Charitable Trust | Setting up a trust in kenya

Register a Charitable Trust in Kenya

A Charitable trust holds and manages assets for the benefit of others. The Trustees Perpetual Succession Act Cap (“Trustees Act”) allows the establishment of trusts only for religious, educational, literary, scientific, social, athletic, or charitable purposes (Trustees Act Chapter 164, Section 3(1)). Forming a legal personality through trust structures can also affect charitable trust purposes.

A charitable trust foundation under Kenyan law is established as either a company limited guarantee or a corporate body.

In order to give the trust its own certificate of incorporation and enable it make arrangements under seal in much the same way as a limited company, the trust is thereafter registered under the Trustees (Perpetual Succession) Act whereupon A Certificate of Registration for the trust is granted. The trust can sue and be sued.

In its own name (as opposed to those of the trustees), registering a trust is especially useful when the trust wants to hold interest in movable and immovable property (i.e., land) in its name rather than in the individual trustees’ names. Furthermore, by registering an organization as a trust, it may be possible to apply for charitable status.

An entity obtains eligibility for charitable trust status after complying with the requirements of the Kenya Revenue Authority.

Requirements for registration of charitable trust.

1. Trust Deed.
2. Objectives of the Trust.
3. Names of the Trustees in Full.
4. Postal addresses of the Trustees.
5. Proposed Physical address of the Trust. Address includes road, plot number, town, and county.
6. Copy of ID / Passport of the Trustees.
7. Passport photos of the Trustee.
8. Copy of PIN certificate of the Trustees

Setting up a Trust in Kenya

• Preparation of trust deed

Setting up a trust in kenya involves the preparation of trust deed. It contains the name of the trust, the objectives of the trust, the names in full and addresses of the trustees including powers of the trustees to change and appoint other trustees.

• Stamp duty

The trustees duly sign the trust document and submit it for stamp duty.

• Registration under the Registry of Documents Act.

• Incorporation under the Perpetual Successions Act.

After registering under the Registration of Documents Act, the trustees lodge a certified copy of the trust deed and a petition for incorporation with the Ministry of Lands for the incorporation of the trust.

Register