CORPORATE SCENE
CPF Group Chief
Executive Officer Hosea
Kili, OGW Discusses
CPF’S Array Of Trust
Fund Services
By Marketing Africa Crew
O
ver time, the need for trust funds
has become increasingly popular
and in demand occasioned by the
unfortunate occurrence of death or other
events that might arise. While the concept
of Trust Funds is not new, trust funds are
great vehicles that ensure the purpose for
which assets were set is met and can take
up any form of assets such as real estate,
livestock, cash, stocks, pension and other
valuables bequeathed to a minor as is
declared in a formal will. otherwise, it would be best to ensure that
the funds are distributed according to the
wishes of the deceased.
With regard to pension schemes, the
nomination of beneficiary forms act as a
guide for use by the trustees as pension
funds do not form part of the estate of
the deceased. Trustees of pension funds,
therefore, have a fiduciary responsibility
of ensuring that the funds they hold in
trust are well utilized in accordance with
their mandates as set out in the scheme
trust deed and rules. Marketing Africa sat down with CPF
Group Chief Executive Officer Mr.
Hosea Kili, OGW as we sought to better
understand trust funds and their role in
the economy.
Although trustees have discretionary
rights on how to have the funds distributed
especially where the deceased may have
omitted some dependents knowingly or
CPF has set up the first registered trust
in Kenya. Dubbed “CPF Imara” the
CPF Trust Fund is registered under
Cap 164 of the Laws of Kenya vide
Certificate Registration No. CF.310590
to administer both private/individual and
corporate trusts in addition to the welfare/
benevolent funds.
Marketing Africa: What is
a Trust Fund and why did
you find it important to set
up CPF Imara?
Hosea Kili: A trust is a legal arrangement
whereby a person or an entity (known
A trust is a legal arrangement whereby
a person or an entity (known as a trust-
ee) holds assets in trust not for their
own benefit, but for the benefit of nom-
inated beneficiaries. The trust provides
for the safe and accountable manage-
ment of assets in accordance with the
settlor’s wishes, goals and objectives.
36 MAL32/19 ISSUE
as a trustee) holds assets in trust not for
their own benefit, but for the benefit
of nominated beneficiaries. The trust
provides for the safe and accountable
management of assets in accordance with
the settlor’s wishes, goals and objectives.
The concept of a trust is not a new one. In
fact, trusts were conceptualized centuries
ago in kingdoms and monarchies. In cases
where minors were primed to inherit the
throne, a regent (who is a person appointed
to administer a state because the monarch
is a minor) would be appointed.
The issue would arise if the relatives would
disagree on the regent, thereby inviting
disagreements among families and some
relatives would even use such chances for
their selfish gain.
In this particular context, minors would
not be allowed to rule the kingdom until
they came of age. They were presumed to
be incapable of making sound decisions
including when to go to war, how to solve
disputes, bring about justice and otherwise
choices expected of a king.
That is still the same today. Children are
practically incapable of making choices
on how to use money and other forms
of assets left for them by their parents or
guardians.
We at CPF, guided by the Board of
Trustees, decided to set up the Trust Fund
out of the need to ensure that beneficiaries,
left behind by our members, were not left
in the dark once their sponsors passed
on. Moreover, the issue of poor estate
planning has grown in prominence over
the years. Numerous estate owners have