A parliamentary committee has rejected a government proposal to amend the Unclaimed Financial Assets Act to allow claimants to assign third parties to collect their assets.
The Unclaimed Financial Asset (Amendment) Bill, 2024, sought to permit the Unclaimed Assets Authority to release funds to individuals designated by claimants when they are unavailable. However, the Finance Committee of the National Assembly, led by Molo MP Kuria Kimani, recommended deleting the provision, citing concerns over potential fraud and abuse.
The committee expressed fears that the provision could facilitate the transfer of illicit funds or lead to disputes due to fraud, undue influence, or claimant incapacity.
The current law defines unclaimed assets as those presumed abandoned, transferred to the Unclaimed Assets Authority, or deemed unclaimed under any other law. It includes income, dividends, or interest, excluding lawful charges.
The proposed amendments faced opposition from stakeholders, including the Law Society of Kenya, the Unclaimed Financial Assets Authority (UFAA), the Attorney General, and the Institute of Certified Public Accountants, leading to its rejection.
The bill, sponsored by Majority Leader Kimani Ichung’wah, will now go to the National Assembly for a vote.
