AJS Advocates FAQs

General Information

1. Who are AJS Advocates
AJS Advocates is an elite law firm located in Nairobi, Kenya, specializing in various legal fields. Our team comprises highly qualified lawyers dedicated to delivering top-notch legal representation with integrity, competence, justice, and accountability.
2. Where is AJS Advocates located?
We are located at Mariana Business Center, Banana – Raini Road off Ruaka town, opposite Leadway Petrol Station on First Floor Suite Number 8.
3. What sets AJS Advocates apart from other law firms in Kenya?
AJS Advocates is recognized for delivering timely results, progressive legal solutions, and unmatched client satisfaction. Our client-centric approach and deep understanding of legal needs make us the preferred law firm for Kenyan investors, including those in the diaspora.
4. How many years of experience does AJS Advocates have?
We have over 7 years of experience providing high-quality legal services to clients.
5. What legal services does AJS Advocates provide?
We specialize in several practice areas, including:
  • Criminal and Civil Litigation
  • Immigration Law
  • Family Law
  • ICT, IP, and Data Privacy Law
  • Corporate and Commercial Law
  • Dispute Resolution
  • Debt Recovery
  • Tax Law
  • Real Estate and Conveyancing
  • ESG and Regulatory Compliance
6. Do you handle international legal matters?
Yes, we cater to Kenyan investors in the diaspora and offer legal services aligned with regional and international standards.
7. Can AJS Advocates assist with property transactions?
Absolutely. We specialize in real estate and conveyancing, handling property sales, leases, tenancy agreements, and other related matters.
8. Does AJS Advocates offer pro bono services?
Yes, we are committed to providing legal aid and pro bono services to individuals and organizations in need.
9. How can I book an appointment with AJS Advocates?
You can book an appointment by calling us at +254 719584941 or emailing us at info@anyanzwajsadvocates.co.ke
10. What are your office hours?
Our office is open:
Monday to Friday: 8:00 AM – 5:00 PM
Saturday: 9:00 AM – 12:00 PM
Closed on Sundays.

Consultations & Procedures

11. Do you provide personalized legal solutions?
Yes, we tailor our services to match our clients’ specific legal needs and ambitions, ensuring pragmatic and straightforward advice.
12. How can I stay updated on legal news from AJS Advocates?
You can visit our blog on our website www.anyanzwajsadvocates.co.ke and our socials on facebook and Instagram @anyanzwajsadvocates where we publish latest news and legal insights.
13. Does AJS Advocates have a blog?
Yes, our blog provides insights on various legal topics, updates, and industry news. Visit our website to explore more.
14. Who are your typical clients?
We work with private and public developers, institutional investors, private equity firms, family offices, PBOs, fintechs, Companies, SACCOs and individual clients.
15. Can I trust AJS Advocates for complex legal cases?
Yes, our team has a proven track record in handling complex legal matters, including dispute resolution, corporate law, and regulatory compliance.
16. Does Anyanzwa J S Advocates charge for preliminary inquiries?
No. The initial introductory call or email that you make seeking legal help is free; and is usually a brief introductory call or email in which you set out the legal issue and then I subsequently give a preliminary assessment and invite you in for a consultation to discuss your issue/case in more detail.
17. What happens during the Initial Consultation?
  • This is the forum for the client to describe in detail the legal problem that they need help with.
  • The advocate is focused on listening and asking questions that are relevant to your particular circumstances in order to advise you on the best way forward.
  • If your matter requires more legal analysis and research, the advocate will advise you on the modalities of preparing a legal opinion.
18. How much time will I get?
The initial consultation runs for 1 hour. If the initial consultation goes beyond 1 hour, in addition to the consultation fee, I charge regular fixed hourly fees.
19. Is there a cancellation fee & How should I prepare?

Is there a cancellation fee? No

Preparation: Try to ensure that you have the relevant documents on hand at the consultation, that you can present to the advocate e.g., your employment contract if discussing an unfair termination or copy of shareholder’s agreement if discussing shareholder rights and liabilities. Feel free to write or type up any questions you may have, so that questions that are important do not slip your mind.

20. What happens after the initial consultation?
The advocate will advise you on the next steps to be taken. You will need to confirm (either at the meeting or after the meeting) that you wish to engage the advocate to handle your legal matter. Once you agree with the advocate on the scope of work and legal fees, the advocate shall prepare an engagement agreement setting out the terms of the legal provision of services to you, the client.

Family Law & Child Maintenance

FAQs on spousal maintenance in Divorce Cases in Kenya

What is spousal maintenance?
This is money awarded to a spouse by the family court in a divorce case alongside orders of divorce that dissolve the marriage. The amount may be payable in instalments or in a lump sum.
What is the law governing orders of spousal maintenance?
Section 77(1) of the Marriage Act, 2014, provides that the court may order maintenance to a spouse or former spouse.
Is it mandatory for the court to grant spousal maintenance if a party asks for it?
The stated Section 77(1) of the Marriage Act, 2014, provides that the court has discretion to grant maintenance, it is not obligatory.
When is the court likely to grant a prayer for spousal maintenance?

Courts have routinely held that spousal maintenance is not automatic and must be based on actual financial need.

The Marriage Act does not specify the criteria for grant of maintenance and courts have developed jurisprudence that the main criteria are for the person seeking maintenance to prove actual need and the court is entirely within its right to exercise its judicial discretion to either award maintenance or not. The specific factors stipulated in section 25(2) of the repealed Matrimonial Causes Act, are instructive and include:

  • The fortune of the spouses,
  • the ability of the spouse
  • the conduct of the parties.

Other relevant factors include the income and liabilities of each party, Current financial needs and responsibilities present and in future and the duration of the marriage.

What is the main document courts rely on to determine a claim for spousal maintenance?
The family courts have stated that a party seeking to rely on the court exercising its discretion to grant them maintenance must provide an affidavit of means to support their claim and failure to do so could be fatal to a claim for maintenance from a party, and the court may reject a claim such as this as well as open up the maintenance issue to a likely appeal e.g. where maintenance is granted without parties filing affidavits of means.
What is the content of the affidavit of means in respect of a maintenance claim?

This affidavit highlights alongside annexed documents the following information:

  • Assets of a spouse
  • Liabilities of a spouse with adequate description and proof by way of supporting affidavits e.g. loan documents, school fees invoices, medical bills, expense receipts etc.
  • Income of the parties both from employment and business sources

Note that each party ought to provide their affidavit of means to prove or disprove the specified claim for maintenance and it is prudent to provide information rooted in evidence as it can be prejudicial to your claim (or defence if you are opposing the claim for spousal maintenance) if your affidavit of means does not stand up to cross examination and court scrutiny.

What does the Constitution say on spousal maintenance?
Article 45(3) of the Constitution provides that parties to a marriage have equal rights at the time of marriage and after; and courts have determined that in respect of spousal maintenance, this also means that neither the wife nor husband has a superior right to maintenance merely by reason of gender e.g. in the days of old it was more common for wives to seek to rely on their husbands and it was easier to assert alimony as a right rooted in a patriarchal culture that saw women as dependents of men. In light of this equality provision in the Kenya Constitution, the spouse claiming alimony should be prepared to prove their financial need and not merely rely on gender and patriarchal culture as their main basis for their alimony prayer.
What is the amount of spousal maintenance you can receive?
There is no stipulated amount; neither a maximum nor minimum and the main criteria the court will look at is your actual need and the ability of a spouse to pay the maintenance. Definitely, one can persuasively underline that their need is based on a standard of living they have had within that marriage as well as the ability of the other spouse to afford the claimed maintenance amount.
What is the duration of spousal maintenance if your prayer is granted?
There is no stipulated time period for maintenance and courts have the discretion to determine how long this should run for. It may be for some months or years. Rarely will maintenance be granted for an indefinite period. Ordinarily, a new marriage will terminate the requirement to pay someone maintenance if that person receiving the maintenance remarries.
What is Interim Spousal Maintenance versus Final maintenance?
Interim maintenance is awarded for the duration of the divorce case following an interim application for maintenance. Final maintenance is granted as a final order once the divorce case is heard and finally determined, i.e. upon final judgement in the divorce case.
Can parties agree beforehand on the amount of spousal maintenance instead of the court deciding the amount?
Yes, parties can (amicably) draft a settlement agreement on maintenance and ask the court to adopt it as part of the judgement on dissolution of the marriage.
Is spousal maintenance different from child support?
Yes, spousal maintenance is to cater to the financial needs of a spouse and is issued by the divorce court while child support or child maintenance is money awarded by the court towards the maintenance of a child. One should ask for the specific type of maintenance from the appropriate court.

FAQs on Child Support/Child Maintenance in Kenya

What is child custody?
Child custody refers to the legal rights and responsibilities a parent or guardian has towards a child, including decisions about the child’s education, healthcare, and overall welfare. Custody may be legal (decision making power) and physical (where the child lives).
Who may apply for child custody in Kenya?
In Kenya, the following individuals may apply for child custody:
  • Biological parents
  • Legal guardians
  • Relatives or any person who has a legitimate interest in the child’s welfare.
What are the types of child custody recognized in Kenya?
Kenyan law recognizes several types of custody arrangements:
  • Sole custody: One parent is granted full custody, with the other parent possibly having visitation rights, usually called access.
  • Joint custody: Both parents share custody and make decisions together regarding the child’s upbringing and overall welfare.
  • Split custody: Custody is divided between parents if there is more than one child, with each parent having custody of at least one child.
  • Third party custody: Custody granted to a non-parent, such as a grandparent or close relative, if it is deemed to be in the child’s best interest.
How does the court determine child custody in Kenya?
The primary consideration for the court is the best interest of the child, including:
  • The child’s age and gender
  • The physical and emotional needs of the child
  • The child’s preference, if the child is of sufficient age and maturity
  • The stability of each parent’s home environment
  • The ability of each parent to provide for the child’s needs
May a custody order be modified?
Yes, custody orders may be modified if there is a significant change in circumstances that affects the welfare of the child. Either parent may petition the court for a modification.
What is child support?
Child support refers to the financial contribution one parent makes to the other to cover the costs associated with raising the child. This includes expenses for food, clothing, education, healthcare, insurance, and other necessities.
How is child support determined in Kenya?
Child support is determined based on:
  • The needs of the child
  • The income and financial capability of each parent
  • The standard of living the child is accustomed to.
What happens if a parent fails to pay child support?
Failure to pay child support may result in legal consequences, including:
  • Attachment of the parent’s salary
  • Seizure of assets
  • Fines or imprisonment for contempt of court
May child support be adjusted?
Yes, child support payments may be adjusted if there is a significant change in either parent’s financial situation or the needs of the child. The change must be proven by documents for the court to grant an adjustment.
Is mediation available for child custody and support disputes?
Yes, mediation is encouraged in resolving children-related disputes amicably. It allows parents to work together with a neutral third party to reach a mutually beneficial solution regarding custody and support.
What are the legal procedures for obtaining custody or child support orders in Kenya?
The legal procedures typically involve:
  • Filing a petition in the Children’s Court
  • Attending court hearings
  • Presenting evidence and witnesses
  • Following court directives and orders

Sometimes, disputing parents may be able to reach a settlement at the Children’s Office without having to go to Court.

How long does it take to resolve child custody and support cases in Kenya?
The duration varies depending on the complexity of the case, the court’s schedule, and the cooperation of both parties. Simple cases may be resolved in a few months, while more complex cases could take longer.
May nonparents apply for child custody or support?
Yes, nonparents, such as grandparents, aunts, uncles, or any person with a legitimate interest in the child’s welfare, may apply for custody if it is in the best interest of the child. They must, however, demonstrate their interest in having custody of the children as opposed to the parents of the child.
What rights do fathers have in child custody and support cases in Kenya?

Fathers have equal rights to apply for custody and are equally responsible for child support. The court evaluates each parent’s situation without bias towards either parent.

There is, however, a general rule established through decided cases that custody of children of tender age, i.e. below 10 years, should be granted to the mother unless there are exceptional circumstances that place the father on a higher priority over the mother. These exceptional circumstances include a mother’s disgraceful conduct, immoral behaviour, drunken habit, bad company, among others.

Are international child custody and support orders recognized in Kenya?
Kenya may recognize international child custody and support orders under certain conditions, particularly if the country involved is a signatory to relevant international conventions such as the Hague Convention on Child Abduction.

Property & Intellectual Property Law

FAQs on Divorce and Children

Does Divorce affect the rights of children of divorced parents?
Divorce by itself does not diminish the rights of children, however the circumstances of life after divorce can affect children, for instance sometimes divorced parents may withdraw financial support of the children to retaliate against the other parent or divorced parents once they remarry, the new partner may take on a parenting role of the child of the divorcees. Nevertheless, a parent of a child of divorce can go to court to reinforce and protect the rights of their child in the event of divorce.
Can I ask the divorce court for child custody?
No, the divorce court which is usually the magistrate court exercises its jurisdiction in respect of divorce and the special children’s court determines issues of custody and child maintenance with respect to divorced or divorcing parents.
Do divorce proceedings affect child custody proceedings?
These two proceedings take place in different courts (divorce is done in the magistrate’s courts and child custody proceedings are done in children’s courts) and are independent of each other, nevertheless evidence from one proceeding may be used in another and vice versa. Divorce and child custody cases are different types of family law proceedings.
Who gets the child in the event of divorce?
The basic guide applied by courts in Kenya in matters of child custody is that the mother usually gets primary physical custody of children below the age of 10 unless she is shown to be unfit; and the father gets access. Both parents usually share legal custody unless either is shown to be unfit. For children above 10 years, custody and access are usually jointly shared.
What rights do divorcing fathers have?
Fathers have equal rights of custody over children and have equal rights as mothers to sue for custody; while legal custody is likely to be granted equally, the age of the child while determine who will get primary physical custody.
Can a divorced parent relocate with children?
Divorced parents can agree on child custody and residence of the child and decide if they allow the child to relocate with one divorced parent out of Kenya. Note that it is harder in a practical sense to pursue custody orders abroad once a child has left the Kenyan jurisdiction before issues of custody and residence are settled.

Where someone is a legal guardian, there are regulations on guardianship under the Children Act 2022 that require court consent prior to relocating with a child over whom guardianship is established.
Can divorced parents enter an agreement on child custody, access and maintenance?
Yes a parental responsibility agreement is the appropriate document to be drafted, signed and filed in court.
How is custody decided where parents separate or divorce?
Custody can be determined in 2 ways:

The amicable way: Parents agree between themselves on custody, access and maintenance and this is written up in a legal document called a parental responsibility agreement, this is signed by both parents and filed in court and adopted as a court order.

The contested way: Where custody is litigated in the children’s court, where each divorced parent seeks their desired order from the children’s court; i.e. the divorcees sue and/or countersue for custody and child support.

Are children taken into account in dividing matrimonial property?
Yes, children ought to be considered in the division of matrimonial property, for instance children have a right to decent shelter and where matrimonial property consists of a home, the party retaining primary physical custody of minors/young children can assert this as a factor with respect to the issue of splitting an asset such as a matrimonial home. This is also a factor that courts may consider in a matrimonial property cause that is in court after divorce. (A matrimonial property cause is a case on division of matrimonial property between parties who have already divorced.) Thus custody of minors is a relevant factor taken into account in deciding how the matrimonial home is allocated when dividing matrimonial assets.

Matrimonial Property Law in Kenya

Is my spouse entitled to half of my assets/half my house on divorce?
Not necessarily. Kenyan Law provides that separately owned assets remain the assets of the sole owner subject to commingling that may cause your spouse to acquire an interest in your separate property. Thus your spouse may acquire an interest in previously separately owned property and in such a case, your spouse may not necessarily be entitled to half, but to a percentage equivalent to what your spouse contributed to its improvement, which may or may not be 50% of its value. On the other hand, your house may become the matrimonial home after marriage. In such instances the rules under the Matrimonial Property Act come into play.
What happens to property owned before marriage?
Separately owned property remains so unless your spouse improves it in which case they may acquire an interest in said separate property. Spouses can enter a prenuptial agreement to delineate separately owned property from matrimonial property. Thus during a matrimonial property cause, you as the owner of what you deem your separate property often fight to prove that no improvements or commingling has happened to grant your spouse an interest in said separate property.
Do assets I acquire in my name during marriage become matrimonial property?
The Matrimonial Property Act preserves the legal principle of separation of property acquired before or after marriage subject to rules on commingling or improvement by your spouse. Thus simply put, if you keep your separately owned property as truly separate from jointly owned property, then you retain your interest 100% in said assets.
Can business assets be included as matrimonial property?
Yes, it is possible for your spouse to acquire an interest in your business entitling them to a share.
What shall be considered matrimonial assets and non-matrimonial assets?
Matrimonial assets are defined to include the family home and goods therein and assets acquired jointly during the marriage. On the other hand, non-matrimonial assets are those acquired separately by you and your spouse before or during the marriage. It is important to note that your spouse may additionally, acquire a beneficial interest in separately owned property based on contribution e.g. through improving that asset or through commingling.
What do Kenyan Courts consider when dividing assets upon divorce?
Courts consider various factors including:
  • Financial contribution towards acquisition or improvement of assets
  • Non-financial contribution towards acquisition or improvement of assets
  • Welfare of minor children (e.g. impact of order on matrimonial home on rights of children)
  • Customary Law as pertains to customary marriages
  • Livelihood of spouses

Trademark & Industrial Design Process

What is a trademark?
This is a word, logo, number, device or any combination of the foregoing that is used to distinguish goods or services relating to a particular industry that is registered with the Kenya Industrial Property Institute. It is a mark that essentially identifies your brand within a particular industry or business sector.
Where are trademarks filed in Kenya?
Trademarks in Kenya are filed at the Kenya Industrial Property Institute with its office in Lavington.
What is the process of trademark registration in Kenya?
  • Do a trademark search using form TM 27 and indicate the exact list of goods or services you wish the mark to apply to using the World Intellectual Property Organisation’s list of applicable goods and services.
  • Pay the appropriate search fee depending on the number of classes on KIPI ecitizen account.
  • File the search application at the KIPI offices. It takes approximately 2/3 weeks to obtain the search result.
  • Upon receiving the search result, if it says the proposed mark is available for registration you can prepare the appropriate application documents including the agent form if using an agent and the application for registration form. Also indicate the address for service of the proposed proprietor.
  • This is similarly paid for on KIPI ecitizen portal and filed at KIPI office.
  • The Application will also indicate the contact person and the address for service as pertains to that application for registration.
  • Once the trademark is registered, the proprietor receives a trademark certificate, that confirms their name and the mark and its trademark classes and the date of registration.
  • Trademark registration lasts for 10 years after which it is renewable before the Kenya Industrial Property Institute.
What happens if someone opposes my trademark registration application?
These are opposition proceedings and are initiated by an opponent (who usually comes up after advertisement in the KIPI Journal) because he is already the registered proprietor of the mark or he is also using the mark in similar goods or services. The opponent will need to serve you, the Applicant, with his reasons for opposition and this shall be heard and determined by the Industrial Property Tribunal. Appeals lie to the High Court.

Local & International Trademark Infringement

What is the Trademark Registration Procedure at WIPO/ARIPO?
Once you have the basic registration of the mark in Kenya and your business is operating beyond Kenya’s borders, you can easily make an application via WIPO or ARIPO or other regional specialized international organisations. Through these WIPO and ARIPO offices, your application will be presented to the national intellectual property offices of the particular markets and subsequently your trademark will be protected in the specified countries.
What is Trademark Infringement?
  • The trademark owned by a business is infringed by any person who, not being the proprietor or registered user, uses a mark identical with or so nearly resembling it as to be likely to deceive or cause confusion in the course of trade.
  • Under S15A of the Trade Marks Act, the Registrar of Trademarks will not register an unregistered mark with an unconnected proprietor where the mark has a well-known status globally or nationally.
What if you Don’t Own the Mark being Infringed upon?
While you will have no cause of action for breach of trademark under the Trade Marks Act; one can still seek recourse by bring a civil law suit for the tort of passing off whereby you sue the defendant for presenting his goods and services as being your goods and services.

Registering Industrial Designs in Kenya

When Should you Register an Industrial Design?
Ideally, industrial designs should be registered before they are published or publicized to the world. This determines the priority of ownership of the design where there are competing creators.
Where Can I Register my Industrial Designs?
Registration involves filing an application at the Kenya Industrial Property Institute, (KIPI). The application consists of:
  • A completed application form.
  • Specimens of the design
  • Drawings, photographs of the article and an indication of the kind of products
  • Description of the novel features of the design
  • Application fee as Stipulated in the Schedule of Fees in The Industrial Property Act
What is the Duration of Registration and Renewal?
Total timeline to complete the registration process is 3-8 months. The certification of registration confers protection of design for 5 years, thereafter you need to renew the registration every 5th year.
What are the Costs of Registering an Industrial Design in Kenya?
The number of unique designs you wish to have registered to determine the professional legal fees and government fees payable.

Legal & IP Rights FAQs

FAQs on the Registration of Copyright in Kenya

What is the Importance of Copywriting your Work?
Copyright prevents infringing copies being made of artistic work; it allows the creator of the work to be monetarily compensated for their creative, innovative and artistic work through royalties (which is a percentage of the price at which the artistic work is resold) and licensing fees.
What is a Copyright Licence?
  • The owner of the work needs to allow the display or publishing, performance, recording or resale of work through a licence.
  • A licence can be exclusive to one licensee or to many sublicensees. For instance, computer software is licenced to each person who buys the software, that is a sub-licensee.
  • Parties agree on the duration of the term under which the licence will be valid and if not the Copyright Act has clauses on the term of the licence.
Can I Sell/Dispose of my Copyright?
A copyright owner can transfer ownership of his copyright to another person via an assignment. Such an assignment is only valid when registered with KECOBO.
How long does Copyright last in Kenya?
Different types of work run for the particular duration stipulated in law; for instance, copyright in artistic work registered in Kenya ends 50 years after you, as the creator die.
What is Copyright Infringement?

This is the display or publishing, performance, recording or resale of work by a third party without a licence from the owner of the copyright.

Also, Important to Know What Does Not Constitute Copyright Infringement

  • Copyright does not prohibit doing of any of these acts e.g., publishing, performance etc by way of fair dealing for the purposes of scientific research, private use, criticism or review, or the reporting of current events.
  • Copyright does not prevent caricature where a third party makes satirical fun of the artist’s work, or if the work is used in a broadcast, for instance tv or radio broadcast.
Are there Mechanisms for the Enforcement of Copyright in Kenya?
The statutory body in charge of enforcing copyright in Kenya is the Kenya Copyright Board -KECOBO. KECOBO also organizes the collection of royalties for artists and fines/penalises persons and businesses that infringe on copyright. If you want to get in touch with this organization, you can find the contacts on Kenya Copyright Board website.
How Can I Register Copyright in my Work?
The Kenya Copyright Act 2001 and the regulations thereunder set out the process of registration of the various categories of works that can be copyrighted; for instance, you may be interested in learning how to copyright an app in Kenya. The Schedule of Fees also guides creators on the cost of copyright registration in Kenya. Creators of works also have the option for E Registration.

The Recordation of Intellectual Property Rights Pertaining to all Goods Imported into Kenya

Who can record their Intellectual Property (IP) Rights in Kenya with the Anti-Counterfeit Authority (ACA)?
Anyone importing goods into Kenya to which registered IP rights apply ought to record their goods with the ACA. In fact, the Regulations mandate that anyone importing goods into Kenya should record their IP rights over the goods with the ACA.
What Types of IP rights as applying to imported goods require recordation?
Intellectual property rights are eligible for recordation when it comes to imported goods including trademarks and copyrights.
Who can help with the recordation and what documents do I need?

The ACA provides for the appointment of eligible IPR agents such as practising advocates.

You need to have the IPR agent, the advocate, prepare a power of attorney by which you grant them the power to act as your IPR agent in Kenya for recordation purposes.

How many goods can I record in one application?
You can record the IPR for instance a trademark applying to several products and ensure the trademark classes align to the products hence the need to use a competent agent to ensure accurate recordation of IPR applying to the imported goods.
What is the purpose and info provided for recordation?

The ACA’s mandate is to fight counterfeit goods in Kenya. The ACA is working to record and create a database of recorded goods and their characteristics. ACA is taking a proactive approach to protect the IPR in the recorded imported goods and fight counterfeits.

The applicant represented by the IPR Agent will need to provide their name; contact details; name of agent and local distributor if they have a distributor; name of each licensee and details on any affiliated companies with a right to use the IPR abroad. You will also need to provide clear photo representations/samples of the goods and proof of the subsisting IPR right in the form of a status registration certificate.

What is the cost of recordation for trademarks?

Professional Legal Fees USD 200; Disbursements USD 65.

Government fees (in approx. USD currency): Power of Attorney to Agent – USD 20; Application to record: USD 90 for first class and USD 10 for each subsequent class; Submitting particulars of Goods USD 20.

Is it mandatory and what happens if ownership changes?

Yes, this is mandatory under the Anti-Counterfeit Recordation Regulations under Rule 3.

If there is a change in ownership, you are required to immediately submit the amended particulars to the ACA using the proper application form.

When does the ACA start enforcing the new recordation Regulations?
The ACA has issued a public notice stating that they require particulars of imported goods to have been declared by July of 2022 which in essence is the deadline for existing importers. Which means that before this date, importers should have regularised their recordation in anticipation of said enforcement.
1. FAQs on the Process of Buying a House/Apartment in Kenya
Real estate in the form of houses and apartments is considered a favourable asset for investment in Kenya especially in the main cities of Nairobi, Mombasa, Kisumu and in tourist areas like Malindi, Lamu, Nanyuki, Naivasha and Diani. Below, I outline the frequently asked questions I receive at Koya and Company Advocates, when I am taking my clients through the process of buying a house or apartment in Kenya.
  • It is imperative to conduct a land search at the land’s registry in the location where you want to buy land; the point here is to confirm the ownership of the land you intend to buy.
  • The land registry search is either conducted online via the ecitizen platform or you can lodge the application for search at the Lands office in the locality where you intend to buy the land . This land search will also reveal encumbrances on the land such as charges, mortgages where the land is used as security for a loan or caveats which prohibit anyone from dealing with or otherwise disposing of the land.
  • Further if you are buying land from a developer company or a company that sells land, your lawyer needs to conduct a company’s search on the Seller company to see that the company indeed exists and that it is in good legal standing and that the land it intends to sell to you is not encumbered or otherwise disputed.
  • Thereafter the Seller and his Advocate will draft the Agreement for Sale setting out the terms of the sale and one should play close attention to details such as whether the land is freehold or leasehold; whether it is agricultural land or not; the reversionary interest in the land etc.
  • Pay particular attention to your duties as a shareholder of the management company that will be taking care of the entire housing development or estate. Pay close attention to the duration remaining on the leasehold (most land in the cities is held on a long-term leasehold basis as opposed to freehold).

This depends on the Agreement of Sale and ordinarily amounts to 10% of the purchase price.

  • On Completion, the Completion documents consisting of the original title, transfer document, Land rates clearance certificate, stamp duty valuation form, land rent clearance certificate, consents e.g., spousal consent are handed over in order to facilitate registration of the transfer of the apartment/house.
  • On the other hand, the Buyer pays the remainder of the Purchase Price.
  • The Buyer then pays stamp duty on the land assessed on the value of municipal land at a rate of 4% and the value of rural land at a rate of 2%.
  • Thereafter the application is lodged at the Lands Registry for registration of the transfer against the title.
  • The transaction is completed and the Buyer receives a certificate of leasehold (rarely a certificate of freehold if buying in the city).
2. Family Trust Registration in Kenya

A trust is a legal relationship by which a party called a settlor transfers assets to a person called a trustee in order for the assets to be held and used for the benefit of persons called beneficiaries. The settlor can also be the trustee and the beneficiary.

A trust can be for all manner of purposes: for instance, a family trust where assets are held for the benefit of family members and relatives or a charitable trust whose purpose is for the promotion of welfare of a group of individuals for a nonprofit cause.

An incorporated trust is a trust registered by the Registrar of Companies pursuant to the Trustees (Perpetual Succession) Act.

An incorporated trust is a separate legal entity comprising the trustees and it has capacity to hold property in its own name, open a bank account in its own name and sue and be sued in its own name. Usually once you set up a simple trust registered with the registrar of documents, the next step to make it incorporated is to register it with the registrar of companies.

A family trust is a trust holding property for the benefit of family members and or closely related persons e.g. spouses, partners etc.

The main advantages of family trusts are as follows:

  • Smoothness and continuity: smoothness and continuity in administration of family assets in the event of death of a family member; as the family assets are held in an incorporated entity called the family trust, they are not subjected to inheritance procedures and are protected from third party claims of relatives and other survivors of the deceased. Only beneficiaries named in the trust deed will be entitled to use those assets in the event of the death of the settlor.
  • Asset protection of family assets: as the incorporated trust holds assets in its own name and is a legal person, third parties e.g. creditors, judgement creditors cannot access your assets that have been transferred to the family trust in the event you as the individual owes debts. The assets once moved to the trust belong to the trust for the benefit of the beneficiaries including you, they are no longer your individual assets.

Who controls a family trust? A family trust is controlled by the trustees. Once the person transferring his assets into the trust completes the transfer he cedes control of the assets to the trustees and the trustees are on charge of how the trust is run and how the trust is administered for the benefit of the beneficiaries. Note that the settlor who transfers his assets to the trust can retain some control by appointing himself as trustee at inception of the trust.

Who controls the property in a family trust? The trustees control the property including its use, investment, sale and purchase; the settlor may only continue controlling those assets in his capacity as trustee and no longer as the previous owner as the assets after transfer are held in the name of the incorporated trust.

Is there a principle of equality between beneficiaries in a trust? Not necessarily; unless otherwise stipulated the trust is discretionary and it is entirely up to the trustees to determine how income and assets are distributed between beneficiaries. This discretion is beneficial as the trustee at all times is able to weigh the needs of beneficiaries prior to distribution.

In whose name is the property of the trust held? Trust property is held in the name of the incorporated family trust which is a legal entity by itself.

Who is an enforcer in a trust and is their role mandatory? An enforcer is not a mandatory addition to your trust. The enforcer’s role is to ensure the trust is being run as per the terms of the trust deed and they also have power to direct remedial action by the trustees for the benefit of beneficiaries and the trust as a whole. The enforcer is a person who is not the trustee as they hold the trustees accountable.

Governance: It is advisable to have less than more trustees for a trust of moderate value in order to avoid frequent disputes between trustees that can lead to deadlocks in the trust. It is also prudent to appoint a trustee who is diplomatic, agreeable, and well nuanced in social and cultural issues especially in the context of a family trust in Kenya. The trustee should be an efficient administrator who can keep good records and act for the benefit of all beneficiaries.

Does a settlor control assets that have been settled on the trust? Once the settlor transfers the assets to the incorporated family trust, they cease to control the assets unless they appoint themselves as a trustee and even then they control the assets for the benefit of beneficiaries and not in their capacity as settlor.

3. Family Trusts in Kenya and Why you should have one to Protect your assets?

Starting a family trust can protect family assets from outsiders in 4 main ways as follows:

  • Creditor Protection: The incorporated trust is a legal entity by itself to hold assets for the benefit of you and your family and this can be useful to protect you from persons whom you owe money in your own name. Practical examples: you cause a road accident and you are required under a civil suit to pay the victim accident compensation money and part of the money is not covered by the scope of the insurance policy on the car, if you have no cash at hand to pay the judgement debt your assets may be liable to attachment to pay such a judgement debt. However, if you hold no important personal assets such as land, as you had already secured this in an incorporated family trust – you are well protected.
  • Matrimonial Protection: Another instance of how it protects your assets for the family is if you marry and your assets are within a trust, it is extremely difficult for such assets to be liable to be deemed as matrimonial assets and thus in event of divorce, the assets you brought into marriage via your trust are protected from being distributable under the Matrimonial Property Act as a trust is the owner of the said assets.
  • Succession Bypass: A family trust is also good because it bypasses the inheritance/succession process such that upon death of the settlor, if the assets are duly held in the family trust, the assets are still available to the use of the living beneficiaries as there is no need to go to court to get letters of administration or probate which can be expensive and subject to legal challenge by objectors and other family members.
  • Continuity: Also upon the death of the settlor who is a named trustee, there is a clear clause in your trust deed for how a successor trustee shall be appointed to replace the dead trustee thus it is more seamless and the trust assets are not liable to loss or waste in the period after the settlor’s death as control of the assets is maintained through the successor trustee.
  • Beneficiaries are named or designated persons in your trust deed whom benefit from your trust. This can include you as the settlor.
  • You can name the persons who are living and you can also designate an ascertainable class of people to be your beneficiaries e.g. naming your “children” as your beneficiaries covers your children both future and living as well as biological and legally adopted children.
  • Anybody can be a beneficiary of your trust whom you would wish to benefit under your trust including: spouses, life partners, children, and other relatives.
  • Obviously it is more prudent to put name beneficiaries whom you know in the trust to avoid inferences of a sham family trust and to avoid challenges from outsiders whom are not as vested in the family benefitting as you may be. The whole concept of a family trust is to benefit your loved ones.
  • You can also exclude specified people from being your beneficiaries e.g. your children “except, so and so.”

The Trust Deed: The trust deed is the most important family trust document that is used to form the family trust. It should be drafted by a competent lawyer. A generic family trust deed that is not tailored to your circumstances can be highly risky. For those reasons, it is highly advisable not to use DIY trust deeds without the lawyer’s input. A family trust deed is the constitutive and governing document of your family trust and as such before having it registered with the registrar of companies, it should have all relevant clauses that ensure the assets in the family trust are protected from outsiders and from waste by trustees of the trust.

Number of Trustees: The Trustees Act under Section 36 envisages a minimum of 1 and maximum of 4 Trustees for the Trust. It is better to have fewer than more trustees for the advantage of cohesive administration marked by less disputes. Also it is cheaper as trustees can be entitled to remuneration for their service in accordance s with the trust deed.

Personality and Character: It is vital to choose a person who is competent, wise, culturally and socially astute, conciliatory and cooperative as your trustee; these tend to be the long-term character traits that aid efficient administration of a family trust for many decades. Choice of trustees with these useful personality traits is actually one of the more important decisions when registering a family trust.

  1. Consultation is held with the lawyer to understand objectives, family dynamics, and assets.
  2. The trust deed is drafted and signed before a commissioner for oaths. A family trust is usually irrevocable.
  3. The Trust deed is taken for stamp duty assessment and paid.
  4. The document is registered by the Registrar of Documents at Ardhi House.
  5. Incorporation begins with Business Registration Service (Form TRA 1).
  6. Documents required: petition to set up trust, 1-page summary, title deeds, recent searches, proof of holding for cash assets (bank statements). Trustees provide bank accounts, photos, contacts, KRA PIN, and address.
  7. Incorporation takes approximately 1 month barring issues.
  8. Once incorporated, trustees are notified to collect certificate at 316 Chambers in Upper Hill (BRS location).
  9. Original documents (deed, statements, IDs, searches) must be carried for verification during collection.
  • Register the Trust to obtain a KRA Pin Certificate.
  • Open bank and investment accounts.
  • Liaise to transfer land assets into the name of the family trust (note: all owners must agree for jointly owned land).
  • Keep proper and meticulous records; consider appointing a certified secretary/company secretary to assist.
  • Record all distributions of assets or income to beneficiaries (minutes and resolutions are crucial).
  • Develop a trust constitution to outline standard operating procedures for future successors.