For many Kenyan professionals, wealth today is no longer confined to land and bank accounts. It sits in M-Pesa wallets, sacco shares, pension schemes, side businesses and even monetised social media platforms. However, while assets are growing and becoming more complex, the planning needed to protect them has not kept pace.
The result, lawyers warn, is that even modest estates are increasingly ending up in court, locked in disputes or distributed in ways that do not reflect the owner’s wishes.
‘A complete estate plan in Kenya usually includes at least five core documents: a valid written will, a trust (where appropriate), a power of attorney, a healthcare directive, and a business succession plan. Around these, you should also maintain updated beneficiary nominations and a clear record of your assets,’ says Njuguna Muri, an estate and succession lawyer at Muri Mwaniki Thige and Kageni LLP.
Most people die intestate (without a written will), so their estates are distributed under the Law of Succession Act. In practice, this often leads to outcomes that families did not anticipate.
‘People assume the law will do the ‘right thing,’ but intestate distribution can produce results very different from what the deceased actually wanted,’ Njuguna says.
‘For example, in a marriage with children, the surviving spouse may receive only a life interest rather than outright ownership of the estate.’ He attributes the low uptake of estate planning to a mix of cultural, psychological and practical factors.
‘There is still a strong cultural discomfort around discussing death, with many people feeling that planning invites misfortune. Then there is the ‘I’m too young’ mindset, the belief that estate planning is only for the wealthy, and simple procrastination; even among professionals who know better.’
Common will mistakes
At the centre of any estate plan is the will, yet it is also where many people go wrong.
‘The most common mistake is vague drafting, people say ‘I leave my property to my children’ without specifying which property or in what shares,’ Njuguna explains. ‘Others fail to meet basic legal formalities such as proper signing and witnessing, or they never update the will after major life events like marriage, divorce or acquiring new assets.’
The consequences can be severe.
‘Kenyan courts regularly deal with disputes over wills based on lack of capacity, undue influence or improper execution, and they will not hesitate to invalidate a defective will,’ he adds.
When a trust is preferred
For individuals with more complex estates, particularly those involving multiple properties or business interests, a trust is increasingly becoming a preferred tool.
‘A living trust allows you to transfer assets to trustees during your lifetime to manage for your beneficiaries,’ Njuguna says.
‘Unlike a will, it can operate immediately, it offers privacy, and it provides continuity if you die or become incapacitated.’
He notes that family trusts are gaining traction among Kenyan professionals as a way to ring-fence wealth and create long-term structures for managing it. ‘For business owners and individuals with significant portfolios, a well-drafted trust can be the difference between a coordinated legacy and years of succession disputes.’
The power of attorney
While wills and trusts deal with what happens after death, a power of attorney addresses what happens during one’s lifetime.
‘A power of attorney allows someone you trust to act on your behalf in financial, legal or property matters,’ Njuguna explains.
‘It is particularly useful if you are travelling, unwell or otherwise unable to manage your affairs.’ However, he is quick to point out its limitations. ‘A power of attorney is a lifetime tool; it automatically ends on death and cannot replace a will or a trust.’
Healthcare directives
Healthcare directives, sometimes referred to as living wills, remain relatively uncommon in Kenya, but are slowly gaining attention.
‘A healthcare directive allows you to set out your medical treatment preferences in advance, including decisions about life support or resuscitation,’ Njuguna says.
‘The challenge in Kenya is that while the Constitution and the Health Act recognise patient autonomy, there is no detailed legal framework governing advance directives. Doctors are often more comfortable relying on decisions made in real time by a conscious patient than on a document signed years earlier, especially if family members disagree. Even so, these directives can significantly reduce conflict and emotional burden for families.’
Business succession plan
For business owners, the gap between personal estate planning and business continuity is one of the most critical and often overlooked issues.
‘A will tells you who inherits your shares, but it does not tell you how the business will be run the next day,’ Njuguna says. ‘That is why a separate business succession plan is essential.’
Without it, he warns, businesses can quickly descend into conflict. ‘You end up with disputes over control, uncertainty for employees, and in some cases, the collapse of the enterprise itself.’
Record of digital assets
Another emerging challenge is the treatment of digital assets, an area where the law is still catching up. ‘Digital assets are now a real part of people’s estates, M-Pesa balances, online accounts, cryptocurrency, even monetised social media platforms,’ Njuguna says. ‘But if you do not document how to access them, passwords, private keys, instructions, they can be lost entirely.’
He advises individuals to maintain a secure record of digital assets and ensure that executors or trustees are equipped to handle them.
‘Without clear instructions, families can find themselves locked out of valuable assets with no practical way to recover them.’
Inheritance disputes remain one of the most visible consequences of poor planning, and they are often triggered by the absence of a will or unclear instructions. ‘The most common disputes involve land, family businesses and questions about who qualifies as a dependant,’ Njuguna adds.
In more complex family setups, the tensions can be even greater.
‘Polygamous and blended families introduce additional layers of complexity, particularly where there are competing expectations or perceived inequalities. Without clear planning, these situations can lead to long-running and highly emotional disputes.’
Minding the tax
Although Kenya does not currently impose inheritance tax, there are still financial considerations that families need to keep in mind.
‘Transfers of assets to beneficiaries during succession are generally exempt from capital gains tax and stamp duty,’ Njuguna says.
‘However, if a beneficiary later sells inherited property, capital gains tax will apply, and it is important to have a clear and defensible valuation at the point of inheritance.’
Ultimately, estate planning is less about wealth level and more about preparedness.
‘Even a middle-income Kenyan with a plot, a pension, life insurance and some savings has an estate that needs structure. The key is to start early.’