- The Evolving Landscape
On 12th September 2025, the Court of Appeal delivered a ruling in GKW v RNK ( Civil Appeal 605 of 2019) , upholding the High Court’s decision to allow the wife to amend her pleadings to include limited liability companies in an ongoing matrimonial property dispute.
While this was an interlocutory procedural appeal- not a final determination of ownership or liability, its implications for wealth structuring and protection are significant. It signals how the courts are increasingly willing to look beyond formal structures and examine the substance of wealth ownership.
- The Expanding Reach Of Matrimonial Property Law
The Court of Appeal was not deciding who owns what, it was determining whether companies, distinct legal entities, could be joined as parties in matrimonial property proceedings ?
In upholding their inclusion, the Court reaffirmed a growing judicial principle; that justice requires bringing before the court all parties necessary to determine the real question in controversy.
This development underscores how Kenya’s legal system is evolving toward economic realism. A willingness to ‘ look behind’ legal forms where:-
- The entity is closely held by spouses ;
- The assets are interwoven with marital wealth; or
- The structure is used to shield family property under the guise of corporate personality
- Rethinking Wealth Planning: What does this case mean for you ?
This ruling does not invalidate corporate or trust based wealth protection, far from it ! It simply yet loudly confirms that wealth protection is no longer a paper work exercise. Poorly designed or loosely governed structures will fail. As courts, regulators, and tax authorities evolve, so must your wealth strategy.
At Ithera Africa, we have long anticipated this shift. Our philosophy has never been about ‘hiding’ wealth, it ‘s about ‘protecting it’. We design legally defensible wealth structures, integrating law, tax and family governance, to ensure resilience under scrutiny.
We help our clients:
- Engineer airtight family and investment companies & trusts with governance that meet economic and legal tests and reflect true separation and control ;
- Align corporate and tax compliance with long term wealth preservation goals ; and
- Develop succession plans that mitigate legal and relational risks.
Walk this journey with advisors who understand the intersection of law, tax and family governance.
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Authors: Waithira Mugo (Tax Lawyer) & Mike Ogutu (Commercial Lawyer).
Disclaimer –This Article is in general terms for guidance only and is not intended to substitute professional advice. While due diligence has been undertaken, in ensuring the accuracy of information provided herein, Ithera Africa is not responsible for any actions or omissions undertaken as a result of the same.
