By

Selestine Were | Financial Advisor & Founder, Tamara’s Financial Planning and Consultancy

“A trust fund is not just about preserving wealth—it’s about preserving intention, identity, and impact across generations.”

Tamara’s Financial Planning and Consultancy

Why Now Is the Time to Talk About Trust Funds

Kenya’s economic landscape is changing fast. More people are acquiring land, properties, running businesses, investing in unit trusts, and growing their savings and pension schemes. Yet, with all this growth, one pressing issue remains—how do we protect our hard-earned assets and ensure they serve our loved ones even after we’re gone? Sadly, the statistics are sobering.

According to the Kenya Law Reform Commission and Judiciary reports, succession disputes have become one of the leading causes of family breakups. It’s estimated that over 65% of wealth left behind by Kenyan parents never reaches the second generation intact, and only 15% survives to the third. These statistics are not just numbers—they are cautionary tales.

So how do you avoid this fate?

The answer lies in strategic financial planning, and one of the most powerful tools available is the trust fund.

What is a Trust Fund?

A trust fund is a legally binding arrangement where a person (known as the grantor or settlor) transfers ownership of specific assets to a trustee, who then manages those assets on behalf of a named beneficiary. The trustee is legally obligated to act according to the instructions written in the trust deed, which outlines how, when, and for what purpose the assets are to be distributed.

These assets can be anything of value: land, homes, school fees funds, shares, investment portfolios, insurance payouts, royalties, intellectual property, or even entire businesses.

What makes a trust fund special is that it gives you control beyond your lifetime. You can specify whether a child should receive a monthly education stipend, whether land should be sold after a certain age, or that a grandchild should receive their inheritance after graduation.

A will may state what should happen to your assets—but a trust fund ensures it happens with legal force and professional oversight.

Trust Fund vs. Will: Clearing the Confusion

One of the biggest misconceptions in Kenya is that a will is enough to protect your family’s future. While a will is a good starting point, it is not always the most effective option on its own.

A will comes into effect only upon your death, and it must go through the probate process—a court-supervised legal procedure that can take months or even years and is open to public scrutiny. During this time, assets are often frozen, family members may contest the contents, and many estates are drained by legal fees.

On the other hand, a trust fund can be activated while you’re still alive and continues to function seamlessly after your death—without probate, delays, or family battles. Trust funds are private, flexible, and offer ongoing control.

Let’s paint a practical picture: If a single mother in Nairobi has three children and owns a plot of land, she may write a will giving that land to the children. However, when she passes, the will goes to court, and if relatives contest it or the process drags on, her children may go for years without benefiting. In contrast, with a trust fund, she can appoint a trustee to manage the land, sell it at the right time, and deposit school fees into each child’s account annually until they turn 25.

“A will is a wish. A trust is a command backed by law, structure, and accountability.” Selestine Were

Who Needs a Trust Fund in Kenya?

The myth that trust funds are for billionaires couldn’t be more wrong. The modern Kenyan middle class and professionals increasingly need trust funds more than ever. Whether you’re a parent, guardian, investor, professional, or business owner, if you have responsibilities and assets, a trust fund is for you.

Imagine a young couple in Mombasa running a thriving hardware business. They’ve acquired two pieces of land and have three children in school. What happens to the business or the land if both parents were to pass away in an accident? A trust fund ensures that the business is either professionally managed, sold, or passed down as intended, and the proceeds are used wisely over time—not squandered or fought over.

Similarly, if you are a diaspora Kenyan, sending money back home to invest in property or to support your elderly parents, setting up a trust protects your investments from misuse, legal complications, or family interference. Your money is managed according to your plan—even in your absence.

Why Is It So Important to Set Up a Trust Fund?

The importance of a trust fund lies in what it prevents as much as in what it protects. It prevents wealth from disappearing through court battles, mismanagement, or emotional decision-making during family loss. It protects children, spouses, dependents with disabilities, and even charitable causes you care about.

A trust fund empowers you to:

• Maintain control even when absent. You decide how assets are used—down to the last shilling.
• Ensure minors are supported responsibly. You can schedule payments for school fees, health care, or life milestones.
• Preserve your legacy. Your business, home, or name carries forward with purpose.
• Avoid legal battles. Trusts reduce or eliminate succession cases and costly family disputes.
• Avoid probate. Your beneficiaries access their inheritance without years of legal delay.
• Protect your assets from creditors or ex-spouses. A properly structured trust creates a financial shield.
• It also offers peace of mind. You can live knowing that if the unexpected happens, your people, your possessions, and your principles are in place.

How Does a Trust Fund Work in Kenya?

Setting up a trust fund in Kenya involves several stages—and that’s where professional guidance becomes key.

First, as your trusted financial advisor at Tamara’s Financial Planning and Consultancy, I sit with you to understand your unique family, business, and financial situation. We discuss your long-term goals and concerns, such as school fees for your children, protection for a child with special needs, or succession planning for your land and property.

Then, we help you define the terms of the trust. This includes naming the beneficiaries, deciding how the assets will be distributed, and selecting the trustee—either an individual, a trusted family member, or a licensed institution.

The next step is drafting a legally binding trust deed with the help of a lawyer. This document contains your detailed instructions. After that, you transfer your assets into the trust—be it cash, real estate, insurance policies, or shares.

From there, the trustee manages the assets as per your instructions. They ensure school fees are paid, maintenance costs are handled, or business revenue is distributed to beneficiaries responsibly.

The best part? You remain in control of how this plays out. You can create revocable trusts, which you can modify or cancel during your lifetime, or irrevocable trusts, which are fixed and offer stronger legal and tax protections.

Real-Life Applications of Trust Funds in Kenya

Trust funds are now being used creatively and meaningfully in Kenyan society.

One Nairobi widow set up an education trust fund for her grandchildren, ensuring they will receive quality education up to university—even though their father passed and she is aging.

A real estate investor from Kisumu created a trust to manage rental income, with proceeds supporting his church and a foundation for orphaned children.

A diaspora family in Qatar placed their family home in a trust to prevent inheritance fights when they eventually relocate or pass on.

Even NGOs are using trust structures to manage donor funds, ensuring continuity even if board members change or external grants are delayed.

At Tamara’s, we have helped clients across counties—from teachers and healthcare workers to CEOs—design trust funds that speak to their values and protect their visions.

Tamara’s Financial Planning and Consultancy – Your Partner in Setting Up a Trust Fund

 Creating a trust fund can feel overwhelming, especially if you’re not familiar with legal or financial terms. But that’s why we exist.

At Tamara’s Financial Planning and Consultancy, our work is more than paperwork. We walk with you to craft a meaningful, well-structured, and compliant trust fund that reflects your heart, your values, and your dreams. Our approach is relational, not transactional.

We take time to educate you, assess your asset portfolio, link you with vetted legal experts, and tailor the trust structure to your life situation—whether you are a single parent, married couple, entrepreneur, retiree, or community leader.

“We don’t just build financial plans—we build futures. At Tamara’s, legacy is not an afterthought. It’s the heartbeat of our work.”

Selestine Were

A Future That Outlives You

We live in uncertain times. But one thing you can make certain is the protection of what you’ve worked so hard to build.

If you have a child depending on you, a spouse who shares your dreams, parents you care for, or a community that benefits from your giving, a trust fund allows your impact to live on—even when you no longer can.

Don’t let your wealth disappear into court battles, confusion, or conflict. Don’t leave your children to guess your intentions. Be deliberate. Be clear. Be prepared.

Let Tamara’s Financial Planning and Consultancy help you create a trust fund that gives you peace today and gives your family power tomorrow.

Contact Us Today

Tamara’s Financial Planning and Consultancy

WhatsApp Only: +254 777 675 977

Email: info@tamaras.co.ke

Website: www.tamaras.co.ke

Let’s write your legacy with wisdom, compassion, and clarity. Because your future deserves structure—and your loved ones deserve security.