Bill seeking to pick unclaimed assets beneficiaries withdrawn

Parliament has withdrawn the Unclaimed Financial Assets (Amendment) Bill of 2024, following a request by the Leader of the Majority, Kimani Ichung’wah.

Speaker of the National Assembly, Moses Wetang’ula, announced the withdrawal after receiving formal correspondence from Ichung’wah, citing the need for a broader review of the legislation.

The Bill, published on March 8, 2024, sought to allow owners or claimants of unclaimed assets to designate payments to third parties.

It had progressed to the second reading—the stage that grants MPs the first opportunity to debate a bill—on November 28, 2024.

The finance committee had earlier rejected the amendment that was being pushed by the state to allow persons with unclaimed assets to assign another person to get the benefits.

The government through Ichung’wah wanted the law changed to allow claimants of assets that are presumed abandoned to designate another individual of their choice to be paid.

Through the Unclaimed Financial Asset (Amendment) Bill, of 2024, the state proposed that the authority handling the assets could hand over the wealth in their custody when claimants are unavailable.

However, according to Wetang’ula, the Unclaimed Financial Assets Authority (UFAA) had informed the Departmental Committee on Finance and National Planning that it was in the process of drafting comprehensive amendments to the principal Act.

As a result, the authority requested a suspension of the current proposals to allow their inclusion in the wider legislative reforms.

“In light of this request and in accordance with Standing Order 140, which allows a member in charge of a Bill to withdraw it at any stage, I have approved the withdrawal of the Unclaimed Financial Assets (Amendment) Bill with immediate effect,” Wetang’ula stated.

The move signals an upcoming overhaul of the Unclaimed Financial Assets framework, with expectations that the UFAA will table more extensive amendments in due course.

The law defines unclaimed assets to include those that have been presumed abandoned and have become unclaimed assets under the Act.

Those that have been transferred to the Unclaimed Assets Authority and those that have been deemed under any other law to be unclaimed assets and payable to UFAA also apply.

Income, dividends or interest can be considered but not lawful charges accruing to the claimant of such assets.

According to data from the Unclaimed Financial Assets Authority (UFAA) possession belonging to Kenyans that are currently lying idle in the coffers stand at Sh86 billion.

The money trickles in from financial institutions such as banks and Saccos, telcos like Safaricom, and the insurance industry.