or donates property or makes a testamentary disposition on a trust or toa trust with an intention to establish a trust and "donor" has a corresponding meaning; "personal representative"has the meaning assigned to it under the Law of Succession Act; "Registrar" means the person designated as the Registrar of Trusts under section 77 of this Act; "settlor" means a person who establishes a trust in accordance with this Act and includes a founder or a donor; "trust" means a trust created in accordance with section 4 of this Act; "trust agent" means an advocate of the High Court of Kenya,a certified secretary or a certified accountant authorized to act on behalf of the trust; "trust deed"means a document that sets out the objects of a trust and the rules,regulations,terms and conditions regulating its affairs thereof; "trustee"means a person,including the founder, donor or settlor of a trust,who is authorized to act as a trustee in terms of this Act,including a person whose authorization to act as a trustee is in force at the commencement of this Act;and other movable,immovable,corporeal or incorporeal property,including any rights, interests or claims in that property which is administered by a trustee in accordance with theprovisions of a trust deed. 3. This Act shall apply to all trusts created and trustees appointed under this Act or any other written law in relation to obligations and duties of trustees. Cap160. Application of the Act. ## PART II-TRUST AND TRUST FORMATION ## Creation ofa trust - 4.A trust is created where there is a legal arrangement in terms of which ownership of property of a person is transferred,conveyed or assigned in whole or in part,to the trustee,to be administered and controlled,or disposed ofin accordance with the terms of a trust deed,operation of law, or by order of the court for the benefit of the person or class - ofpersons or for the achievement of a specific object. - 5.(1) A written trust shall be valid and enforceable if it has been registered or incorporated in accordance with the terms of the trust deed and this Act. - (2) Unless a written trust is registered or incorporated, no document evidencing the existence of a trust in writing shall be received as evidence in any transaction affecting the property to which the document relates,except with the consent of the court and upon such terms and conditions as the court may impose: Provided that nothing in this Act shall make any document inadmissible in any criminal proceeding. - 6.（l) Without limiting the grounds on which a trust may be declared invalid under this Act or any other applicable law,a trust may be declared invalid if- - (a) it is created for a purpose or purports to do anything which is illegal in Kenya; - (b) it has no identifiable or ascertainable beneficiary unless the trust is for non-charitable purposes; - （c)it is established by duress,fraud,misrepresentation orin breach of a fiduciary duty; - (d) the terms are so uncertain as to renderperformance - impossible; - (e) the settlor had no legal capacity to create the trust; - or - (f) the trust has not been registered or incorporated in accordance with section 5 - (2) A trust shall not become void by virtue of Creation of trust. Registration or incorporationof writtentrust. Invalidation ofa trust. - (a) the settlor's bankruptcy; - (b) liquidation of the settlor's property;or - （c) proceedings or a suit against the settlor by the creditors. - (3) The Court may declare a trust to bevoid where it is proven that the trust was made for fraudulent purposes, including to evade creditors of the settlor. - (4) Where a trust is created for two or more purposes ofwhich some are lawful and others are unlawful,- - （a) if those purposes cannot be separated, the trust shall be invalid;and - (b) where the purposes can be separated, the Court may declare that trust is valid as to each purpose that is lawful. - (5) Where a trust is partially invalid, the Court may determine the property that is trust property and the property that isnot trustproperty. - 7.(1) A trust shall be deemed to be an irrevocable trust unless the trust deed contains an express power of revocation. - (2)A revocable trust shall be deemed to be irrevocable if an express power of revocation has not been exercised by the settlor during the lifetime of the settlor. ## Types of Trusts - 8.（l) A charitable trust is a trust formed for the exclusive purpose of therelief of poverty,the advancement of education, religion, human rights and fundamental freedoms,the protection of the environment or any other purpose beneficial to the general public. - (2) A trust shall be deemed to be charitable if- - (a) the charitable objects may be pursued in Kenya or elsewhere; - (b) the objects are beneficial to the general public or a section of the public; - (c) the trust is discretionary; and Irrevocabletrusts. Charitable trusts. - （d) the trustee has power to defer distribution of the assets of the trust to any charity or other beneficiary of the trust for a period not exceeding the duration of the trust as may be provided under the trust deed. - (3) A charitable trust shall be a non-trading entity. - 9.(1) A non-charitable purpose trust is a trust established to fulfil a specific purpose that does not qualify as charitable under the law. - (2) A non-charitable purpose trust may be created for a specific purpose notwithstanding the absence of any beneficiary. - (3) A non-charitable purpose trust is valid if- - （a) the purpose,whether partly charitable or not,for which the trust is created is specific,capable of fulfillment and is not illegal;and - (b) the terms of the trust provide for the disposition of surplus assets of the trust upon its termination. - 10.(l) A family trust is a trust,whether living or testamentary,partly charitable or non-charitable,that is planning or managing their personal estate. - (2)A family trust shall be- - （a) made in contemplation of beneficiaries,whether such intended beneficiaries are directly related to - the settlor or not; - (b) made for the purpose of preservation or creation of wealth for generations;and - (c) a non-trading entity. - (3) Notwithstanding subsection (2),a family trust shall not be invalid for the reason that the settlor or joint settlors are also beneficiaries to the trust. - 11.(1) A charitable and a non-charitable purpose trust - corporate trustee. Non-charitable purpose trust. Family trust. Limitation of the numberof trustees. - (2)A family trust shall have at least one trustee. - （3)A trust shall,where the trustees are natural persons,have at least one trustee who is a Kenyan citizen or a resident of Kenya,as prescribed in the Regulations. ## Parties to a trust - 12.(1) Subject to this Act, a settlor who has the legal - capacity to contract,may create a trust by providing trust disposition to that trust. - (2)A settlor shall be deemed to have the legal capacity - to create a trust if,at the time he or she transfers or otherwise vests trust property in a trust,he or she is not a minor and is ofsound mind. - (3) A settlor may also be a trustee,a beneficiary or an enforcer but shall not be the sole beneficiary of a trust for which he or she isa settlor. 13. (1) A settlor may, subject to the terms of the trust - deed and this Act,have powers to- - (a) revoke, vary or amend the terms of the trust; - (b) direct or approve the advancement, distribution or application of income or capital of the trust property; - (c) give directions to the trustee in connection with the purchase,retention,sale, management,lending, pledging or charging of the trust property or the exercise of any powers or rights arising from such property; - （d) appoint or remove any trustee, enforcer or - discretion or right, or who acts in connection with the trust or with trust property; - (e) - appoint or remove a trust agent;or - restrict the exercise of any powers or discretions of - atrustee. - (2) The grant of powers under this section shall not confer on the settlor the right to act as a trustee. Settlor. Powersofa settlor. - (3) In exercising the powers under this section,a 2. settlor may delegate any of the powers to a trustee or any other person. - (4) A trustee or any other person who exercises the powers granted by the settlor under subsection (3) shall 4. comply with the terms of the trust deed and this Act. 14. (1) Subject to the terms of a trust deed, a settlor or, in the absence of a settlor,a beneficiary may appoint one or 6. more persons as an enforcer or enforcers of a trust. - (2) Where a person is appointed as an enforcer under subsection (1), that person or the trustee shall, in the specified manner,notify the Registrar within twenty-one 8. days from the date of appointment. 9. 15.(1) The functions of an enforcer may,subject to 10. subsection (2),include 11. (a) enforcing the terms of the trust deed; 12. (b) inquiring into the status of implementation of the trust; 13. （c)requiring the trustee to take remedial action,where 14. there is breach of the terms of the trust deed; 15. (d) reporting to the settlor or the beneficiaries any financial or other breaches by the trustees;and 16. (e) pursuing legal action against the trustees,whether 17. criminal or civil. - (2) A person shall not perform the functions of an enforcer set out in subsection (l) if that person is also a 19. trustee. - (3) An enforcer shall not- 21. (a) directly or indirectly profit from the enforcer's 22. appointment; 23. (b) cause or permit any other person to profit directly 24. orindirectly from the enforcer's appointment;or 25. (c) on the enforcer's own account, enter into any 26. transaction with the trustees or relating to the trust property which may result in such profit. Enforcer ofa trust. Functions of an enforcer. - 16.An enforcer shall have access to any documents, trust deed,accounts or any other information necessary for the performance of his or her functions. - 17.(l) An enforcer shall cease to be an enforcer of a trust where he or she- - （a) resigns by notice in writing to the appointing authority and the trustee; - (b) isremoved from the role by court; - (c) is removed from the role by the appointing authority; - (d) dies; - (e) is appointed as a trustee of the trust; or - ceases to be an enforcer by virtue of the coming into effect of a provision in the terms of the trust under which the enforcer is removed from office or otherwise ceases tohold office. - (2) Where an enforcer ceases to be an enforcer under subsection (l),a trustee shall notify the Registrar,in the specified manner,within twenty-one days of the cessation. - (3) Where there is a change of an enforcer of a trust,a trustee shall lodge with the Registrar a copy of the notice of any change of enforcers within twenty-one days from the date of the change as prescribed by the Regulations. - (4) A trustee who fails to comply with the provisions of subsection (2) or (3) of this section shall be liable to an - administrative sanction of- - （a) five thousand shillings,where the trustee in default is a natural person;or - (b) ten thousand shillings,where the trustee in default - is abody corporate. - 18.An enforcer or a person acting as an officer, employee or agent of the enforcer or performing any duty on behalf of the enforcer shall not be liable todamages for anything done or omitted to be done in the discharge or of the duties of the enforcer under this Act or under the terms of the trust,unless it is proved that the act or omission constituted or arose from the person's own fraud, dishonesty or willful misconduct. documentsby Access to enforcer. Cessation of appointment of enforcer. Protection from personal liability - 19.(l) A beneficiary of a trust shall be- - （a) identifiable by name;or - (b) ascertainable by reference to- - (i) a class; or - (ii) a relationship with another person,whether living or not,at the time of the creation of the trust. - (2) Subject to subsection (1), the terms of a trust may expresslyprovide for the addition or exclusion of a person as beneficiary or for the exclusion of a beneficiary from benefit under the trust. - (3) The terms of a trust may impose an obligation or condition on a beneficiary as a requirement for receiving benefits under the trust. - (4) A settlor or a trustee of a trust may also be a - beneficiary of the trust. - 20.Where a trust is created in favour of a class of beneficiaries- - (a) the class shall be deemed to close when it is no longer possible for any person to become a - member of that class;and - (b) where the interests in a class relate to income,and no member of the class exists,the income shall be accumulated and retained until the member of the - class comes into being. 21. Subject to the terms of the trust deed,a - beneficiary may,in writing to the trustees, disclaim his or her interest or any part of it,under the trust whether or not he or she has received any benefit from the trust. ## PARTIII-REGISTRATION OF A TRUST - 22.(l) A person who wishes to register a trust shall lodge with the Registrar an application for registration of a trust in a prescribed manner. - (2) The application for registration of a trust under subsection (l) shall be accompanied by- - (a) a trust deed; Beneficiaries of a trust. Classof beneficiaries. Disclaimerof beneficial interest. Registration of a Trust. - (b) the prescribed fee; - (c) a copy of the register of beneficial owners as prescribed in the Regulations; - (d) statement of initial trust property in the form - prescribed by the Regulations; - （e) statement of the initial enforcers of the trust, giving a written acceptance to act as enforcers in respect of the trust property,in the form prescribed by the Regulations; - （f)a copyof thecourt order if the trustwas created by an order of the cour;and - （g) such other information or documents as may be prescribed by the Regulations or any other written - law. - (3) An application lodged with the Registrar under - subsection(l) shall- - （a) indicate the nature and type of trust; - (b) give details on the date the trust was established; - (c) state the purpose of the trust; - (d) provide details of the settlor; - (e) state the details and description of the beneficiaries; - (f) indicate details of the initial trustees; - （g） indicate details of the initial enforcers,if any; - (h) state the details and description of the beneficial - owners; - (i) indicate the proposed registered address of the trust or the address of the trust agent; and - provide any other details as may be prescribed in the Regulations. - （4)If the application for registration is submitted bya trust agent on behalf of the settlor or trustees,the trust agent shall include their name and address and their acceptance to act as such on behalf of the settlor or trustees. - 23.(1) A trust deed shall- - （a) set out terms and conditions for creating and - managing a trust; - (b) set out the process of appointment and removal of trustees; - (c) state that the trustees have agreed to act as trustees of the trust; - (d) indicate the type of trust and its purposes; - (e) specify the trust property; - (f) contain information of theinitial trustees, - including names,addresses and their roles; - （g)contain information of the trustee or enforcer,if applicable, including written acceptance to act as such; - (h) where applicable, indicate whether the trustee must provide security in terms of the trust instrument or is exempted from payment of security; - (i) identify the beneficiaries by name or a clear description of the class of beneficiaries of the trust; - and - (j) contain any other information that may be prescribed in the Regulations or any other written - law. - (2)A trust deed shall be executed by the settlor or his representative and the trustees and the signature shall be attested by a witness who shall provide details including their occupation and postal address. - 24.(l) If satisfied that an application for registration - of a trust complies with the requirements of this Act, the Registrar shall register the trust. - (2) Upon registration,the Registrar shall issue to the - applicant a certificate of registration that contains- - （a) name of the trust, ending with the words - 'Registered Trust'; Contents of a trust deed. Issuance of Certificate of Registration. - (b) a unique identification number assigned to the - trust; - (c) the date of registration; - (d) the type of trust;and - (e) any other information as may be prescribed - （3)The Registrar shall sign the certificate of - registration and authenticate it with the Registrar's official seal or as may otherwise beprescribed in the Regulations. - 25.(1) The Registrar shall refuse to register a trust under this Actif satisfied that- - (a) the trust is likely to be operated for an unlawful purpose or for purposes prejudicial to public peace,welfare or good order in Kenya; - (b) it would be contrary to the national security or public interest for the entity to be soregistered; - (c) the trust does not meet the requirements stipulated under this Act;or - (d) upon a charitable or non-charitable trust being subjected to a vetting process, adverse findings have been found. - (2) Where the Registrar refuses a registration under subsection (1)of this section,the Registrar shall,in writing and within fourteen daysof making a determination,notify the applicant of his or her decision and the reasons for the - refusal. - 26.The Registrar may, pursuant to a court order, - revoke a registration of a trust under this Act. - 27.(1) A certificate of registration of a trust is - conclusive evidence that- - (a) the requirements relating to registration,under this Act have been complied with;and - (b) the trust has been registered as an unincorporated - trust as at the date stated on the certificate. - (2) The certificate of registration shall not confer the trust legal personality. Refusal to issue a certificate Revocation of certificate. Effect of registration. ## PARTIV-INCORPORATION OFATRUST - 28.The Registrar may, upon application, reserve a - name pending incorporation of a trust. - (2) The Registrar may not reserve a trust by a name if- - (a) it is identical to that of any other name appearing in the Registrar's index of names; - (b) the use of the name would contravene any law or - constitute an offence; - （c) the name consists of abbreviations,characters or initials not authorised by or under this Act or the Regulations made thereunder; - （d) the Registrar,after taking into account the relevant criteria,is of the opinion that the name is misleading,offensive or undesirable; - （e) the name appears in the Registrars index of names, that has been revoked or dissolved;or - (f) the name does not meet the criteria prescribed in - the Regulations. 29. (1) Upon reservation of a name under section 28 of - tiie application shall-- - (a) be accompanied by a copy of the reserved name of the trust; - (b) indicate details of the trustees; - （c) specify the nature and type of trust; - (d) state the date the trust was created; - (e) provide details of the settlor; - (f) state the details or description of the beneficiaries; - （g) state the details or description of the beneficial - owners; - (h) indicate the details of the enforcer,if any; - (i) state the purpose of the trust;and Nameof incorporated trust. Requirementsfor incorporation. - indicate the proposed registered address of the trust;or - (k) in the case of a family trust,indicate the proposed registered address of the trust or the address of the trust agent. - (2) An application for incorporation of a trust shall accompanied by- - (a) the trust deed; - (b) the prescribed fee; - (c) statement of initial trust property in the form - prescribed by the Regulations; - (d) a copy of the register of beneficial owners;and - （e) such other information or documents as may be prescribed by the Regulations or required under - this Act. - (3) If the application for incorporation is submitted by a trust agent on behalf of the settlor,trustees,the trust agent shall include their name and address. - 30.(1) Upon incorporation,the Registrar shall issue to the trust a certificate of incorporation that complies with this section and shall state- - （a) the name of the trust ending with the word "Incorporated Trust"; - (b) a unique identification number; - （c) the date of incorporation;and - （d) the type and nature of trust. - (3)The Registrar shall sign the certificate of incorporation and authenticate it with the Registrar's official seal or as may otherwise be prescribed in the Regulations. - （4) The certificate of incorporation is conclusive evidence that the requirements of this Act relating to incorporation have been complied with and the trust is duly incorporated. - 31.(1) Without limiting the provisions of this subsection,the Registrar shall refuse to incorporate a trust under this section if satisfied that- Issuanceof Certificateof Incorporation. Refusal to incorporate. - (a) the trust is likely to be operated for an unlawful - purpose or for purposes prejudicial to public peace,welfare or good order in Kenya; - (b) it would be contrary to the national security or public interest for the entity to be so registered; - (c) the trust does not meet the requirements stipulated - under this Act;or - （d) upon a charitable or non-charitable purpose trust being subjected to a vetting process adverse findings have been found. - (2) Where the Registrar refuses to incorporate a trust under this section,the Registrar shall,in writing and within fourteen days of making a determination,notify the applicant of his orher decision and reasons for the refusal. - 32.From the date of incorporation of a trust, the Trust - shall become a body corporate by the name described in the certificate capable of- - (a) having perpetual succession; - (b) suing and being sued; - (c) acquiring, owning, holding and developing or disposing of property in its name;and - (d) doing such other acts a body corporate may - lawfully do. - 33.(l) A registered trust may apply to the Registrar - for a certificate of incorporation in the manner prescribed in the Regulations. - (2) A registered trust shall provide the details required - in section 29 of this Act in an application forincorporation. - （3) The Registrar,shall,upon being satisfied that the trust has met the requirements of this Act in relation to incorporation, issue thetrust withacertificateof incorporation. - （4) The certificate of incorporation shall bein accordance with theprovisions of section 30 of this Act and may contain any other particulars that the Registrar may determine. - (5)Uponbeing issued with acertificateof incorporation, the trust shall cease to exist as a registered Effectof incorporation. Incorporation ofa registered trust. trust and shall become a body corporate by the name described in the certificate. ## PARTV-PROPERTY OF A TRUST - 34.(l) A trustee shall deal or manage theproperty of a trust in accordance with the terms of the trust deed,without any deviation or derogation,unless explicitly authorised by the terms of the trust deed,by a court of law or a written - law. - (2) Where a trust is revoked or declared invalid,the property under the trust shall be dealt with in accordance with the termsof thetrust deed orbya determination of the court if there is no provision in the trust deed to this effect. - 35.Any property acquired illegally or through unlawful means shall not form part of the property of the trust and such property may be subject to recovery and forfeiture under the Proceeds of Crimes and Anti-Money Laundering Act or any other enabling law in relation to the offence committed in the process of acquiring the property. ## PART VI-TRUSTEES - 36.(1) A person shall qualify to act as a trustee if that person- - (a) is above the age of eighteen years; - (b) is of sound mind; - （c) is not disqualified under any other written law - from appointment as such;and - (d) meets any other requirement as may be prescribed - in the Regulations. - (2) A person shall be disqualified for appointment as a - trustee if that person- - （a) is disqualified from acting as a director or secretary of a company in accordance with the Companies Act; - (b) is disqualified from acting as a liquidator or administratorunder theInsolvency Act; - (c) has been declared mentally incapacitated under the Mental Health Act; Property of a trust. Property acquired illegally Cap.59A. Qualification and disqualification to act as a trustee. Cap.486. Cap.53. Cap.248. - （d) has been convicted of a criminal offence which attracts imprisonment for a term exceeding six months; - （e) has been convicted of corruption or an economic crime;or - （f) is an undischarged bankrupt or,in the case of a - corporate trustee,is declared insolvent. - (3) An entity shall qualify to act as a corporate trustee - if that entity- - （a) is a company incorporated under the Companies - Act whose main object is to provide corporate trustee services; - (b) is not disqualified under any other written law from appointment as such; - （c) is licensed to act as such under any other relevant - written law;or - (d) meets any other requirement as may be prescribed in the Regulations. - (4) A corporate trustee shall be required to have a local contact person who is a natural person and a resident of Kenya,as prescribed in the Regulations. - (5) For purposes of subsection (2), the words "corruption"and "economic crime" have the meaning assigned to them under the Anti-Corruption and Economic Crimes Act. - 37.(l) A person may act as a trustee of a trust if - appointed as a trustee- - (a) under the terms of the trust deed; - (b) through a court order; or - (c)under the Public Trustee Act. - (2) A trustee shall notify the Registrar of his or her appointment within twenty-one days of the appointment in the form prescribed in the Regulations and shall be accompanied by- - （a)a written consent by the trustee to act in that capacity and be bound by the terms of the trust deed;and Cap.65. Appointment of trustee. Cap.168. - (b) the prescribed fee. - (3) If a trustee fails to comply with subsection (2), the trustee shall be liable topay an administrative penalty of- - （a) seven thousand shillings,if the trustee in default is a natural person;or - (b) fourteen thousand shillings, where the trustee in default is abodycorporate. - 38.(l) Where a trustee has been disqualified to act as a trustee under section 36 of this Act or has otherwise ceased to be a trustee under this Act or any other applicable law,the powers of appointment of additional trustees shall be exercised in accordance with the trust deed. - (2) Where the trust deed does not provide for the process of appointment of additional trustees- - (a) the existing trustee may appoint tadditional trustees;or - (b) the beneficiaries or the enforcer,if any, shall make trustees. - (3) Where a trustee- - (a) in the case of a natural person,is dead or incapable of acting; - (b) in the case of a corporation,has been dissolved; - (c) desires to be discharged from all or any of the trusts or powers conferred on him or her; - (d) refuses to act in accordance with the trust deed; - (e) has been removed under a power contained in the trust deed; or - （f)in the case of a charitable trust or where a limit has been provided in the trust deed,the number goes below the minimum required number of trustees, an additional trustee may be appointed in accordance with subsection(4). - （4) An additional trustee referred to under subsection (3) may be appointed by- Powerof appointing substitute or additional trustees. - (a) the settlor or in their absence, the enforcer, if any; - (b) the - person nominatedfor the purposeof appointingnew trustees by the trust deed; - (c) the surviving or continuing trustees;or - (d) the Court. - (5) A new trustee appointed under this section shall have the same power, authority and discretion and may in all respects act as if he or she had been appointed a trustee under the trust deed. - (6) Where an incapacitated trustee is the sole beneficiary, no appointment of a new trustee in his or her place shall be made by the continuing trustees or trustee, under this section,unless leave has been given by court. - (7) A trustee appointed through a court order shall- - (a) have the same power,authority,and discretion and may in all respect act as if they had been appointed - a trustee under the trust deed; or - (b) act in accordance with the orders of the court. - (8) The trustees shall notify the Registrar of the appointment of a new trustee within twenty-one days of the appointment in the form prescribed in the Regulations and shall be accompanied by-- - （a)a written consent by the trustee to act in that capacity and be bound by the terms of the trust - deed;and - (b) the prescribed fee. - (9) If the trustee fails to comply with subsection (8), the trustee shall be liable to an administrative penalty not exceeding thirty thousand shillings. - 39.(1) Unless the trust deed provides otherwise,a - trustee mayresign by issuing a written notice of resignation to his co-trustees or in the case of a sole trustee, to the beneficiaries. - (2) A resignation under subsection (1) shall have no effect if it- - (a) is given to facilitate a breach of trust; or Resignation of trustee. - (b) is contrary to the provisions of the trust deed. - (3) The court may appoint the public trustee to act as a trustee of a trust where there is no trustee capable of acting as a trustee and the trust deed does not provide for the mechanism of appointing a trustee. - (4)A trustee shall cease to be a trustee ofa trust immediatelyupon- - (a) his or her removal by the Court; - (b) the trustee'sresignation becoming effective; - （c) being disqualified to act as a trustee under section 36 of this Act; - (d) the coming into effect of a provision in the terms of a trust deed underwhich the trustee is removed from office or otherwise ceases to hold office;or - （e) the institution or commencement of bankruptcy or insolvency proceedings against the trustee. - (5) A person who ceases to be a trustee under this - section shall upon cessation- - (a) vest the trust property in the new or continuing trustee or the trust,in the case of an incorporated trust;and - (b) surrender documents of title,accounts and records relating to the trust and held byhim or her inhis or her capacity as a trustee. - (6) A person who fails to comply with theprovisions of subsection (5) commits an offence and shall be liable, upon conviction,to a fine not exceeding five hundred thousand shillings or a prison term of one year,or to both. - (7) A trustee may apply to court for orders compelling persons who have ceased to be trustees to produce anything their trusteeship. - (8) A trustee who resigns in order to facilitate a breach of trust shall beliablefor that breach as ifheor shehad not resigned. - (9) The trustees shall notify the Registrar of the resignation of the trustees within twenty-one days of the resignation in the form prescribed in the Regulations. - (10) A trustee who fails to comply with subsection (9) shall be liable to an administrativepenalty of- 2. (a) seven thousand shillings,if the trustee in default is a natural person;or 3. (b) fourteen thousand shillings,where the trustee in 4. default is a body corporate. 40. (1) Any person that has a legitimate interest in a 6. trust may apply to court for the removal of a trustee and if the court is satisfied that the removal of the trustee is in the interest of the trust and the beneficiaries of the trust,the courtmay issue an order for removal of that trustee. - (2) Despite subsection (1),a trustee may be removed in accordancewith the terms of the trust deed. - (3) Before removing a person as a trustee under subsection (2), the trustee shall be given a twenty-one-day 9. writtennotice of theintention toremove the trustee. 10. （4) If a trustee is removed,the trustees of the trust shall file a notice of removal of the trustee with the Registrar within twenty-one days of such removal in the manner prescribed in the Regulations. - (5) If the trustee fails to comply with subsection (4) 12. the trustee shall be liable to an administrativepenalty of 13. (a) seven thousand shillings,if the trustee in default is a natural person;or 14. (b) fourteen thousand shillings,where the trustee in default is a body corporate. 15. 41.(l) Where a power or function of a trustee is vested in two or more trustees jointly and one of those trustees dies or in the case of a body corporate,is dissolved, the surviving trustees may exercise such powers or perform such functions to allow the trustee or them to maintain and preserve the trust and trust property, for a period not exceeding thirty days,pending the appointment of a new trustee in accordance with section 37 of this Act,in the place of the trusteewho died orwas dissolved. - (2) If a sole trustee or the last surviving or continuing trustee dies or in the case of a body corporate, is dissolved, 17. and the trust deed does not provide for the replacement of Removal ofa trustee. dissolution of a Death or trustee. court to make an order for the appointment of a new trustee. - （3) The trustees shall notify the Registrar of the replacementwithin twenty-one days of the appointment in the form prescribed in the Regulations. - (4)If the trustee fails to comply with the provisions of subsection(3),thetrustee shall be liable toan administrativepenalty of- - （a) seven thousand shillings,if the trustee in default is a natural person;or - (b) fourteen thousand shillings,where the trustee in default is a body corporate. - 42.A change in the trustees of a trust shall not affect the existence,rights or obligations of the trust. ## PARTVII-DUTIESAND GENERALPOWERSOF TRUSTEES - 43.(l) In carrying out the powers conferred to a trustee,a trustee shall exercise care,skill and diligence asit is reasonable in the circumstances,having regard to- - （a) the general knowledge,skill and experience that - may reasonably be expected of a person carrying out the functions performed by a trustee in relation to the trust; - (b) any special knowledge or experience that he or she has or holds himself orherself out as having;and - （c) when he or she acts as a trustee in the course of a business or profession,any special knowledge or experience that may reasonably be expected of a person acting in the course of that kind of business or profession. - (2) Despite the generality of subsection (1),a trustee shall,in exercise of his or her powers- - (a) know the terms of the trust deed; - (b) act in accordance with the terms of the trust instrument; Effect of change of trustee. Duty of trustee to exercise reasonablecare, skill and diligence. - (c)act honestly and in good faith; - (d) hold or deal with trust property and act for the - benefit of the beneficiaries or to further the permitted purpose of the trust; - （e) avoid a conflict between his or her interests and the interests of the trust or any of the beneficiaries - of the trust; - （f) where a trust has more than one beneficiary,treat all beneficiariesimpartially and in accordance with the terms of the trust instrument;and - （g)not take remuneration or reward in his or her capacity as trustee except the remuneration and expenses contemplated insection 60 of this Act. - 44.(1) A trustee shall execute,administer the trust and exercise his or her function in accordance with the provisions of this Act,and terms of the trust deed and only in the interest of the beneficiaries or advancement of the charitable or non-charitable purpose,as the case may be. - (2) The trustees shall,at all times,act jointly in the - exercise of theirpowers and performance of their functions in accordance with the terms of the trust deed. - (3) Where the trust deed does not provide for the manner in which the trustees shall exercise their powers and perform their functions relating to decision making, amendment of the trust deed,dissolution of a trust or variation of an entitlement under the trust,the trustees may make an a application to court for guidance orfor any such orders as the court may deem fit in the circumstances. - (4)A corporate trustee may- - (a) act in connection with a trust by a resolution of its board of directors;or - (b) by resolution,appoint an officer or employee or a committee of officers or employees or both,to act on its behalf in connection with the trust. - (5)A corporate trustee shall be required to lodge with - the Registrar a notice of appointment of any person in subsection (4)(b) within twenty-onedays of such appointment. Duty of trusteeto act withinpowers - （6)If the corporate trustee fails to comply with subsection (5) the corporate trustee shall be liable to an administrative penalty of fifty thousand shillings. - 45.Subject to the terms of the trust deed,a trustee shall not- - （a) derive,directly or indirectly,any profit from hisor her trusteeship; - (b) cause or permit any other person to derive any - profit from his or her trusteeship;or - （c) on his or her own account, enter into any transaction with his or her co-trustees relating to the trust property,which may result in any drawing of profit,except- - (i)with the approval of the Court;or - （ii) aspermitted by the provisions of this Act. - 46.(1) A trustee shall,subject to the terms of the trust deed and the provisions of this Act,preserve the value of the trust property vested in him or her. - (2) A trustee shall not dispose off trust property or any - part of it in such a manner as tofrustrate or adversely affect the purpose of the trust and the interest of the beneficiaries. - (3) If a trustee fails to comply with subsection (2) each of the trustees commits an offence and isliable on - conviction- - （a) if the offender is a natural person,to a fine not an - exceeding five million shillings or imprisonment of fiveyears or to both;and - (b) if the offender is a body corporate,to a fine not exceeding twenty million shillings. - 47.(1) A trustee shall keep trust property separate from the trustee's own property and separately identifiable from other property of which he or she is a trustee. - (2)A trustee shall- - （a) indicate clearly in the books of the trust the trust property which he or she holds in his or her capacity as trustee; Duty of trustee not toprofitfrom trusteeship. Duty to preserve the trust property Duty to keep trust property separate. - (b) ensure that any account or investment of a trust kept by a financial institution is identifiable as a - trust account or trust investment;and - （c) in the case of trust property other than property referred to in paragraph (b),make such property identifiable as the trust property in the prescribed manner. - 48.(1) Every trustee shall keep adequate,accurate, and up-to-date records of the trust and all matters relating to the administration of the trust. - (2) The information referred to in the records shall include- - （a) the information relating to the settlor,each trustee - including foreign trustees if any,each enforcer, each beneficiary,and each beneficial owner as prescribed in the Regulations; - (b) information relating to a trust agent of the trust; - （c) the trust deed and any other documents that contain terms of the trust; - (d) the certificate of registration or incorporation; - (e) any amendment of a trust deed and details of its - effect on the trust property; - （f1 records of the trust property that identify the assets,liabilities,income and expenses relating to the trust property and beneficial ownership of the trust property; - (g) any foreign trust administered by the trustees, - including- - (i) details of the foreign trust such as the settlors, trustees,beneficiaries,protectors or enforcers, if any; - (i) information on the beneficial owners of the - foreign trust; - (ii) property of the trust within Kenya;and - (iv)recordsoftransactions connection with Kenya; - that have any Duty to keep records. - (h)all transactions,advisory communications and matters relating to trust accounts including trust - investments; - (i) prescribed details relating to financial institutions - and reporting institutions- - business relationships with and the nature of that - G with which the trust has business relationship; - which the trust uses as agents to perform any of the trustee's functions relating to the trust - property; and - (ii) from which the trust obtains any services in respect of the trustee's functions relating to the trust property; - (i) any written contracts entered into during the tenure - of the trustee; - (k) any records of resolutions of the trustees made - during tenure of the trustee; - (l) any management records and books of accounts - prepared during the tenure of the trustee; - (m) documents of appointment,removal and discharge of trustees,including any court orders appointing or removing trustees; - （n) any reports of material irregularities and how the - trustee dealt with those material irregularities; - (o) a register of charges and security rights created under the Movable Property Security RightsAct or any other law;and - (p)anyother document necessary for the administration of the trust. - (3) The trustees shall ensure that the records are kept - for at least seven years from- - (a) the date of termination or dissolution of the trust; - or - (b) the date they cease being trustees of a trust. Cap.499A - (4) A trustee shall lodge with the Registrar a copy of any amendment to the trust deed or the list of assets within twenty-one days after making the amendment. - (5) A trustee who fails to comply with subsection (4) 3. shall be liable to an administrative penalty of- 4. （a)seven thousand shillings,if the trustee in default is a natural person;and 5. (b)fourteen thousand shillings,if the trustee in default is abody corporate. 6. 49.(i) The trustees shall not use or disclose their trust information except- 7. (a) upon written request of- 8. (i)an enforcer; 9. (i)a beneficiary, subject to the terms of the trust 10. deed;or 11. （ili)a settlor,if such power is specifically reserved under the trust deed; 12. (b) in order to comply with the Proceeds of Crime and 13. Anti-Money Laundering Act; 14. （c) in order to comply with the Preventionof Terrorism Act; 15. (d) in order to comply with a court order;or 16. (e) in order to comply with any other written law. - (2) The trustees shall provide full and accurate information required in subsection (l) within fourteen days of receipt of the request. - (3) Where a trustee fails to comply with the 19. requirements under this section,each trustee who is in default,commits an offence and upon conviction is liable- 20. （a) if the offender is a natural person,to a fine not exceeding one million shillings or to imprisonment 21. for a term not exceeding two years or to both; and 22. (b) if the offender is a body corporate,to a fine not exceeding three million shillings. Accessto information. Cap.59A. Cap.59B - 50.(1) A trustee may,at their discretion,make payments to a parent or guardian of a beneficiary who is a minor for the purposes of the maintenance,education or benefit of the minor from income arising from the property of the trustforwhich theminor is entitled. - (2) Any income not otherwise applied in accordance with subsection (l) may be accumulated and paid to the beneficiary upon the attainment of the age of eighteen years. - 51.A trustee may, subject to the provisions of this Act or the terms of the trust deed,take possession,control, maintain,repair or improve trust property. - 52.(l) A trustee may delegate his or her functions if - permitted by this Act orby the termsof thetrust deed. - (2) In exercising the power under subsection (1),the trustee may- - (a) delegate the management of the trust property to, and appoint,a manager who the trusteereasonably considers to be competent and qualified to manage the trust property; - (b) delegate the power to invest trust property to,and appoint an investment manager who the trustee reasonably considers to be competent and qualified to invest the trust property;and - commission or payment usually payable for services of the description rendered. - 53.Subject to the terms of the trust deed and the duties of the trustee under this Act,a trustee may,without the consent of any beneficiary,appropriate trust property in or towards satisfaction of the interest of a beneficiary in such manner and in accordance with such valuation as he or she considers fit. 54. (1) Where a trustee is authorised by the trust deed for any purpose or in any manner,the trustee shall have and shall be deemed always to have had thepower toraise the money required by sale,conversion,calling in,leasing or mortgage of all or any part of the trust property for the time being in their possession. Power to apply incomefor maintenance and toaccumulate surplus income during minority Power to manage andcontrol trust property Power to delegate functions. Power to appropriate. Power of sale and lease. - (2) Where a trust for a sale or a power of sale of a property is vested in a trustee,he or she may sell or concur property either subject to prior charges or not, and either together or in lots,by public auction or by private contract, subject to any such conditions respecting title or evidence of title or other matter as the trustee thinks fit,with power to vary any contract for sale,and to buy in at any auction, or to rescind any contract for sale and to resell,without being answerable for any loss. - (3) A trustee may lease out trust property on terms that are favourable to the trust. 3. （4) Notwithstanding anything tothecontrary 4. contained in a trust deed, subsection (1) does not apply to trustees ofproperty held for charitable purposes. - (5) No sale made by a trustee shall be impeached by a 6. beneficiary upon the grounds that any of the conditions subject to which the sale was made may have been unnecessarily depreciatory unless it also appears that the consideration for the salewas therebyrendered inadequate - (6) No sale made by a trustee shall,after the execution of the conveyance,be impeached as against the purchaser thesale wasmademay havebeenunnecessarily depreciatory,unless it appears that the purchaser was acting in collusion with the trustee at the time when the contract for sale was made. - (7) No purchaser, upon any sale made by a trustee, 9. may make any objection against the title upon any of the grounds specified in this section. 10. 55.Where a trustee is authorised by the trust deed,or 11. the trustee shall have power to raise the money required by being in possession. 12. 56.A trustee shall distribute the trust property in accordance with the trust deed or this Act. 13. 57.A trustee may sue or be sued in his or her capacity and may settle any action or claim brought by or against the Powertoborrow Powerto distribute trust property. Power to sue and settle claim. trustee or in any way relating to the trust or the trust property. - 58.(1) A trustee may, subject to the provisions of this - Act and the terms of the trust deed,by a power of attorney, delegate for a period not exceeding three years, the performance of any trust or function vested in him or her as trustee,alone or jointly - (2)A power of attorney under this section is - renewable in accordancewith theterms of thetrust deed for a furtherperiod of three years. - (3) A trustee who delegates a function by the power of attorney under this section shall only delegate that power to - a natural person. - （4) For the purposes of this section,a trustee who delegates a function by the power of attorney under this section shall be referred to as the"donor'and the person to whom the function is delegated shall bereferred to as the "donee". - (5) Without prejudice to any applicable law,within - twenty-one days of giving power of attorney under this section,the donor shall give a written notice or as may be prescribed to- - （a) every other person who,under the terms of the trust deed,haspower,aloneor jointly,toappointa new trustee; - (b) every co-trustee;and - (c) the Registrar. - (6) The notice under subsection (5) shall state - (a) the date of commencement and duration of the power of attorney; - (b) the name and address of the donee; - (c) the reason for giving the power of attorney; and - (d) the functions delegated. - (7) Any information that may be prescribed in the failure to comply with subsection (5) or (6) shall not invalidate anything done by the donee. Power of Attorney. - (8) The donor is bound by and liable for all acts and omissions of the donee, done or purportedly done under the omissions. - (9) The donee shall not delegate any of the delegated powers under the power of attorney. 3. （10) Where atrustee fails to comply with the provisions of subsection(5),each trustee who is in default, commits an offence and on conviction is liable- 4. （a) if the offender is a natural person,to a fine not 5. exceeding five hundred thousand shillings or to imprisonment fora term not exceeding two years or to both;and 6. (b) if the offender is a body corporate,to a fine not 7. exceeding two million shillings. 8. 59.A trustee may insure any property which is subject to the trust against risks of loss or damage due to any event and pay thepremiums out of the trust funds. ## PARTVII-REMUNERATION,INDEMNITY AND LIABILITY OF ATRUSTEE - 60.(1) A trustee may, in respect of the execution of his or her official duties,receive remuneration as - authorised by- - (a) the terms of the trust deed; - (b) the consent in writing of every beneficiary; - (c) an order of the court; or - (d) any other written law. - (2)A trustee may pay from the trust property and may reimburse himself or herself from the trust property,for all expenses and liabilities properly incurred in connection with the trust- - (a) in accordance with the terms of the trust deed or any other agreement;or - (b) with the approval of the enforcer,co-trustees or the beneficiaries. Powertoinsure. Remuneration and expenses. - 61.(l) Subject to the provisions of this Act and the terms of a trust deed,a trustee who commits or is party to a breach of trust is liable for- - （a) any loss or depreciation in value of the trust - property resulting from the breach;and - (b) any profit which would have accrued to the trust - had there been no breach. - (2) A trustee shall not set off a profit accruing from - one breach of trust against a loss or depreciation in value resulting from another. - (3) A trustee is not liable for a breach of trust - committed by another person prior to his or her appointment. - （4) A trustee is not liable for a breach of trust - committed by a co-trustee,unless- - （a) the trustee becomes aware or ought to have become aware of the commission of such breach or of the intention of his or her co-trustee to commit a breach of trust;and - (b) the trustee actively conceals such breach or such intention or failswithin a reasonable time to take proper steps to protect or restore the trust property or prevent such breach. - (5) Where two or more trustees are liable in respect of a breach of trust,they shall be liable jointly and severally. - （6) A trustee who becomes aware of a breach of trust to which subsection (3) applies shall take all reasonable steps to have the breach remedied. - 62.(1)A trust deed shall not- - (a) limit or exclude the trustee's liability for any breachof trust arisingfrom thetrustee's dishonesty, willful misconduct or gross negligence;or - (b) give a trustee any indemnity against the trust property for liability for any breach of trust arising from the trustee's dishonesty,willful misconduct or gross negligence. Liability Indemnity - (2) Subsection (l) shall apply to a trust created before or after the commencement of this Act. - (3) The beneficiaries may- 3. (a) relieve a trustee of liability for any breach of trust; or 4. (b) indemnify a trustee against liability for any breach 5. of trust done in good faith. - (4) Subsection (3) shall not apply if a beneficiary- 7. （a) is a minor or person who has been declared to be of unsound mind under the Mental Health Act; 8. (b) does not have full knowledge of all the material 9. facts;or 10. （c)is improperly induced by the trustee to act under 11. subsection (3). 12. 63.(1) A trust shall keep- 13. (a)a certificate of incorporation issued under this Act; 14. (b) a register of prescribed information relating to each settlor,trustee,beneficiaries,enforcers and beneficial owners; 15. (c) a copy of any statement and notices lodged with the Registrar under this Act; 16. （d)a copy of the trust deed and any amendment 17. thereto; 18. (e) a list of trust property; 19. (f) a register of charges and security rights created under the Movable Property Security Rights Act; and 20. （g） any other documents that the Registrar may,from 21. time to time,require to be kept. - (2) A trust shall keep the documents in subsection (1) 23. for a minimum period of sevenyears. - (3) A trust and each trustee that fails to comply with this section commits anoffence and is liableon conviction- Register and recordstobekept by the trust. - （a) if the offender is a natural person,to a fine not - exceeding five hundred thousand shillings;and - （b) if the offender is a body corporate, to a fine not exceeding two million shillings. - 64.(l) Every trust shall keep such accounting and other records as may be prescribed in the Regulations to- - (a) show and explain the accounting transactions; - (b) disclose with reasonable accuracy the financial position of the trust; - （c) enable income and expenditure account and a balance sheet to be prepared,from time to time, that gives a true and fair view of the state of affairs - of the trust;and - (d) comply with the prescribed financial accounting standards. - (2) A trust shall retain its accounting records for not - less than seven years after completion of the matters to which they relate. - （3) A trust shall keep its accounting records in a manner that can be open to inspection as provided for under this Act. - （4) If a trust fails to comply with this section, the - trustee commits an offence and is liable upon conviction- - a)if the offender is a natural person,to a fine not exceeding one hundred thousand shillings;and - （b) if the offender is a body corporate,to a fine not exceeding five hundred thousand shillings. ## PARTIX-BENEFICIALOWNERS OFA TRUST - 65.(1) Every trust shall compile and keep a register of - its beneficial owners. - (2) A trust shall enter in the register of beneficial - owners information relating to the beneficial owners as prescribed in the Regulations. 66. (1) A trust shall lodge with the Registrar a copy of the register of beneficial owners referred to under - subsection (1). Accounting records. Register of beneficial owners. Lodgement of the register. - (2) All trusts incorporated before the commencement of this Act shall lodge with the Registrar a copy of the register of beneficial owners within twenty-four months of coming into force of this Act. - (3) The Registrar may,on the application of the trustee or for any other reason the Registrar deems fit,extend the period referred to in subsection (2). - (4) A trustee who fails to comply with the provisions of this section shall be liable to an administrative penalty of- 4. （a) ten thousand shillings,if the trustee in default is a natural person;and 5. (b) twenty thousand shillings,if the trustee in default is a body corporate. 6. 67.(l) A trust shall update any changes to the 7. beneficial ownership of the trust and shall lodge with the Registrar a copy of the changes to its register of beneficial owners within twenty-one days after making the change. - (2) A trustee who fails to comply with provisions of thissection shall be liable to an administrative penalty of 9. (a) ten thousand shillings if the trustee in default is a 10. natural person;and 11. (b) twenty thousand shillings if the trustee in default is a body corporate. 12. 68.Every trust shall keep records of its beneficial owner's information for atleast seven years from the date which a person ceases tobe a beneficial owner. 13. 69.(l) The Registrar shall give a directive to a trust 14. that is in breach of this Part,specifying- 15. (a) the statutory requirement of which the trustee is in 16. breach; 17. (b) the action that the trustee is required to take; 18. （c) the timelines within which the trust should 19. comply;and 20. （d) the consequence for failure to comply with the 21. directive by the Registrar. Changes to the beneficial ownership. Recordsof beneficial owners. Breach of this Part. - (2) The Registrar shall,where the trustees fail to comply with the directive issued under subsection (1),issue a notice,addressed to the trustees,that upon the expiry of thirty days,the trustees may be disqualified. - (3) Where the trustees fail to comply within the time 3. prescribed in subsection (2),the Registrar shall publish in the Gazette an intention to have the trustees disqualified from acting as trustees of the trust. - (4) At the end of the period specified in the gazette notice under subsection (3),the Registrar may,unless cause to the contrary is shown by the trustees,disqualify the trustees for a maximum period of three years and Gazette the names of the disqualified trustees. - (5) Any person dissatisfied with the decision of the Registrar to disqualify a trustee under subsection (4) may appeal to court for such orders as the court may deem expedient. ## PARTX-POWERS OF THE COURT IN RELATION TO VESTING ORDERS - 70.(1) A court may issue a vesting order in relation to property of a trustwhere- - (a) the trust does not have any person capable of acting in relation to the trust property; or - (b) the court appoints a trustee in relation to a trust - where the trust did not have any trustee;or - (c) the court deems fit to issue such orders. - (2) A vesting order under subsection (l) shall have the same effect as if the persons who would have had the - document required to effect the transfer of the property. - (3) The court may,in any case where it has powers to - issue vesting orders,direct or appoint a person to execute any document required for the transfer or conveyance of the property of a trust. - 71.Where a minor is beneficially entitled to any property,the court may,with a view to the application of the capital or income thereof for the maintenance, education or benefit of the infant,make an order appointing a person to convey or transfer the property. Vestingorders. Power to appoint person to convey ## PART XI-PROVISIONSRELATING TO THE CHANGE OF NAME,FILING OFANNUAL ## RETURNSAND APPOINTMIENT OFTRUSTAGENT - 72.(l) A trust may, on application to the Registrar, change its name as may be prescribed in the Regulations. - (2) On receiving an application of change of the name of the trust and on being satisfied that the new name complies with the requirements of this Act,the Registrar shall enter the new name on the register in place of the formername. - (3) Upon registering the new name,the Registrar shall issue a certificate of change ofname to the trust. - (4) A change of a trust's name shall have effect from the date on which the certificate of change of name is - issued. - (5) The change of name shall not affect any rights or - obligations of the trust or invalidate any legal proceedings by or against it. - (6) Any legal proceedings that might have been continued or commenced against it by its former name may be continued or commenced against it by its newname. - 73.(1) The Registrar may direct a trust to change its name if it has been registered or incorporated by a name that is the same as or,in the opinion of the Registrar,is- - (a) too similar to a name appearing at the time of the registration or incorporation in the Registrar's index of names; - (b) too similar to a name that has been reserved;or - （c) contravenes the provisions of this Act or the Regulations made hereunder. - (2) In giving a direction under subsection (l),the Registrar shall require the trust to comply with the direction - within the time specified in the directive. - (3) If the trust fails to comply with a direction given to it under this section, the trust and each trustee who is in default, commits an offence and shall be liable on - conviction- Change ofname ofa trust. Power to direct change of name by the Registrar. - （a) if the offender is a natural person,to a fine not exceeding five hundred thousand shillings;and - （b) if the offender is a body corporate, to a fine not - exceeding two million shillings. - (4) Any person with a legitimate interest may,in - writing,apply to the Registrar to give a direction to a trust, to change its name on any of the grounds specified under subsection (1). - 74.(l) A trust dissatisfied with the decision by the - Registrar to issue a directive may apply to court for remedy. - (2) In considering an application under subsection (1), - the Court may take into consideration the effect of sustaining similar names in the index of registered names held by the Registrar. - 75.(1) A trust shall file its annual returns with the - Registrar within thirty days of the anniversary of its registration or incorporation under this Act. - (2) The annual returns referred to under subsection (1) shall contain information prescribed in the Regulations. - (3) If a trust fails to comply with the requirements of subsection (1),the trust or any trustee of the trust in default is liable to pay to the Registrar an administrative penalty of five hundred shillings for each year of default. - 76.(l) A trust agent is a person who has been - including- - (a) trust formation and set up including offering advisory services,preparing - registrationor incorporation documents and ensuring the trust complies with the relevant laws and regulations; - (b) providing a registered office address for a family - trust;or - (c) lodging statutory documents on behalf of the trust. - (2)A trustee shall notify the Registrar of any - appointment or termination made of a trust agent appointed for the purposes of lodging statutory documents on behalf Trust may apply to courtfororder to quash the direction under s.73. Annual returns. Trust agent. of a trust or appointed to provide address or keeprecords on behalf of the trust within twenty-one days of appointment. - (3) A trust agent appointed for purposes of subsection (2) shall be an advocate of the High Court of Kenya,a Certified Secretary or a Certified Accountant: Provided thatnothing in this section shall be construed as permitting an unqualified person to draw documents required to be drawn by an advocate under the Advocates Act. - (4) A trust agent shall keep records of all transactions with the trust for a period of not less than seven years from the time they cease acting as a trust agent of the trust. 2. authority,disclose such information within fourteen days of such a request. ## PART XII-REGISTRAR AND REGISTER OF ## TRUSTS - 77.(1) There shall be a Registrar of Trusts which shall be an office within the Business Registration Service. - (2) The Registrar of Trusts shall be responsible for the setting up of the registry and maintenance of the Register of - Trusts as required under this or any other law. - (3) There shall be a Deputy Registrar of Trusts and such other Assistant Registrars of Trusts as may be necessary for the proper performance of the functions of the Office. - (4) The Registrar may authorise the Deputy Registrar or an Assistant Registrar to perform and exercise such functions and powers as the Registrar may from time to time specify. - (5) Functions and powers of the Registrar performed - or exercised in accordance with an authority conferred under subsection(4) shall be deemed to have been performed or exercised by the Registrar. - 78.(1) The Registrar shall keep a Register of trusts. - (2) The Register shall contain Designation ofthe Registrar and other officers. The Register and functions of the Registrar. - (a) the information relating to trusts that is contained in documents lodged or filed with,or delivered to, - the Registrar under this or any other Act;and - (b) certificates of registration and incorporation of trusts issued by the Registrar. - (3) The Registrar shall keep records of dissolved trusts for at least sevenyears. - (4)The Registrar shall record and keep the information contained in documents lodged with the Registrar in such form (including electronic form) as may be prescribed in the Regulations. - (5) The Registrar shall ensure that all records kept by the Registrar are in such form as will enable all the information contained in the records to bereadilyretrieved for inspection and copied. - （6) If the records are kept in electronic form, the Registrar shall ensure that they are capable of being reproduced in hard copy form. - (7) The Registrar shall perform such other functions conferred on the Registrar by this Act or any other law. - (8)The Registrar may disclose the information - maintained in subsection (2) - （a) to the trustees of a trust,enforcer,beneficiary or settlor where the settlor has reserved powers under the trust deed; - (b) to competent authorities upon written request or - any other means as the Registrar may specify; - (c) to self-regulatory bodies regulating or supervising for money laundering,terrorism financing and proliferation of weapons of mass destruction; - （d) to any person or institution designated as a reporting entity under the Proceeds of Crime and - Anti-Money Laundering Act; - (e) to any other person permitted by any written law in Kenya;or - （f) where the Court orders such information to be - disclosed. - 79.(l) The Registrar may issue a directive to an existing trust to provide information that is required to be kept by the Registrar under this Act and is not available in relation to the trust. - (2) The directive requiring an existing trust to provide information shall stipulate the timelines within which to complywith the notice and shall indicate all the information required to be furnished with the Registrar. - (3) The Registrar shall, where the trustees fail to comply with the directive issued under subsection (2),issue a notice,addressed to the trustees that upon the expiry of thirty days,the trustees may be gazettedfor disqualification. - (4) Where the trustees fail to comply within the time prescribed in subsection (3),the Registrar shall publish in the Gazette an intention to have the trustees of the trust disqualified from acting as trustees of the trust. - (5) At the end of the period specified in the notice under subsection (4),the Registrar may,unless cause to the contrary is previously shown by the trustees,disqualify the trusteesfor a maximum period of threeyears and Gazette the names of the disqualified trustees. - 80.The Registrar may require any document to be lodged under thisAct to be lodged electronically subject to such conditions,if any,as the Registrar may impose from time to time. - 81.The Registrar shall have an official seal for the authenticationof documents in connectionwith the performance of the Registrar's functions. - 82.(l) A trustee may apply to the Registrar for rectification of the register,in respect of which an entry in a register- - (a) has been omitted; - (b) is incorrect;or - (c) has been included in error. - (2) Upon receipt of the application under subsection (1),the Registrar may require the applicant to produce such documents or furnish such information as the Registrar Power to issue directives by the Registrar. Electronic lodgment of documentswith Registrar. Registrar's official seal. Rectification. deems necessary in order to determine whether the register should be rectified. - (3)The Registrar shall give notice of that application to such other person as Registrar may identify being a person who appears to the Registrar to be concerned or to - have an interest in the trust. - (4)Upon expiry of the period prescribed under the - notice in subsection (3), the Registrar may proceed to rectify the register where no objection is received from persons notified in subsection (3). - (5)The Registrar may,without an application being made under subsection (1),rectify the register where,in the view of the Registrar an entry- - (a) has been omitted; - (b) is incorrect;or - (c) has been included in error: Provided that the Registrar shall consider fair administrative action before rectifying the register. - (6)A person aggrieved by the decision of the Registrar under this section may appeal to the High Court for determination. - (7) Nothing in this section shall be construed as permitting therectification,amendment,or alteration of the - substantive content of the trust deed. - 83.(l) There shall be prescribed fees payable to the Registrar in respect of- - (a) the performance of a function imposed on the Registrar by this or any other Act;or - (b) the provision by the Registrar of services or facilities for a purpose connected with the performance of any of the Registrar's functions under this Act; - (c) the receipt of documents lodged with the Registrar for registration or incorporation under this or any - other Act;and Feespayable to the Registrar. - (d) the provision of copies of documents or parts of - documents formingpart of the Register. - (2) In respect of the performance of functions,or the - provision of services or facilities,by the Registrar- - （a) for which fees are not provided for by the - Regulations;or - (b) in circumstances other than those for which fees - are provided for by Regulations, the Registrar may determine from time-to-time what fees,if any,are chargeable. - (3) The Registrar shall be responsible for ensuring that- 2. (a) fees received by the Registrar; 3. (b) such moneys as may accrue to, or vest in the Registry in the course of the exercise of its powers or the performance ofit functions under this Act or any other written law; 4. (c) such monies may be payable to the Registry pursuant to this Act or any other written law; 5. (d) such gifts as may be donated to the to the Registry 6. pursuant to this Act or any other written law; 7. (e) such money as may be appropriated by Parliament for the Registry pursuant to this Act or any other 8. written law;and 9. (f) money from any other source granted,donated or 10. lent to the Registry, are managed or utilised for the purposes of this Act in accordance with the Public Finance Management Act. ## PART XILI-DISSOLUTION OF A TRUST - 84.(1) On application by the trustee of a trust, the - Registrar may dissolve a trust. - (2) An application for dissolution of a trust is effective only if- - （a) the purpose of the trust has been fulfilled in accordance with the trust deed; Cap.412A. Dissolution of a trust. - (b) the trustee demonstrates that it is impossible to achieve the purpose of the trust in accordance with - the terms of the trust deed;or - (c) a court has ordered that the trust be dissolved. - (3)An application under this section shall be - (a) in the prescribed form; - (b) made on behalf of the trust by- - (i) the trustees accompanied by a resolution, outlining the reasons and confirming that all conditions for dissolution as set out in the trust deed have been met;or - （ii) the settlor, where such powers have been - reserved under the trust deed;or - （c)made in compliance with a court order;and - （d) accompanied by any other information as may be - prescribed in the Regulations. - (4)The Registrar may not dissolve a trust under this section until after three months from the date of the publication of a notice in the Gazette- - (a) stating that the Registrar may exercise the power under this section in relation to the trust; and - (b) inviting any person to show cause why the trust should not be dissolved. - (5) Subject to subsection (4),the Registrar shall publish in the Gazette,a notice that the trust has been - dissolved. - （6) On publication of the notice under subsection (5), the trust shall be deemed dissolved. - (7) Notwithstanding the provisions of subsection (6)- - (a) any liability incurred by a trustee of the trust shall continue to accrue to that trustee and may be - enforced as if the trust had not been dissolved;and - (b) nothing in this section shall affect the power of the - Court to liquidate a trust which is dissolved under this section. 85. (l) An applicant may,at any time before a trust is 2. dissolved under section 84 of this Act,withdraw an application for dissolution. 3. (2)Upon receipt of the notice of withdrawal under subsection (l),the Registrar shall- 4. (a) notify the trust that the application to dissolve the 5. trust has been withdrawn;and 6. (b) where a notice of intention to dissolve the trust had indicating that the application to dissolve has been 7. been published,publish a notice in the Gazette withdrawn. 8. 86.(1) The Registrar may restore the name of a trust 9. to the Register if satisfied that the dissolution of the trust is as a result of a mistake of the Registrar. - (2) For purposes of subsection (1),"a mistake of the Registrarexcludes a mistake that is made on the basis of wrong,false or misleading information given by the applicant in connection with the application for dissolution of the name of the trust from the Register. - (3) The Registrar shall act within a reasonable time after identification of a mistake to have the name of the trust restored in the register. 12. （4) The Registrar may restore the name of a trust to the Register by publishing in the Gazette,a notice declaring the restoration and which shall take effect on the date of publication of the notice. 13. 87.(1) An application may be made to the Court to restore the name of a trust thathasbeen dissolved. - (2) An application under subsection (l) may be made by- 15. (a) the trustee; 16. (b) beneficiaries of the trust;or 17. (c) any person who would appear to the Court to have 18. a legitimate interest in the trust. 19. 88.(1) Where the name of a trust is restored to the Register under this Act,the trust shall be deemed to be in existence as if its name had not been dissolved and shall maintain the same legal status as before the dissolution. Withdrawal of an application to dissolve. Restoration where dissolutionwasby mistake Restoration by Court. Effectof restoration. - (2) The trust shall not be liable for any liability arising 2. from an obligation to file any documentwith the Registrar during the time within which it was dissolved. 89. (1) Upon dissolution of a trust, the property held by the trust or the trustees shall be dealt with in accordance with the provisions of the trust deed or applicable law. - (2) Where the trust deed does not have provisions in relation to the property in the event of dissolution, the Court shall make a determination on how theproperty shall 5. be dealt with. ## PART XIV -MISCELLANEOUS PROVISIONS - 90.(1) Any filing required to be made with the - Registrar under this Act may be filed electronically. - (2) Any record required to be kept by the Registrar or any other person under this Act may be kept in electronic form. - (3) The Registrar is under no obligation to keep the originals of documents lodged in electronic form so long as the information contained in them has been recorded in the Register. - (4) The Registrar may not certify copies of records - provided in electronic form as true copies unless the applicant expressly requests that certification. - (5) Regulations may prescribe the mode of electronic lodgement or manner in which electronic records may be kept. 91. Any person processing personal data under this Act shall comply with the Data Protection Act. - 92.Aperson who- - (a) lodges or causes to be lodged with the Registrar, a - document containing information;or - (b)makes a statement to the Registrar for any purpose - that the person knows,or has reason to suspect, that is false or misleading in a material respect commits an offence and on conviction is liable to a fine not exceeding onemillion shillings or imprisonmentfor a term not exceeding twoyears,or to both. Dealings with propertyupon dissolution. Electronic filing and keeping of records. Compliance to the Data Protection Act Cap.411C. Lodging of false ormisleading documents. - 93.A person who is convicted of an offence,under this Act, for which no penalty is specifically provided for, shall be liable to a fine not exceeding one million shillings. - 94.(1) Any dispute in relation to a trust shall be determined in accordance with the dispute resolution - mechanisms set out in the trust deed. - (2) Where the trust deed does not prescribe a method of dispute resolution,the dispute shall be determined by the High Court. ## PARTXV-PROVISIONS ON DELEGATED ## POWERS - 95.(l) The Attorney General may make Regulations, - not inconsistent with the provisions of this Act,containing provisions as may be necessary to give effect to the provisions of this Act. - (2) Without prejudice to the generality of subsection (1),the Regulations made under this Act may prescribe- - （a) manner and form of lodgment of any document - required to lodged under this Act; - (b) fees for services offered under this Act; - (c) requirements to be met by corporate trustees; - (d) disqualification of trustees; - （e) manner and form of documents issued by the Registrar; - （f)manner of access to information required to be - shared under this Act; - (g)procedure and requirements lodgments; - forelectronic - (h) beneficial ownership information; - (i) licensing of corporate trustees;and - (j)any other information required to be prescribed by - the Registrar under this Act. ## PARTXVI-REPEAL,TRANSITIONALAND ## SAVINGS PROVISIONS - 96.Section 4 of the Registration of Documents Act is amended in subsection (l) by inserting the following - paragraph immediately after paragraph(vii)- General penalty Dispute resolution. Regulations. Consequential amendment to Cap.285. - (vii) a trust deed or deed of appointment of trustees registered undertheTrust Administration Act. 97. (1) Upon the coming into effect of this Act, the Repeal. following Acts are repealed- - (a) the Trustees (Perpetual Succession) Act;and Cap.164. - (b) the Trustees Act. Cap.167. - (2) Despite the repeal of the laws in subsection (1)- - (a) a trust,which has been duly incorporated under the Trustees (Perpetual Succession) Act (now repealed) and is in existence at the commencement of this Act or created as a result of registration of the deed under the Registration of Documents Act shall be deemed to be a Trust under this Act; - (b) all existing trusts shall berequired to comply with the requirements of this Act within twenty-four months of coming into effect of this Act or any such time as the Registrar may direct; - （c) all rights,powers,liabilities and duties,whether arising under any written law or otherwise,which immediately before coming into operation of this Act were vested in,imposed on or enforceable by or against the existing trust,shall be transferred to, vested in,imposed on or be enforceable by or - against the trust under this Act; - (d) the settlor, trustee, beneficiary or enforcer of any existing trustshall onthe date of the commencement of this Act be deemed to be the settlor,trustee,beneficiary or enforcer under this - Act. - (3) The Registrar may issue an existing trust with a new certificate of incorporation for trusts incorporated before the coming into effect of this Act and recall all certificates issues under the repealed Trustees (Perpetual Succession) Act. Cap.285. ## MEMORANDUM OF OBJECTS AND REASONS This Bill seeks toprovide a comprehensive legislative framework for strengthening the law relating to the regulation and management of trusts and providing actions for the breaches of compliance with transparency requirements for legal persons and legal arrangements. The structure of the Bill is as follows: - PART I(Clauses 1-3) of the Bill provides for preliminary matters including,the short title and interpretation of technical terms used in the - Bill and the intended application of the Act. - Part I (Clauses 4 -21) of the Bill deals with the creation and formation of a trust.In this regard, Clause 4 provides for when a trust is created and imposes a requirement that it must be in writing and Clause 6 providesfor the grounds for the invalidation of a trust. The Part further specifies the types of trust which include charitable trusts,non-charitable purpose trust and family trusts; and specifies the parties to a trust who include the settlor,beneficiary,trustee and an enforcer. - Part Ill (Clauses 22-27)of the Bill deals with the registration of a trust. It spells out the requirements for registration,the contents of the trust - deed and the effect of registration of the trust. - PART IV (Clauses 28-33) of the Bill deals with the incorporation of a trust. In this regard, Clause 28 requires the reservation of the name of the incorporated trust and spells out the requirements for incorporation and the effect ofregistration of the trust - PART V (Clauses 34-35) of the Bill contains provisions relating to - the property of a trust. - PART VI (Clauses 36-42) of the Bill contains provisions relating - trustee.It inter alia provides for the qualifications and disqualification to act as a trustee,resignation,removal and death of a trustee and the effects of change of a trustee. - PART VII (Clauses 43-59) of the Bill deals with the duties and general powers of a trustee in relation to their trusteeship, the trust property and the beneficiaries. PART VIlI (Clauses 60-64) of the Bill provides for remuneration, indemnity and liability of a trustee. Clause 60allowsfor theremuneration of a trustee in in respect of the execution of his or her official duties while Clauses 61 and 62 of the Bill respectively provide circumstances where a trustee may be held personally liable for anyviolation and the limitation of their indemnity. PART IX(Clauses 65-69) of the Bill deals with beneficial owners of a trust and therefore obligates the trustee to maintain a register of beneficial owners containing such information as shall be prescribed. PART X (Clauses 70-71) of the Bill contains provisions on the powers of the Court in relation to vesting orders where,inter alia, the trust does not have any person capable of acting in relation to the trust property and other orders to uphold the interests of the trustee and beneficiaries. PART XI (Clauses 72-76) of the Bill contains provisions relating to the change of name,filing of annual returns and appointment of trust agent. PART XII (Clauses 77-83) of the Bill provides for the designation of the Registrar of Trusts. The Registrar shall be responsible for the setting up of the registry and maintaining the Register of Trusts. Clause 79 of Bill further provides for the powers the Registrar to issue directives and impose sanctions for non-compliance with such directives. Additionally,Clause 83 of Bill provides for the fees payable to the Registrar in the performance of the functions under Act. PART XIII (Clauses 84-89) of the Bill deals with the dissolution of a trust. It provides for the grounds and the procedure for the dissolution of a trust and allows for the withdrawal of an application for dissolution. The Part further contains provisions on restoration of a trust and the effect ofrestoration. PART XIV (Clauses 90-94) of the Bill contains miscellaneous provisions which includes provisions on electronic filing and keeping of records; compliance to the Data Protection Act,lodging of false or misleading documents,and the power to make regulations for purposes of the Act. PART xV (Clause 95) of the Bill contains provisions on delegated powers. PART XVI (Clauses 96-97) of the Bill deals with repeals,savings and transitional provisions. Statement on the delegation of legislative powers and limitation of fundamental rights and freedoms ThisBill delegates legislativepower to theAttorney General tomake regulations for the carrying into effect the provisions of the Bill.The Bill does not limit any fundamental rights or freedoms. ## Statement as to whether the Bill is a money Bill within the meaning of Article 114 of the Constitution The enactment of this Bill may occasion additional expenditure of public funds. ## Statement as to whether the Bill concerns counties This Bill does not concern counties in terms of Article 1i0 (1) (a) of the Constitution. Dated on the 17th May,2026. KIMANIICHUNG'WAH, Leader of the Majority Party.