LAWS OF KENYA
TRUSTS OF LAND ACT
CAP. 290
- Published in Kenya Gazette Vol. XLIII—No. 53 on 16 December 1941
- Assented to on 22 December 1941
- Commenced on 22 December 1941
- [Amended by Statute Law (Miscellaneous Amendments) Ordinance, 1961 (Act No. 15 of 1961) on 8 August 1961]
- [Amended by Law Reform (Rules of Court) Ordinance (Act No. 27 of 1961) on 26 December 1961]
- [Amended by Kenya (Amendment of Laws) (Written Laws) Order, 1963 (Legal Notice 2 of 1964) on 12 December 1963]
Part I – PRELIMINARY
1. Short title
This Act may be cited as the Trusts of Land Act2. Interpretation
In this Act, unless the context otherwise requires—“building purposes” includes the erecting and the improvement of, and the adding to, and the repairing of buildings; and a “building lease” is a lease for any building purpose or purposes connected therewith;“court” means the High Court;“disposition” and “conveyance” include a mortgage, charge, deposit of title deeds or other documents by way of security, lease, assent, disclaimer, release and every other assurance or act or thing taking effect as an assurance of land or of an interest therein by any instrument, except a will; and “dispose of” and “convey” have corresponding meanings;“instrument” does not include any Act or Statute unless that Act or Statute creates a settlement within the meaning of Part III of this Act;“land” includes land of any tenure, and mines and minerals, whether or not held apart from the surface, buildings (whether the division is horizontal, vertical, or made in any other way) and other immovable property; also a rent, easement, right, privilege or benefit in, over or derived from land, and any estate or interest in land;“lease” includes an agreement for a lease;“limitation” includes a trust; and “trust” includes an implied or constructive trust;“mines and minerals” means mines and minerals whether already opened or in work or not, and includes all minerals and substances in, on or under the land, obtainable by underground or by surface working; and “mining purposes” includes the sinking and searching for, winning, working, getting, making merchantable, smelting or otherwise converting or working for the purposes of any manufacture, carrying away and disposing of mines and minerals, and the erection of buildings, and the execution of engineering and other works suitable for those purposes; and a “mining lease” is a lease for any mining purposes or purposes connected therewith, and includes a grant or licence for any mining purposes;“mortgage” includes any charge or lien on any land for securing money or money’s worth;“mortgage money” means money or money’s worth secured by a mortgage;“movables” includes all property other than land;“personal representative” means the executor or administrator for the time being of a deceased person, and where there are special personal representatives for any purpose means for that purpose those personal representatives;“possession” includes receipt of rents and profits or the right to receive them, if any; and “income” includes rents and profits;“purchaser” means a purchaser in good faith for valuable consideration and includes a lessee, mortgagee or other person who for valuable consideration acquires an interest in property, except that in Part I and elsewhere where so expressly provided “purchaser” means only a person who acquires an interest in or charge on property for money or money’s worth; and in reference to a legal estate includes a chargee by way of legal mortgage; and where the context so requires “purchaser” includes an intending purchaser;“purchase” has a meaning corresponding with that of “purchaser”; and“valuable consideration” includes marriage but does not include a nominal consideration in money;“rent” includes yearly or other rent, and toll, duty, royalty or other reservation, by the acre, or the ton, or otherwise; and, in relation to rent,“payment” includes delivery; and “fine” includes premium or fore-gift, and any payment, consideration, or benefit in the nature of a fine, premium, or fore-gift;“securities” includes stocks, funds, and shares;“trust corporation” includes the Public Trustee, and any other person holding any other official position prescribed by the President, and any corporation appointed by the court in any particular case to be a trustee or which is for the time being a trust corporation within the meaning of the Law of Succession Act (Cap. 160), and, in relation to the property of a bankrupt and property subject to a deed of arrangement, includes the trustee in bankruptcy and the trustee under the deed respectively, and, in relation to charitable, ecclesiastical and public trusts, also includes any local or public authority so prescribed, and any other corporation constituted under the laws of Kenya which satisfies the President that it undertakes the administration of any such trusts without remuneration, or that by its constitution it is required to apply the whole of its net income after payment of outgoings for charitable, ecclesiastical or public purposes, and is prohibited from distributing, directly or indirectly, any part thereof by way of profits among any of its members, and is authorized by him to act in relation to those trusts as a trust corporation;“trust for sale”, in relation to land, means an immediate binding trust for sale, whether or not exercisable at the request or with the consent of any person, and with or without a power at discretion to postpone the sale;“trustees for sale” means the persons (including a personal representative) holding land on trust for sale; and “power to postpone a sale” means power to postpone in the exercise of a discretion.[Act No. 15 of 1961, Sch.]3. Power to postpone sale
4. Duration of trusts for sale
5. Appointment of new trustees for sale of land
6. Consents to the execution of trust for sale
7. Purchaser not concerned with trusts of proceeds of sale if paid to two or more trustees or a trust corporation
Part II – IMPLIED TRUSTS FOR SALE
8. Trust for sale of mortgaged property where right of redemption is barred
9. Trust for sale in settlement of movables
Part III – STATUTORY TRUSTS FOR SALE
10. What constitutes settled land
Any land which, at the commencement of this Act, stands, or which, after the commencement of this Act under or by virtue of any deed, will, agreement, Act or other instrument, or any number of instruments, is or becomes, or purports to be or become—11. Transitional provisions converting settlements into trusts for sale
12. Attempted settlement constitutes trust for sale
13. Infants cannot hold settled land
14. Application of rents and profits pending exercise of statutory trust for sale
The net rents and profits until sale of any settled land in respect of which a trust for sale is constituted by any of the provisions of this Part, after keeping down costs of repairs and other outgoings, shall be paid or applied in the same manner as they would for the time being have been paid or applied if no trust for sale had been constituted and all the provisions of the settlement had been permitted to take effect.15. Devolution of proceeds of statutory trust for sale and income therefrom
16. Extent of Application of Part
Part IV – POWERS OF TRUSTEES FOR SALE
17. Power of sale and exchange
Trustees for sale of land may—18. Leasing powers
19.- Leases for special subjects
The leasing power of trustees for sale extends to the making of—20.- Power on disposition to impose restrictions and make reservations and stipulations
21. Separate dealing with surface and minerals
A sale, exchange, lease or other authorized disposition may (in such manner and so far as the law permits) be made either of land, with or without an exception or reservation of all or any of the mines and minerals therein, or of any mines and minerals, and in any such case with or without a grant or reservation of powers of working, wayleaves or rights of way, rights of water and drainage, and other powers, easements, rights, and privileges for or incident to or connected with mining purposes, in relation to the land held or acquired by the trustees for sale, or any part thereof, or any other land.22. Power to grant options
23. Surrenders and regrants
24. Acceptance of leases
25. Power to compromise claims and release restrictions
26.- Power to vary leases and give licences and consents
Trustees for sale of land may at any time, by deed or writing, either with or without consideration in money or otherwise, vary, release, waive or modify, either absolutely or otherwise, the terms of any lease whenever made of the land held upon trust for sale or any part thereof or any covenants or conditions contained in any grant in fee simple whenever made of land with or subject to a reservation thereout of a rent which is or forms part of the land held upon trust for sale, and in either case in respect of the whole or any part of the land comprised in any such lease or grant, but so that the lease or grant shall, after that variation, release, waiver or modification, be a lease or grant which might then have been lawfully made under this Act if the lease had been surrendered or the land comprised in the grant had never been so comprised or had been regranted.27. Power to apportion rents
28. Provisions as to consideration
29. Cutting and sale of timber and disposal of proceeds
30.- Shifting of encumbrances
Where there is an encumbrance affecting any part of the land held upon trust for sale (whether capable of being over-reached on the exercise by the trustees for sale of their powers under this Act or not), the trustees for sale, with the consent of the encumbrancer, may charge that encumbrance on any other part of the land, or on all or any part of the capital money or securities representing capital money subject, or to become subject, to the same trusts as capital money arising by exercise of the trust for sale, whether already charged therewith or not, in exoneration of the first-mentioned part, and by a legal mortgage, charge, or otherwise, make provision accordingly.31.- Power to vary provision of encumbrance and to charge by way of additional security
32. Power to raise money by mortgage or charge
33. General powers of management, etc
34. Completion of transactions
35. Delegation of powers by trustees
36. General power to effect any transaction under order of court
37. Application of Part and saving for additional or larger powers
Part V – INVESTMENT OR OTHER APPLICATION OF CAPITAL MONEY
38. Mode of investment or application
Capital money arising by exercise of a trust for sale of land, subject to payment of claims properly payable thereout and to the application thereof for any special authorised object for which the capital money was raised, shall, when received, be invested or otherwise applied wholly in one, or partly in one and partly in another or others, of the following modes—39.- Money paid for lease or reversion
Where capital money arising by exercise of a trust for sale of land, or deemed to be capital money so arising, is purchase-money paid in respect of—40. Money received by way of damages for breach of covenant
41.- Money in court and derived from compulsorily acquired land
Where, under an Act, or under any order or scheme confirmed by or having the force of an Act relating to the compulsory acquisition of land, or under any Act, whether public or private, money is at the commencement of this Act in any court, or is afterwards paid into any court, and is liable to be laid out in the purchase of land to be made subject to a settlement or trust for sale, then, in addition to any mode of dealing therewith authorised by the Act under which the money is in court, that money may be invested or applied as capital money arising by exercise of a trust for sale of land, on the same terms, if any, respecting costs and other things, as nearly as circumstances admit, and notwithstanding anything in this Act according to the same procedure, as if the modes of investment or application authorised by this Act were authorized by the Act under which the money is in court.42.- Money in hands of trustees under powers of settlements
Where, under any instrument coming into operation either before or after the commencement of this Act, money is in the hands of trustees, and is liable to be laid out in the purchase of land to be made subject to the trusts declared by that instrument, then, in addition to any powers of dealing therewith which the trustees have independently of this Act, they may, at their option, invest or apply the money as if it were capital money arising by exercise of a trust for sale of land.43. Provision as to movables settled by reference to capital money or on trusts corresponding with the limitations of land
44.- Application of Part
The provisions of this Part apply only if and as far as a contrary intention is not expressed in the instrument, if any, creating the trust for sale, and shall have effect subject to the terms of that instrument, and to any provisions therein contained.Part VI – IMPROVEMENTS
45. Improvements authorized by this Act
Improvements authorized by this Act are the making or execution on, or in connexion with, and for the benefit of, land held upon trust for sale of any of the works mentioned in the Schedule, or of any works for any of the purposes mentioned in the Schedule, and any operations incident to or necessary or proper in the execution of any of those works or necessary or proper for carrying into effect any of those purposes, or for securing the full benefit of any of those works or purposes.46. Mode of application of capital money
47. Court may order payment for improvements executed
The court may, in any case where it appears proper, make an order directing or authorizing capital money to be applied in or towards payment for any improvement authorised by this Act, whether executed before or after the commencement of this Act, notwithstanding that a scheme was not, before the execution of the improvement, submitted for approval to the court, and notwithstanding that no capital money is immediately available for the purpose.48.- Application of Part
The provisions of this Part apply only if and as far as a contrary intention is not expressed in the instrument, if any, creating the trust for sale, and shall have effect subject to the terms of that instrument, and to any provisions therein contained.Part VII – GENERAL PROVISIONS AS TO TRUSTEES OF LAND
49.- Surviving or continuing trustees can act
Subject to subsection (2) of section 7, the provisions of this Act referring to trustees for sale of land apply to the surviving or continuing trustees or trustee for sale for the time being.50.- Trustee’s receipts
The receipt or direction in writing of or by the trustees for sale of land, or where a sole trustee for sale of land is a trust corporation or personal representative, of or by that trustee, or of or by the personal representative of the last surviving or continuing trustee for sale of land, for or relating to any money or securities, paid or transferred to or by the direction of the trustees, trustee or representatives, as the case may be, effectually discharges the payer or transferor therefrom, and from being bound to see to the application or being answerable for any loss or misapplication thereof, and, in case of a mortgagee or other person advancing money, from being concerned to see that any money advanced by him is wanted for any purpose of this Act, or that no more than is wanted is raised.51.- Protection of each trustee individually
Each person who is for the time being a trustee for sale of land is answerable for what he actually receives only, notwithstanding his signing any receipt for conformity, and in respect of his own acts, receipts and defaults only, and is not answerable in respect of those of any other trustee, or of any banker, broker or other person, or for the insufficiency or deficiency of any securities, or for any loss not happening through his own wilful default.52.- Indemnities to personal representatives and others
Trustees for sale of land, personal representatives and other persons who have in good faith, pursuant to a trust for sale of land or this Act, executed a conveyance, transfer, assent, assignment or other disposition of the land held upon trust for sale, or a deed of discharge of trustees, shall be absolutely discharged from all liability in respect of the equitable interests and powers taking effect under the instrument (if any) constituting the trust for sale, and shall be entitled to be kept indemnified at the cost of the trust estate from all liabilities affecting the land held upon trust for sale, but the person to whom the land held upon trust is conveyed, transferred, assigned or otherwise disposed of (not being a purchaser taking free therefrom) shall hold the land upon the trusts (if any) affecting it.53.- Reimbursement of trustees
Trustees for sale of land may reimburse themselves or pay and discharge out of the trust property all expenses properly incurred by them.Part VIII – SUPPLEMENTARY PROVISIONS
54.- Prohibition or limitation against exercise of powers void, and provision against forfeiture
55.- Powers of court where trustees for sale refuse to exercise powers
If trustees for sale of land refuse to sell or to exercise any of the powers conferred by this Act, or any requisite consent cannot be obtained, any person interested may apply to the court for a vesting order or other order for giving effect to the proposed transaction or for an order directing the trustees for sale to give effect thereto, and the court may make such order as it thinks fit.56.- Application to personal representatives
The provisions of this Act relating to trustees for sale of land apply to personal representatives holding land upon trust for sale, but without prejudice to their rights and powers for purposes of administration.57.- Rules
The Minister may make rules—58.- Saving
Nothing contained in this Act shall in any way prejudice or affect the rules of Mohammedan law relating to Wakf or the operation of the Registration of Titles Act (Cap. 281), and the provisions of this Act shall in respect of land registered under the Registration of Titles Act only take effect if and so far and in such manner as provided for by that Act or so far as not inconsistent therewith.History of this document
12 December 1963 this version
26 December 1961
08 August 1961
22 December 1941
Assented to
Commenced
16 December 1941
Cited documents 2
Act 2
1. | Law of Succession Act | 4192 citations |
2. | National Land Commission Act | 373 citations |
Documents citing this one 2
Legal Notice 2
1. | The Statutory Instruments (Exemption from Expiry) Regulations | 1 citation |
2. | The Statutory Instruments (Exemption from Expiry) Regulations |