National Assembly Majority Leader Kimani Ichung’wah has officially withdrawn a bill that aimed to allow owners of unclaimed financial assets to designate someone else to receive payments on their behalf.
Speaker of the National Assembly, Moses Wetang’ula, confirmed the withdrawal of the Unclaimed Financial Assets (Amendment) Bill (National Assembly Bill No. 15 of 2024), following a request from Ichung’wah. The decision came after the Finance Committee rejected the proposed amendments in December 2024.
“I have accepted the request and now direct that the Unclaimed Financial Assets (Amendment) Bill be withdrawn immediately,” stated Wetang’ula.
The proposed amendments sought to change sections 28 and 45 of the Unclaimed Financial Assets Act of 2011. The primary objective was to grant claimants the legal right to appoint another person to collect their unclaimed assets in cases where they were unavailable.
This change would have allowed the Unclaimed Financial Assets Authority (UFAA) to process such claims more flexibly.
Why the Bill Faced Rejection
Despite its intentions to make the claims process easier, the bill faced strong opposition from the Finance Committee and other key stakeholders. The committee recommended scrapping the proposed amendments due to concerns over potential fraud and abuse.
According to Speaker Wetang’ula, UFAA had requested a pause in the legislative process to allow for broader amendments to the Unclaimed Financial Assets Act.
“In their submission to the Departmental Committee on Finance and National Planning, the Unclaimed Financial Assets Authority (UFAA) indicated that they were working on comprehensive changes to the main Act. As a result, they requested that the proposed amendments be put on hold for possible inclusion in their broader legislative reforms,” Wetang’ula explained.
The Finance Committee emphasized that the bill’s lack of clear guidelines on third-party designations could create loopholes that bad actors might exploit. There were concerns that without strict regulations, criminals could use the process to transfer illegal funds, making the system vulnerable to fraud.
“Although the bill aimed to simplify and enhance the process of claiming unclaimed assets, the absence of clear rules on third-party designations poses significant legal risks.
“This is especially true in cases where disputes arise due to fraud, coercion, or questions about the claimant’s legal capacity,” the committee noted in its report to Parliament.
Legal and Stakeholder Concerns
Several stakeholders, including the Law Society of Kenya, the Attorney General’s office, and the Institute of Certified Public Accountants, also raised concerns about the bill. They warned that without well-defined regulations, third-party designations could lead to legal battles and misuse of assets.
Additionally, UFAA admitted that they had not adequately consulted the National Treasury before the bill was tabled. This lack of consultation further weakened the bill’s justification, making it difficult to gain support from lawmakers.
Given these serious concerns, Members of Parliament (MPs) rejected the bill outright, leading to its withdrawal.
Bill’s Withdrawal and the State of Unclaimed Assets
As of February 2025, UFAA is holding approximately Ksh86 billion in unclaimed financial assets. These include cash deposits, shares, dividends, and other financial instruments left unclaimed by their rightful owners.
A previous survey conducted by UFAA in October 2021 estimated the total amount of unclaimed financial assets in Kenya at around Ksh241 billion. This suggests that a significant portion of unclaimed wealth remains with financial institutions and other entities, awaiting rightful claimants.
The withdrawal of the bill means that any future changes to the management and disbursement of unclaimed financial assets will have to be part of the broader amendments being prepared by UFAA.
These reforms will likely include stricter guidelines to prevent fraud while ensuring that legitimate claimants can access their assets more efficiently.
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