Some divorces end with a fight over who keeps the house. Others, over who takes the land in the village or the car parked in the driveway. But in GKW v RNK [2025] KECA 1475, the fight wasn’t about a single piece of property. It spilled into the world of companies. This was no ordinary divorce; it was a battle over the corporate veil itself.

Hiding assets in plain sight

RNK told the court that her former husband had tucked away matrimonial wealth inside companies, including the home they had lived in for over twenty years. To her, the companies were just containers for family property.

GKW saw it differently. His line was simple: a company is a separate legal person. Whatever sat under a company title, he argued, was beyond the reach of matrimonial proceedings.

The Court wasn’t buying it

The Court of Appeal cut through that argument and made three bold points:

• Shares acquired during marriage are matrimonial property: they belong in the pool for division.
• The corporate veil can be pierced: if a company is being used to warehouse matrimonial assets, the court will look behind the structure.
• Equality in marriage is paramount: Article 45 of the Constitution of Kenya guarantees it and corporate formalities cannot be used to undermine it.

In short: clever paperwork cannot erase a spouse’s beneficial interests.

Why it matters

This ruling shuts the door on a strategy long used in high value divorces: transferring assets to companies to keep them out of reach. The Court was clear that the law will not allow spouses to frustrate fairness by hiding behind corporate personality.

It also reflects modern realities. Many families today hold wealth through companies, whether for tax, investment, or convenience. But when marriages break down, those companies cannot be treated as sacred vaults. When marriages collapse, courts must cut through appearances to deliver justice.

The bottom line

The corporate veil remains important in commercial law, but in matrimonial disputes, it is thin. If a company is holding property built during marriage, the courts will treat it as part of the matrimonial estate.

For spouses who thought incorporation was a clever shield, the Court of Appeal has answered: in matrimonial disputes, the corporate veil will not hide you.