The National Assembly Majority Leader, Kimani Ichung’wah, has withdrawn a bill seeking to grant owners or claimants of unclaimed financial assets the ability to designate payments to another person.

According to National Assembly Speaker Moses Wetang’ula, Ichung’wah, who sponsored the Unclaimed Financial Assets (Amendment) Bill, requested its withdrawal after it was rejected by the Finance Committee of the National Assembly in December last year.

"I have acceded to the request and hereby direct that the Unclaimed Financial Assets (Amendment) Bill (National Assembly Bill No. 15 of 2024) stands withdrawn forthwith," affirmed Wetang'ula. The bill sought to modify the existing Unclaimed Financial Assets Act of 2011. The primary objective of the amendment was to grant claimants the authority to designate another individual to receive their unclaimed assets on their behalf. 

Specifically, the bill proposed changes to Sections 28 and 45 of the Act, allowing the Unclaimed Financial Assets Authority (UFAA) to release assets to a person designated by the rightful owner if the owner was unavailable. However, this proposal faced significant opposition. The Finance Committee, after reviewing the bill, recommended its deletion due to concerns about potential abuse and fraud. 

A section of Members of Parliament from the majority side during a previous proceeding.

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National Assembly

According to Wetang’ula, the Bill has been withdrawn following a request from the Unclaimed Financial Assets Authority (UFAA) to stay the proceedings. This is to allow room for planned amendments to the principal Act.

“In their submission to the Departmental Committee on Finance and National Planning, the Unclaimed Financial Assets Authority (UFAA) indicated that the authority was in the process of proposing comprehensive amendments to the principal Act. In this regard, the Authority requested the stay of the current proposals for possible inclusion in the broader amendments to be proposed,” stated Speaker Wetang’ula.

The Finance Committee, in its report, highlighted that the absence of explicit provisions on third-party designations could create legal risks, making the process susceptible to exploitation. There were fears that such amendments could facilitate the transfer of proceeds from crimes to individuals, undermining the integrity of the system.

“Whereas the amendments in the Bill seek to simplify and enhance the process of claiming unclaimed financial assets, the absence of explicit provisions on third-party designations creates legal risks for both the authority and claimants.

“This would be especially in cases of disputed designations due to fraud, undue influence, or lack of capacity,” the committee said in its report tabled in the House recently.

Stakeholders, including the Law Society of Kenya, the Attorney General, and the Institute of Certified Public Accountants, echoed these apprehensions. They raised concerns that the proposed changes lacked clear guidelines for third-party designations, which could lead to legal disputes and potential misuse.

Additionally, the Unclaimed Financial Assets Authority (UFAA) acknowledged that it had not fully consulted with the National Treasury regarding the Bill, further complicating its justification. Given these substantial concerns, the Bill was ultimately rejected by the Members of Parliament.

As of February 2025, UFAA is holding approximately Ksh86 billion in unclaimed financial assets. This amount includes cash, shares, dividends, and other financial instruments that have remained unclaimed by their rightful owners.

In October 2021, a baseline survey by UFAA estimated the total unclaimed financial assets in the country at approximately Ksh241 billion.

Departmental Committee on Finance and National Planning chair Kuria Kimani presides over the stakeholder meeting in Parliament on May 28, 2024.

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Parliament of Kenya