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{
"id": 1105151,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1105151/?format=api",
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"type": "speech",
"speaker_name": "Homa Bay CWR, ODM",
"speaker_title": "Hon. (Ms.) Gladys Wanga",
"speaker": {
"id": 590,
"legal_name": "Gladys Atieno Nyasuna",
"slug": "gladys-atieno-nyasuna"
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"content": "powers for revocation of trusts, otherwise, deemed irrevocable where such express power is not provided. In addition, there are instances where the person who creates the trust and transfers the property to the trustee, who is called the settler, would want to set up a trust which he or she is a beneficiary. The Bill proposes to include the settler as one of the beneficiaries of trust property provided that they are living. The current situation is such that if you are the person who has created the trust, you cannot be a beneficiary of that very trust. This Bill is changing that. It may be a necessity to inform the House how a trust works. Firstly, a trust is simply a legal entity through which property or assets such as cash, real estate or other investments can be protected, invested and set aside to provide for specific people or causes that you care about, either when you are living or dead. In summary, a trust holds assets and property in a fiduciary relationship by one party for the benefit of another. The reason why we are keen and interested is because if we provide a favourable environment for creation of trusts here in Kenya, then you will not find people getting their wealth and properties outside of the country in order to protect them for their future generations. We will be able to retain this wealth here in Kenya and encourage all of us here to set up trusts. People imagine that trusts are only for the rich people. Anybody who has anything to bequeath can set up a trust and leave it to future generations. So, trusts should not be seen as if they are only for billionaires and multi-millionaires. The Committee carried out public participation on this Bill and I would like to mention this because, many times, there is litigation as to whether public participation was conducted. We received memoranda and presentations from 10 stakeholders, namely: Sisule and Associates Advocates, Anjarwalla and Khanna Advocates, the East Africa Philanthropy Network, the Kenya Community Development Foundation, the Region Management Limited, Ashitiva Advocates, Oraro and Company Advocates, Klmakia Magara and Partners Advocates, Robol Law Office, Kemunto Moturi and Associates Advocates and ENS Africa Advocates. The majority of the stakeholders noted that trusts form the engine for wealth accumulation and that there is need to reinvigorate their participation in the socio-economic development of the country through registered trusts. The legal framework to re-engineer the administration and management of wealth held in trust for generational transfer is important as it guarantees perpetuity in wealth at both the family and institutional levels. In considering the Bill, the Committee observed that the amendment will simplify and remove bureaucracy and the tedious process involved in setting up a trust as I had already mentioned. This will result from the removal of powers for registration from the CS and vesting it with the Principal Registrar of Documents. The Bill also goes ahead to define various types of trusts such as charitable trusts, family trusts, non-charitable trusts, et cetera . This is so that if you have a course you believe in, you can set up a trust for example for cancer research or any other course that you believe in, like malaria research. If it is in athletics, you can set up a trust to support such. As I conclude, allow me to express my special thanks to Members of the Departmental Committee on Finance and National Planning, staff of the Committee, the stakeholders who gave us their views, the Speaker and the Clerk and this House for giving us the opportunity to present these amendments. With those many remarks, I beg to move and ask Hon. Mboni, the Member for Kitui Rural to second. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}