THE UNCLAIMED FINANCIAL ASSETS (AMENDMENT) BILL, 2024

THE UNCLAIMED FINANCIAL ASSETS (AMENDMENT) BILL, 2024

The Unclaimed Financial Assets Act of 2011 (hereafter referred to as the “Act”) governs the management of unclaimed assets and cash held by the government. Such unclaimed assets encompass both tangible and intangible properties that have not been claimed by their rightful owners. A financial asset is deemed unclaimed when no claims have been made against it, no transactions have been conducted on its behalf, and no orders have been issued concerning the asset within a specified timeframe.

The Unclaimed Financial Assets (Amendment) Bill, 2024 (hereafter referred to as the “Bill”) proposes significant amendments to the Act to enhance the rights of claimants. Specifically, the Bill aims to amend the Act by empowering claimants to designate an alternative recipient for the payment of claims, should the claimant themselves be unavailable. This proposed amendment seeks to modify Section 28(5) of the Act by inserting the words “or such other person as the claimant may designate” immediately following the term “claimant.”

Furthermore, the Bill introduces amendments to Section 45 of the Act. This section previously conferred exclusive rights and privileges to the claimant for receiving the asset. The proposed amendments will allow claimants to designate another individual of their choosing, provided such designation complies with legal requirements.

The primary objective of the Bill is to amend Sections 28 and 45 of the Act to grant claimants the authority to designate another individual to claim for their unclaimed assets on their behalf, thereby enhancing flexibility and ensuring that claimants can exercise their rights more effectively.

Note: The update provided herein is solely for general information and does not amount to any form of legal advice. For any legal advice on debt collection and Unclaimed Financial Assets, reach out through info@knjenga.co.ke

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