Kenyan Financial Institutions Express Concern Regarding Proposed Unclaimed Assets Law
As we’ve mentioned earlier, Kenya is considering adoption of an unclaimed property law that is very similar to the Uniform Unclaimed Property Act. Not everyone is happy about this development. According to an article in The Daily Nation, Kenyan banks and insurance companies are “alarmed” about several aspects of the law, including its potential retroactivity, and provisions allowing the government to sell unclaimed property to the highest bidder after three years.
Also of significant concern to the potential holders is an apparent conflict in Kenyan law that could result in companies continuing to be liable to owners of unclaimed property even after it has been reported and remitted to the government. Although the proposed legislation does provide for indemnification of the holder (as do the U.S. uniform acts) the would-be holders seem to want greater assurance that they will not be subject to double liability.