The National Assembly’s Departmental Committee on Finance and National Planning has suspended the consideration of the Unclaimed Financial Assets (Amendment) Bill, 2023, after the proposed law’s implementing agency failed to clarify to the Committee what the amendment was intended to cure in the parent Act.
The Members expressed concerns that if left unchecked, the proposed amendment was prone to abuse and could pave the way for easy transfer of proceeds of economic crimes.
Appearing before the Kuria Kimani-led Committee for stakeholder engagement on the Bill, the top officials from the Unclaimed Financial Assets Authority led by the Acting Chief Executive Officer, Ms. Caroline Chirchir were taken to task to explain the challenges that led the proposed amendment, by the Committee Members led by the Session Chairperson, Hon. Benjamin Langat (Ainamoi).
“The amendment that this Bill seeks to enact has very serious ramifications. Could you explain to us the challenges that you experienced in the administration of the Fund as the Implementing Agency that has led to this amendment?”, he enquired.
In response, Chirchir told the Committee that though they were in agreement with the proposed amendment, the Authority had not exhaustively concluded discussions with its parent ministry-The Ministry of National Treasury and Economic Planning on the Bill, and sought for more time to conclude deliberations, prompting the lawmakers to read mischief on the matter.
“Hon. Chair, I would only say that this is a government Bill. We have not had enough time to consult on the proposed amendment and we would seek to be allowed more time”, she told the Committee.Unsatisfied, Kesses legislator, CPA Julius Rutto questioned how the Authority was not ceased of the Bill’s objective yet they were expected to implement the proposed law if enacted.
“The Authority is part of government. When you state that this is a government Bill, what do you mean? We need to know who is the originator of the Bill. We shall not allow ourselves to make a law to suit the interests of others”, Rutto asserted.Kitui Rural lawmaker David Mboni noted that lack of enough safeguards in the proposed amendment was a recipe for mischief and cautioned against rushed consideration of the Bill until it is clear what detriment it was meant to address.
“Hon. Chair, we need to be very cautious with this amendment. What safeguards have been put in place to ensure that this provision is not abused? What happens when the designated beneficiary passes on before filing the claim? ”, he asked.Raising the same concerns, Chesumei lawmaker Hon. Paul Biego also sought to know at what point one is anticipated to designate a beneficiary and what happens in the event of the demise of the designated beneficiary.
Members further questioned the Authority on the process of disposing off assets of an untracable beneficiary. They also asked for an explanation on the procedure the Authority follows to prove beyond any reasonable doubt that a next of kin of a deceased or untracable principal cannot be identified before executing sale or transfer of their financial asset.
In response, the Authority’s Corporation Secretary assured the Committee that the Authority had so far not transferred any unclaimed assets in terms of shares and if they were to do so, they would do it within the provisions of the law, and in public interest.
With the Authority unable to own the Bill, Hon. Langat directed that they harmonize their position with the National Treasury before appearing again before the Committee in two-weeks time.
The substantive Chair Hon. Kuria Kimani who joined the meeting later told the Members that he would also seek clarification on the matter from the Sponsor of the Bill.
At the same time, the Members raised issue with the fact that accrued interest earned from the unclaimed assets is not passed on to the beneficiaries upon claim. They hinted that the Committee would review the provisions of the Act to provide that the beneficiaries gain part of that interest upon claim.
𝑨𝒃𝒐𝒖𝒕 𝒕𝒉𝒆 𝑩𝒊𝒍𝒍
The principal object of the Bill is to amend sections 28 and 45 of the Unclaimed Financial Assets Act, No. 40 of 2011, (“the principal Act”) to give a claimant owner the power to designate the payment of a claim to another person.
Sponsored by the Leader of the Majority Party, the Bill was published on 8th March, 2024. It was read for a First time on 23rd April, 2024 and was thereafter committed to the Committee for consideration and tabling of report.
