LAWS OF KENYA

THE UNCLAIMED FINANCIAL ASSETS ACT, 2011 NO. 40 OF 2011

Published by the National Coun il !o" La# $e%o"tin& #ith the Autho"ity o! the Atto"ney'(ene"al
###.)enyala#.o"&

No. 40

Unclaimed Financial Assets

2011

THE UNCLAIMED FINANCIAL ASSETS ACT, 2011 No. 40 of 2011

Date of Assent* 2nd December, 2011 Commencement* 16th December, 2011 A$$AN(E+EN, OF SEC,-ONS Section PA$, 1.P$EL-+-NA$Y 1.Sho"t title. 2.-nte"%"etation. PA$, --. /E,E$+-NA,-ON OF 0NCLA-+E/ ASSE,S 1.0n lai2ed assets &ene"al "e3ui"e2ents. 4.,"a4elle"s he3ues5 2oney o"de"s5 et . 6.Che3ues5 d"a!ts5 o" si2ila" inst"u2ents. 7./e2and5 sa4in&s o" 2atu"ed ti2e de%osits. 8.Li!e o" endo#2ent insu"an e %oli y o" annuity ont"a t. 9./e2utuali:ation o! insu"an e o2%any5 et . ;./e%osit !o" utility se"4i es. 10./ete"2ination o" o"de" by ou"t o! "e!und by holde". 11.O#ne"shi% inte"est5 et . 12. Assets !"o2 dissol4ed business entity. 11.Assets held in !idu ia"y a%a ity. 14.(i!t e"ti!i ate o" "edit 2e2o. 16.0n%aid #a&es. 17.Assets held in sa!e de%osit bo< o" "e%osito"y. 18.Assets held by ou"t o" (o4e"n2ent de%a"t2ent. 19.Cabinet Se "eta"y to %"es "ibe !u"the" lasses o! assets5 et . PA$, ---./EAL-N( W-,= 0NCLA-+E/ ASSE,S5 /0,-ES OF =OL/E$S AN/ CE$,A-N POWE$S OF ,=E A0,=O$-,Y5 E,C 1;./uty to lo ate and noti!y o#ne"s o! assets. 20.$e%o"t o! %"esu2ed abandoned assets> duties o! assets holde". 21.Autho"ity 2ay "e3uest !o" in!o"2ation. 22.Pay2ent o" deli4e"y o! abandoned assets to Autho"ity. 21.Autho"ity to assu2e ustody> "i&hts o! assets holde"5 et . 24. Autho"ised dedu tions by the Autho"ity. 26./i4idends5 inte"est o" othe" in o2e. 27.Sale o! un lai2ed assets. 28.A4ailability o! in!o"2ation to the %ubli . 29.Clai2s on assets.

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2;.A tion to establish lai2 in ou"t. 10.E<%i"ation o! ti2e %e"iod s%e i!ied by ont"a t5 statute5 o" ou"t o"de". 11.$e%o"t o! un lai2ed assets> e<a2ination o! "e o"ds5 et . 12.+aintenan e o! "e o"ds> "e3ui"ed ti2e %e"iods. 11.Failu"e to %ay o" deli4e" assets and %enalties. 14. Assets dee2ed un lai2ed be!o"e this A t a2e into !o" e. 16./uty to lo ate and noti!y o#ne"s o! assets. 17.0n lai2ed assets database. 18.$es%onsibility o! "e&ulato"y autho"ities. 19.A ess to in!o"2ation and "etention o! "e o"ds by the Autho"ity. PA$, -?.,=E 0NCLA-+E/ F-NANC-AL ASSE,S A0,=O$-,Y 1;.Establish2ent o! the 0n lai2ed Finan ial Assets Autho"ity. 40.Co2%osition o! the @oa"d. 41.ObAe ts and !un tions o! the Autho"ity. 42.A%%oint2ent o! hie! e<e uti4e o!!i e"5 et . 41.E<e2%tion !"o2 sta2% duty. PA$, ?.,=E 0NCLA-+E/ F-NANC-AL ASSE,S ,$0S, F0N/ 44.Establish2ent o! the ,"ust Fund. 46.Pay2ent o! lai2s. 47.A ounts and audit. 48.Penalties %ayable to the Fund. 49.-n4est2ent o! !unds. PA$, ?-.+-SCELLANEO0S 4;.Autho"ity to a%%oint a&ents5 et . 60.Autho"ity 2ay institute %"o eedin&s in ou"t. 61.Po#e"s o! the Autho"ity to ente"5 et . 62.O!!en es and %enalty. 61.$e&ulations.

No. 40

Unclaimed Financial Assets

2011

THE UNCLAIMED FINANCIAL ASSETS ACT, 2011 No. 40 of 2011

AN ACT of Parliamen o !ro"i#e for $e re!or in% an# #ealin% &i $ 'n(laime# finan(ial a))e )* o e) a+li)$ $e Un(laime# Finan(ial A))e ) A' $ori , an# $e Un(laime# Finan(ial A))e ) Tr') F'n# an# for (onne( e# !'r!o)e) ENACTED by the Pa"lia2ent o! Kenya5 as !ollo#s. PA-T I.P-ELIMINA-/ S$or i le. 1. ,his A t 2ay be ited as the 0n lai2ed Finan ial Assets A t5 2011. In er!re a ion. 2. -n this A t5 unless the onte<t othe"#ise "e3ui"es. Ba%%a"ent o#ne"C 2eans the %e"son #hose na2e a%%ea"s on the "e o"ds o! the holde" as the %e"son entitled to assets held5 issued5 o" o#in& by the holde"> DassetsD 2eans !inan ial assets to #hi h this A t a%%lies and in ludes any in o2e5 di4idend o" inte"est the"eon> DAutho"ityD 2eans the 0n lai2ed Assets Autho"ity established by se tion 1;> Dban)D has the 2eanin& assi&ned to it in the @an)in& A t Ca%. 499> D@oa"dD 2eans the boa"d o! the Autho"ity> DCabinet Se "eta"yD 2eans the Cabinet Se "eta"y !o" the ti2e bein& "es%onsible !o" 2atte"s "elatin& to !inan e> D hie! e<e uti4e o!!i e"D 2eans the hie! e<e uti4e o!!i e" o! the Autho"ity a%%ointed unde" se tion 42> D!inan ial institutionD has the 2eanin& assi&ned to it in the @an)in& A t Ca%. 499>

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DFundD 2eans the 0n lai2ed Assets ,"ust Fund established by se tion 44> Dholde"D 2eans any entity #ho5 in "es%e t to assets to #hi h this A t a%%lies5 holds su h assets on behal! o! an o#ne"5 is in %ossession o! assets belon&in& to anothe"5 is indebted to anothe" on an obli&ation o" is a t"ustee> Dinsu"an e o2%anyD has the 2eanin& assi&ned to it in the -nsu"an e A t Ca%. 498> Dlast )no#n add"essD 2eans a des "i%tion o! the lo ation o! the a%%a"ent o#ne" su!!i ient !o" the %u"%ose o! the deli4e"y o! 2ail> Do#ne"D 2eans a %e"son ha4in& a le&al o" e3uitable inte"est in assets subAe t to this A t and in ludes the le&al "e%"esentati4e o! the o#ne"> Dun lai2ed assetsD 2eans assets that. EaF ha4e been %"esu2ed abandoned and ha4e un lai2ed assets unde" the %"o4isions o! this A t> be o2e

EbF ha4e been t"ans!e""ed to the Autho"ity as un lai2ed assets unde" this A t> E F ha4e been dee2ed unde" any othe" la# to be un lai2ed assets and %ayable to the Autho"ity5 and in ludes all in o2e5 di4idend o" inte"est the"eon but e< ludes any la#!ul ha"&es the"eon> and DutilityD 2eans a %e"son #ho a""ies on5 the business o! t"ans2ission5 sale5 deli4e"y5 o" su%%ly o! ele t"i ity5 #ate" o" othe" utility se"4i es. PA-T II.DETE-MINATI0N 0F UNCLAIMED ASSETS Un(laime# a))e ) %eneral re1'iremen ). 3. 0nless othe"#ise %"o4ided in this A t o" by any othe" la#5 assets shall be subAe t to the ustody o! the Autho"ity as un lai2ed assets5 i! the onditions "aisin& a %"esu2%tion o! abandon2ent unde" se tions 4 to 19 a"e satis!ied and one o" 2o"e o! the !ollo#in& "e3ui"e2ents a"e 2et. EaF the "e o"ds o! the holde" do not "e!le t the identity o! the %e"son entitled to the assets>

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Unclaimed Financial Assets

2011

EbF the holde" has not %"e4iously %aid o" deli4e"ed the assets to the a%%a"ent o#ne" o" othe" %e"son entitled to the assets> E F the last )no#n add"ess5 as sho#n on the "e o"ds o! the holde"5 o! the a%%a"ent o#ne" is in a ount"y that does not %"o4ide by la# !o" the es heat o" ustodial ta)in& o! the assets o" its es heat o" un lai2ed assets la# is not a%%li able to the assets and the holde" is do2i iled in Kenya. Tra"eller) ($e1'e), mone, or#er), e (. 4. E1F SubAe t to subse tion E4F5 any su2 %ayable in Kenya on a t"a4elle"s he3ue that is outstandin& !o" 2o"e than t#o yea"s a!te" its issuan e is %"esu2ed abandoned unless the o#ne"5 #ithin the t#o yea"s5 has o22uni ated in #"itin& #ith the issue" on e"nin& it o" othe"#ise indi ated an inte"est as e4iden ed by a "e o"d %"e%a"ed by the issue". E2F SubAe t to subse tion E4F5 any su2 %ayable in Kenya on a 2oney o"de" o" si2ila" #"itten inst"u2ent that is outstandin& !o" 2o"e than t#o yea"s a!te" its issuan e is %"esu2ed abandoned unless the o#ne"5 #ithin t#o yea"s5 has o22uni ated in #"itin& #ith the issue" on e"nin& it o" othe"#ise indi ated an inte"est as e4iden ed by a "e o"d %"e%a"ed by the issue". E1F A holde" shall not dedu t !"o2 the a2ount o! a t"a4elle"s he3ue o" 2oney o"de" any ha"&e i2%osed by "eason o! the !ailu"e to %"esent the inst"u2ent !o" %ay2ent unless. EaF the issue" "e&ula"ly i2%oses su h ha"&es and does not "e&ula"ly "e4e"se o" othe"#ise an el the2> and EbF the"e is an en!o" eable #"itten ont"a t bet#een the issue" and the o#ne" o! the inst"u2ent unde" #hi h the issue" 2ay i2%ose a ha"&e. E4F A su2 %ayable in Kenya on a t"a4elle"s he3ue5 2oney o"de"5 o" si2ila" #"itten inst"u2ent 2ay not be subAe ted to the ustody o! the Autho"ity as un lai2ed assets unless one o" 2o"e o! the !ollo#in& "e3ui"e2ents a"e 2et. EaF the "e o"ds o! the issue" sho# that the t"a4elle"s he3ue5 2oney o"de" o" si2ila" #"itten inst"u2ent #as %u" hased in Kenya> EbF the issue" has its %"in i%al %la e o! business in Kenya and the "e o"ds o! the issue" do not sho# the ount"y in #hi h the t"a4elle"s he3ue5 2oney o"de"5 o" si2ila" #"itten inst"u2ent #as %u" hased> E F the issue" has its %"in i%al %la e o! business in Kenya.

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C$e1'e), #raf ) or )imilar in) r'men ). 2. E1F Any su2 %ayable in Kenya on a he3ue5 d"a!t5 o" si2ila" inst"u2ent5 on #hi h a ban) o" !inan ial institution is di"e tly liable5 in ludin& a ban)e"Gs he3ue5 #hi h is outstandin& !o" 2o"e than t#o yea"s a!te" it #as %ayable o" a!te" its issuan e i! %ayable on de2and5 is %"esu2ed abandoned5 unless the o#ne"5 #ithin the i22ediately %"e edin& t#o yea"s5 has o22uni ated in #"itin& #ith the ban) o" !inan ial institution on e"nin& it o" othe"#ise indi ated an inte"est as e4iden ed by a "e o"d %"e%a"ed by the ban) o" !inan ial institution. E2F A holde" 2ay not dedu t !"o2 the a2ount o! any inst"u2ent subAe t to this se tion any ha"&e i2%osed by "eason o! the !ailu"e to %"esent the inst"u2ent !o" %ay2ent unless. EaF the issue" "e&ula"ly i2%oses su h ha"&es and does not "e&ula"ly "e4e"se o" othe"#ise an el the2> and EbF the"e is an en!o" eable #"itten ont"a t bet#een the issue" and the o#ne" o! the inst"u2ent unde" #hi h the issue" 2ay i2%ose a ha"&e. Deman#, )a"in%) or ma 're# ime #e!o)i . 3. E1F Any de2and5 sa4in&s5 o" 2atu"ed ti2e de%osit #ith a ban) o" !inan ial institution5 in ludin& a de%osit that is auto2ati ally "ene#able5 and any !unds %aid to#a"d the %u" hase o! a sha"e5 a 2utual in4est2ent e"ti!i ate5 o" any othe" inte"est in a ban) o" !inan ial institution is %"esu2ed abandoned unless the o#ne"5 #ithin the i22ediately %"e edin& !i4e yea"s5 has 2et one o" 2o"e o! the !ollo#in& "e3ui"e2ents. EaF in the ase o! a de%osit5 in "eased o" de "eased its a2ount o" %"esented the %assboo) o" othe" si2ila" e4iden e o! the de%osit !o" the "editin& o! inte"est> EbF o22uni ated5 in #"itin&5 #ith the ban) o" !inan ial institution on e"nin& the assets> E F othe"#ise indi ated an inte"est in the assets as e4iden ed by a "e o"d %"e%a"ed by the ban) o" !inan ial institution> EdF had anothe" "elationshi% #ith the ban) o" !inan ial institution on e"nin& #hi h the o#ne" has 2et one o" 2o"e o! the !ollo#in& "e3ui"e2ents. EiF o22uni ated5 in #"itin&5 #ith the ban) o" !inan ial institution>

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2011

EiiF othe"#ise indi ated an inte"est as e4iden ed by a 2e2o"andu2 o" othe" "e o"d on !ile %"e%a"ed by the ban) o" !inan ial institution and unless the ban) o" !inan ial institution o22uni ates in #"itin& #ith the o#ne" #ith "e&a"d to the assets that #ould othe"#ise be abandoned unde" this subse tion at the add"ess to #hi h o22uni ations "e&a"din& the othe" "elationshi% "e&ula"ly a"e sent. E2F A holde" 2ay not i2%ose #ith "es%e t to assets des "ibed in subse tion E1F any ha"&e due to do"2an y o" ina ti4ity o" ease %ay2ent o! inte"est unless. EaF the holde" "e&ula"ly i2%oses su h ha"&es o" eases %ay2ent o! inte"est and does not "e&ula"ly "e4e"se o" othe"#ise an el the2 o" "et"oa ti4ely "edit inte"est #ith "es%e t to the assets> and EbF the"e is an en!o" eable #"itten ont"a t bet#een the holde" and the o#ne" o! the assets %"o4idin& that the holde" 2ay i2%ose a ha"&e o" ease %ay2ent o! inte"est. E1F Any assets des "ibed in subse tion E1F that a"e auto2ati ally "ene#able a"e 2atu"ed !o" %u"%oses o! subse tion E1F se4en yea"s a!te" the e<%i"ation o! its initial ti2e %e"iod5 but in the ase o! any "ene#al to #hi h the o#ne" onsents at o" about the ti2e o! "ene#al by o22uni atin& in #"itin& #ith the ban) o" !inan ial institution o" othe"#ise indi atin& onsent as e4iden ed by a "e o"d %"e%a"ed by the holde"5 the assets is 2atu"ed u%on the e<%i"ation o! the last ti2e %e"iod !o" #hi h onsent #as &i4en. E4F Whe"e5 at the ti2e %"o4ided !o" deli4e"y to the Autho"ity unde" se tion 225 a %enalty o" !o"!eitu"e in the %ay2ent o! inte"est #ould "esult !"o2 the deli4e"y o! the assets5 the ti2e !o" deli4e"y shall be e<tended until the ti2e #hen no %enalty o" !o"!eitu"e #ould "esult. Life or en#o&men in)'ran(e !oli(, or ann'i , (on ra( . 4. E1F Funds held o" o#in& unde" any li!e o" endo#2ent insu"an e %oli y o" annuity ont"a t that has 2atu"ed o" te"2inated a"e %"esu2ed abandoned i! un lai2ed !o" 2o"e than t#o yea"s a!te" the !unds be a2e due and %ayable as established !"o2 the "e o"ds o! the insu"an e o2%any holdin& o" o#in& the !unds. E2F Whe"e a %e"son othe" than the insu"ed o" annuitant is entitled to the !unds "e!e""ed to in subse tion E1F and the add"ess o! the %e"son is not )no#n to the insu"an e o2%any o" it is un e"tain !"o2 the "e o"ds o! the insu"an e o2%any #ho is entitled to the !unds5 it shall

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be %"esu2ed that the last )no#n add"ess o! the %e"son entitled to the !unds is the sa2e as the last )no#n add"ess o! the insu"ed o" annuitant a o"din& to the "e o"ds o! the insu"an e o2%any. E1F Fo" %u"%oses o! this A t5 a li!e o" endo#2ent insu"an e %oli y o" annuity ont"a t not 2atu"ed by a tual %"oo! o! the death o! the insu"ed o" annuitant a o"din& to the "e o"ds o! the insu"an e o2%any shall be dee2ed 2atu"ed and the %"o eeds due and %ayable i! one o" 2o"e o! the !ollo#in& "e3ui"e2ents a"e 2et. EaF the insu"an e has died> o2%any )no#s that the insu"ed o" annuitant

EbF the insu"ed has attained5 o" #ould ha4e attained i! he #e"e li4in&5 the li2itin& a&e unde" the 2o"tality table on #hi h the "ese"4e is based> EcF the %oli y #as in !o" e atG the ti2e the insu"ed attained5 o" #ould ha4e attained5 the li2itin& a&e> and neithe" the insu"ed no" any othe" %e"son a%%ea"in& to ha4e an inte"est in the %oli y #ithin the %"e edin& t#o yea"s5 a o"din& to the "e o"ds o! the insu"an e o2%any5 has assi&ned5 "eadAusted5 o" %aid %"e2iu2s on the %oli y5 subAe ted the %oli y to a loan5 o""es%onded in #"itin& #ith the5 insu"an e o2%any on e"nin& the %oli y5 o" othe"#ise indi ated an inte"est as e4iden ed by a "e o"d %"e%a"ed by the insu"an e o2%any. E4F Fo" %u"%oses o! this A t5 the a%%li ation o! an auto2ati %"e2iu2 loan %"o4ision o" othe" non'!o"!eitu"e %"o4ision ontained in an insu"an e %oli y shall not %"e4ent a %oli y !"o2 bein& 2atu"ed o" te"2inated unde" this se tion i! the insu"ed has died o" the insu"ed o" the bene!i ia"y o! the %oli y othe"#ise has be o2e entitled to the %"o eeds o! the %oli y be!o"e the de%letion o! the ash su""ende" 4alue o! the %oli y by the a%%li ation o! those %"o4isions. E6F Whe"e any la# o" the te"2s o! the li!e insu"an e %oli y "e3ui"e the insu"an e o2%any to &i4e noti e to the insu"ed o" o#ne" that an auto2ati %"e2iu2 loan %"o4ision o" othe" non'!o"!eitu"e %"o4ision has been e<e" ised and the noti e5 &i4en to an insu"ed o" o#ne" #hose last )no#n add"ess a o"din& to the "e o"ds o! the insu"an e o2%any is in Kenya5 is undeli4e"able5 the insu"an e o2%any shall 2a)e a "easonable sea" h to as e"tain the %oli yholde"Gs o""e t add"ess to #hi h the noti e shall be deli4e"ed. E7F Not#ithstandin& any othe" la#5 #he"e the insu"an e o2%any lea"ns o! the death o! the insu"ed o" annuitant and the bene!i ia"y has not o22uni ated #ith the insu"an e o2%any #ithin si<ty days a!te" the death o! the insu"ed o" annuitant5 the insu"an e o2%any shall ta)e "easonable ste%s to %ay the %"o eeds to the bene!i ia"y.

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E8F E4e"y han&e o! bene!i ia"y !o"2 issued by an insu"an e o2%any unde" any li!e o" endo#2ent insu"an e %oli y o" annuity ont"a t to an insu"ed o" o#ne" #ho is a "esident o! Kenya shall "e3uest all o! the !ollo#in& in!o"2ation. EaF the na2e o! ea h bene!i ia"y5 o" i! a lass o! bene!i ia"ies is na2ed5 the na2e o! ea h u""ent bene!i ia"y in the lass> EbF the add"ess o! ea h bene!i ia"y> E F "elationshi% o! ea h bene!i ia"y to the insu"ed> EdF a o%y o! at least one identi!i ation do u2ent o! ea h bene!i ia"y5 in ludin& a national identity a"d o" %ass%o"t. Dem' 'ali7a ion of in)'ran(e (om!an,, e (. 5. E1F Assets dist"ibutable in the ou"se o! the de2utuali:ation o! an insu"an e o2%any shall be %"esu2ed abandoned #he"e. EaF in the ase o! any !unds5 t#o yea"s a!te" the date o! the de2utuali:ation5 the !unds "e2ain un lai2ed and the o#ne" has not othe"#ise o22uni ated #ith the holde" o" its a&ent "e&a"din& the assets as e4iden ed by a "e o"d #ith the holde" o" its a&ent. EbF in the ase o! any sto )5 t#o yea"s a!te" the date o! the de2utuali:ation5 inst"u2ents o" state2ents "e!le tin& the dist"ibution a"e eithe" 2ailed to the o#ne" and "etu"ned as undeli4e"able o" not 2ailed to the o#ne" be ause o! an add"ess on the boo)s and "e o"ds o! the holde" that is )no#n to be in o""e t and the o#ne" has not othe"#ise o22uni ated #ith the holde" o" its a&ent "e&a"din& the assets as e4iden ed by a 2e2o"andu2 o" othe" "e o"d on !ile #ith the holde" o" its a&ent. E2F A holde" o! un lai2ed assets des "ibed in s se tion E1F shall !ile an initial one'ti2e "e%o"t o! un lai2ed de2utuali:ation %"o eeds not late" than'si< 2onths a!te" this A t o2es into !o" e. E1F -n this se tion5 Dde2utuali:ationD 2eans the %ay2ent o! onside"ation !o" the "elin3uish2ent o! a 2utual 2e2be"shi% inte"est in a 2utual insu"an e o2%any5 #hethe" o" not unde"ta)en in onAun tion #ith a %lan o! de2utuali:ation5 li3uidation5 2e"&e"5 o" othe" !o"2 o! "eo"&ani:ation.

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De!o)i for ' ili , )er"i(e). 6. A de%osit 2ade by a subs "ibe" #ith a utility to se u"e %"o4ision o! se"4i es o" any su2 %aid in ad4an e !o" utility se"4i es to be !u"nished5 that "e2ains un lai2ed by the o#ne" !o" 2o"e than t#o yea"s a!te" te"2ination o! the se"4i es !o" #hi h the de%osit o" ad4an e %ay2ent #as 2ade shall be %"esu2ed abandoned. De ermina ion or or#er +, (o'r of ref'n# +, $ol#er. 10. E< e%t to the e<tent othe"#ise o"de"ed by a ou"t5 any su2 that a holde" has been o"de"ed to "e!und by a ou"t that "e2ains un lai2ed by the o#ne" !o" 2o"e than t#o yea"s a!te" it be a2e %ayable in a o"dan e #ith the !inal dete"2ination %"o4idin& !o" the "e!und5 #hethe" o" not the !inal dete"2ination "e3ui"es any %e"son entitled to a "e!und to 2a)e a lai2 !o" the "e!und5 is %"esu2ed abandoned. 0&ner)$i! in ere) , e (. 11. E1F Any sto )5 sha"e5 o" othe" intan&ible o#ne"shi% inte"est in a business entity5 the e<isten e o! #hi h is e4iden ed by "e o"ds a4ailable to the entity5 is %"esu2ed abandoned and5 #ith "es%e t to the inte"est5 the entity is the holde"5 i! both o! the !ollo#in& a%%ly. EaF the inte"est in the entity is o#ned by a %e"son #ho !o" 2o"e than th"ee yea"s has not lai2ed a di4idend5 dist"ibution5 o" othe" su2 %ayable as a "esult o! the inte"est5 o" #ho has not o22uni ated #ith the entity "e&a"din& the inte"est o" a di4idend5 dist"ibution5 o" othe" su2 %ayable as the "esult o! the inte"est5 as e4iden ed by a 2e2o"andu2 o" othe" "e o"d on !ile #ith the entity %"e%a"ed by the entity> EbF the entity does not )no# the #he"eabouts o! the o#ne" at the end o! the th"ee yea" %e"iod. E2F ,he "etu"n o! o!!i ial sha"eholde" noti!i ations o" o22uni ations as undeli4e"able is e4iden e that the entity does not )no# the lo ation o! the o#ne". E1F ,his se tion a%%lies to both the unde"lyin& sto )5 sha"e5 o" othe" intan&ible o#ne"shi% inte"est o! an o#ne"5 and any sto )5 sha"e5 o" othe" intan&ible o#ne"shi% inte"est o! #hi h the business entity is in %ossession o! the e"ti!i ate o" othe" e4iden e o" indi ation o! o#ne"shi%5 and to the sto )5 sha"e5 o" othe" o#ne"shi% inte"est o! di4idend and non'di4idend %ayin& business entities #hethe" o" not the inte"est is "e%"esented by a e"ti!i ate. E4F At the ti2e an inte"est is %"esu2ed abandoned unde" this se tion5 any di4idend5 dist"ibution5 o" othe" su2 then held !o" o" o#in&

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to the o#ne" as a "esult o! the inte"est5 and not %"e4iously %"esu2ed abandoned5 shall be %"esu2ed abandoned. A))e ) from #i))ol"e# +')ine)) en i ,. 12. Assets dist"ibutable in the ou"se o! dissolution o! a business entity that "e2ain un lai2ed by the o#ne" !o" 2o"e than t#o yea"s a!te" the date s%e i!ied !o" !inal dist"ibution is %"esu2ed abandoned. A))e ) $el# in fi#'(iar, (a!a(i ,. 13. E1F Assets held in a !idu ia"y a%a ity !o" the bene!it o! anothe" %e"son a"e %"esu2ed abandoned unless the o#ne"5 #ithin t#o yea"s a!te" they ha4e be o2e %ayable o" dist"ibutable5 has in "eased o" de "eased5 the %"in i%al5 a e%ted any %ay2ent in "es%e t the"eo!5 o22uni ated on e"nin& the assets5 o" othe"#ise indi ated any othe" inte"est as e4iden ed by a "e o"d %"e%a"ed by the !idu ia"y. E2F Fo" the %u"%oses o! this A t5 a %e"son #ho is dee2ed to hold assets in a !idu ia"y a%a ity !o" a business entity alone is the holde" o! the assets only inso!a" as the inte"est o! the business entity in the assets is on e"ned5 and the business entity is the holde" o! the assets inso!a" as the inte"est o! any othe" %e"son in the assets is on e"ned. 8if (er ifi(a e or (re#i memo. 14. E1F E< e%t as %"o4ided in subse tion E4F5 a &i!t e"ti!i ate5 &i!t a"d5 o" "edit 2e2o is %"esu2ed abandoned i! eithe" o! the !ollo#in& a%%ly. EaF the e"ti!i ate5 a"d5 o" 2e2o is not lai2ed o" used !o" a %e"iod o! !i4e yea"s a!te" be o2in& %ayable o" dist"ibutable> EbF the e"ti!i ate5 a"d5 o" 2e2o #as used o" lai2ed one o" 2o"e ti2es #ithout e<haustin& its !ull 4alue5 but subse3uently #as not lai2ed o" used !o" an uninte""u%ted %e"iod o! !i4e yea"s. E2F Fo" %u"%oses o! subse tion E1F5 a &i!t e"ti!i ate o" &i!t a"d is onside"ed to ha4e been lai2ed o" used i! the"e is any t"ansa tion %"o essin& a ti4ity on the &i!t e"ti!i ate o" &i!t a"d in ludin&5 but not li2ited to5 "edee2in&5 "e!undin&5 o" addin& 4alue to the e"ti!i ate o" a"d. E1F A ti4ity initiated by the issue" o! the e"ti!i ate o" a"d5 in ludin&5 but not li2ited to5 assessin& ina ti4ity !ees o" si2ila" se"4i e !ees5 does not onstitute t"ansa tion %"o essin& a ti4ity !o" %u"%oses o! subse tion E2F. E4F -n the ase o! a &i!t e"ti!i ate o" &i!t a"d5 the o#ne" is %"esu2ed to be a "e i%ient o! the &i!t e"ti!i ate o" &i!t a"d5 and the

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a2ount %"esu2ed abandoned is the %"i e %aid by the %u" hase" !o"'the &i!t e"ti!i ate o" &i!t a"d5 less the total o! any %u" hases o" !ees assessed a G!ist the e"ti!i ate o" a"d. E6F -n the ase o! a "edit 2e2o5 the a2ount %"esu2ed abandoned is the a2ount "edited to the "e i%ient o! the 2e2o. E7F ,his A t does not a%%ly to a &i!t e"ti!i ate that is issued !o" "etail &oods o" se"4i es by a %e"son en&a&ed in the "etail sale o! &oods o" se"4i es. Un!ai# &a%e). 12. 0n%aid #a&es in ludin& #a&es "e%"esented by un%"esented %ay"oll he3ues5 allo#an es5 bonuses and te"2inal bene!its o#in& in the o"dina"y ou"se5 o! the holde"Gs business that "e2ain un lai2ed by the o#ne" !o" 2o"e than one yea" a!te" be o2in& %ayable a"e %"esu2ed abandoned. A))e ) $el# in )afe #e!o)i +o9 or re!o)i or,. 13. Assets that by thei" natu"e 2ay la#!ully be sold5 held in a sa!e de%osit bo< o" any othe" sa!e)ee%in& "e%osito"y in Kenya in the o"dina"y ou"se o! the holde"Gs business5 and %"o eeds "esultin& !"o2 the sale o! the assets5 that "e2ain un lai2ed by the o#ne" !o" 2o"e than t#o yea"s a!te" the lease o" "ental %e"iod on the bo< o" othe" "e%osito"y has e<%i"ed5 a"e %"esu2ed abandoned. A))e ) $el# +, (o'r or 8o"ernmen #e!ar men . 14. Assets held !o" the o#ne" by a ou"t o" a (o4e"n2ent de%a"t2ent that "e2ains un lai2ed by the o#ne" !o" 2o"e than one yea" a!te" be o2in& %ayable o" dist"ibutable is %"esu2ed abandoned. Ca+ine Se(re ar, o !re)(ri+e f'r $er (la))e) of a))e ) e (. 15. E1F SubAe t to this A t5 the Cabinet Se "eta"y 2ay by o"de" in the (a:ette %"es "ibe su h !u"the" lass o! assets and su h !u"the" lass o! holde"s to be assets and holde"s "es%e ti4ely to #hi h this A t a%%lies. E2F ,he o"de" "e!e""ed to subse tion E1F shall in lude su h othe" "e3ui"e2ents as the Cabinet Se "eta"y 2ay dee2 ne essa"y5 in ludin& the %e"iod a!te" #hi h assets "e!e""ed to in subse tion E1F 2ay be %"esu2ed abandoned and dee2ed un lai2ed assets.

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PA-T III.DEALIN8 :ITH UNCLAIMED ASSETS, DUTIES 0F H0LDE-S AND CE-TAIN P0:E-S 0F THE AUTH0-IT/, ETC. D' , o lo(a e an# no if, o&ner) of a))e ). 16. E1F A holde" o! assets to #hi h this A t a%%lies shall 2a)e all "easonable e!!o"ts to lo ate the o#ne" and to noti!y the o#ne" about those assets. E2F ,he "easonable e!!o"ts "e3ui"ed unde" subse tion E1F shall be 2ade in su h 2anne" and #ithin su h %e"iod as the Autho"ity 2ay %"es "ibe. E1F Without %"eAudi e to the &ene"ality o! subse tions E1F and E2F5 #ithin a %e"iod not less than si<ty days and not 2o"e than one yea" be!o"e !ilin& the "e%o"t "e3ui"ed by se tion 205 the holde" in %ossession o! assets %"esu2ed abandoned and subAe t to the Autho"ityGs ustody as un lai2ed assets unde" this A t shall send #"itten noti e to the a%%a"ent o#ne" at his last )no#n add"ess in!o"2in& hi2 that the holde" is in %ossession o! assets subAe t to this A t #he"e the holde" has in its "e o"ds an add"ess o! the a%%a"ent o#ne". -e!or of !re)'me# a+an#one# a))e )* #' ie) of a))e ) $ol#er. 20. E1F A %e"son holdin& assets %"esu2ed abandoned and subAe t to the ustody o! the Autho"ity as un lai2ed assets unde" this A t shall 2a)e a "e%o"t on e"nin& the assets to the Autho"ity as %"o4ided in this se tion. E2F ,he "e%o"t "e!e""ed to in subse tion E1F shall be e"ti!ied by the hie! e<e uti4e o!!i e" o! the holde" and shall in lude all o! the !ollo#in& . EaF the na2e5 i! )no#n5 and last )no#n add"ess5 i! any5 o! ea h %e"son a%%ea"in& !"o2 the "e o"ds o! the holde" to be the o#ne" o! assets %"esu2ed abandoned unde" this A t> EbF in the ase o! un lai2ed assets held o" o#in& unde" any li!e o" endo#2ent insu"an e %oli y o" annuity ont"a t5 the !ull na2e and last )no#n add"ess o! the insu"ed o" annuitant and o! the bene!i ia"y a o"din& to the "e o"ds o! the insu"an e o2%any holdin& o" o#in& the assets> E F in the ase o! the ontents o! a sa!e de%osit bo< o" othe" sa!e)ee%in& "e%osito"y o" o! othe" tan&ible assets5 a des "i%tion o! the assets and the %la e #he"e they a"e held and 2ay be ins%e ted by the Autho"ity and any a2ounts o#in& to the holde">

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EdF the natu"e and identi!yin& nu2be"5 i! any5 o" des "i%tion o! the assets and the a2ount a%%ea"in& !"o2 the "e o"ds to be due> EeF the date the assets be a2e %ayable5 de2andable5 o" "etu"nable5 and the date o! the last t"ansa tion #ith the a%%a"ent o#ne" #ith "es%e t to the assets> E!F othe" in!o"2ation the Autho"ity 2ay la#!ully "e3ui"e. E1F Whe"e the %e"son holdin& assets %"esu2ed abandoned and subAe t to the Autho"ityGs ustody as un lai2ed assets unde" this A t is a su esso" to othe" %e"sons #ho %"e4iously held the assets !o" the a%%a"ent o#ne"5 o" the holde" has han&ed its na2e #hile holdin& the assets5 the holde" shall !ile #ith the "e%o"t all )no#n na2es5 add"esses and any othe" %a"ti ula"s o! ea h %"e4ious holde" o! the assets. E4F E< e%t as othe"#ise %"o4ided in this se tion5 the "e%o"t "e!e""ed to in subse tion E1F shall be !iled on o" be!o"e the !i"st day o! No4e2be" o! ea h yea" !o" the t#el4e'2onth %e"iod endin& on the i22ediately %"e edin& thi"tieth day o! Hune. E6F ,he Autho"ity 2ay e<tend the !ilin& date %"o4ided !o" in subse tion E4F !o" u% to si<ty days a!te" the deadline i! an esti2ated %ay2ent is %aid on o" be!o"e the deadline !o" the t#el4e'2onth %e"iod endin& on the i22ediately %"e edin& thi"tieth o! Hune. E7F A "e3uest !o" e<tension o! ti2e to !ile the "e%o"t shall not be dee2ed a "e3uest !o" an e<tension o! ti2e to "e2it %ay2ents. E8F ,he Autho"ity shall dete"2ine ho# %ay2ents a"e to be "e2itted to it by a holde" unde" this A t. A' $ori , ma, re1'e) for informa ion. 21. Fo" the %u"%oses o! this A t5 the Autho"ity 2ay "e3uest a %e"son #ho the Autho"ity "easonably belie4es is a holde" o! assets to %"o4ide su h in!o"2ation to the Autho"ity as the Autho"ity 2ay "e3ui"e5 #ithin su h ti2e o" at su h inte"4als as 2ay be s%e i!ied in the "e3uest. Pa,men or #eli"er, of a+an#one# a))e ) o A' $ori ,. 22. A %e"son #ho is "e3ui"ed to !ile a "e%o"t unde" se tion 20 shall at the ti2e o! !ilin& the "e%o"t %ay o" deli4e" to5 o" hold to the o"de" o! the Autho"ity all abandoned assets that a"e "e3ui"ed to be "e%o"ted unde" that se tion o" any balan e o#in& i! an esti2ated %ay2ent #as ea"lie" 2ade to the Autho"ity. esti2ated

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A' $ori , o a))'me (') o#,* ri%$ ) of a))e ) $ol#er, e (. 23. E1F 0%on the %ay2ent o" deli4e"y o! assets to the Autho"ity5 the Autho"ity shall assu2e ustody and "es%onsibility !o" the sa!e)ee%in& o! the assets. E2F A %e"son #ho %ays o" deli4e"s assets to the Autho"ity in &ood !aith shall be "elie4ed o! all liability to the e<tent o! the 4alue o! the assets %aid o" deli4e"ed !o" any lai2 then e<istin& o" #hi h 2ay a"ise o" be 2ade in "es%e t to the assets a!te" the %ay2ent o" deli4e"y to the Autho"ity. E1F Whe"e the holde" %ays o" deli4e"s assets to the Autho"ity in &ood !aith and anothe" %e"son lai2s the assets !"o2 the holde" o" anothe" ount"y lai2s the 2oney o" assets unde" its la#s "elatin& to es heat o" abandoned o" un lai2ed assets5 the Autho"ity5 u%on #"itten noti e o! the lai25 shall de!end the holde" a&ainst the lai2 and inde2ni!y the holde" a&ainst any liability on the lai2. E4F Fo" the %u"%oses o! this se tion5 D&ood !aithD 2eans. EaF that %ay2ent o" deli4e"y #as 2ade in a "easonable atte2%t to o2%ly #ith this A t> EbF that the %e"son deli4e"in& the assets #as not a !idu ia"y then in b"ea h o! t"ust in "es%e t to the assets and had a "easonable basis !o" belie4in&5 based on the !a ts then )no#n to hi25 that the assets #as abandoned !o" the %u"%oses o! this A t> and E F that the"e is no indi ation that the "e o"ds unde" #hi h the deli4e"y #as 2ade did not 2eet "easonable o22e" ial standa"ds o! %"a ti e in the indust"y. E6F Assets "e2o4ed !"o2 a sa!e de%osit bo< o" othe" sa!e)ee%in& "e%osito"y shall be "e ei4ed by the Autho"ity subAe t to the holde"Gs "i&ht unde" this subse tion to be "ei2bu"sed !o" the a tual ost o! the o%enin& and to any 4alid lien o" ont"a t %"o4idin& !o" the holde" to be "ei2bu"sed !o" un%aid "ent o" sto"a&e ha"&es. E7F ,he Autho"ity shall "ei2bu"se o" %ay the holde" out o! the %"o eeds "e2ainin& a!te" dedu tin& the Autho"ityGs sellin& ost o! an asset unde" this A t. A' $ori)e# #e#'( ion) +, $e A' $ori ,. 24. E1F @e!o"e 2a)in& any de%osit to the "edit o! the Fund5 the Autho"ity 2ay dedu t any o! the !ollo#in&. EaF osts in onne tion #ith the sale o! abandoned assets>

2011

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No. 40 onne tion #ith any

14

EbF osts o! 2ailin& and %ubli ation in abandoned assets> E F "easonable se"4i e ha"&es>

EdF osts in u""ed in e<a2inin& "e o"ds o! holde"s o! assets and in olle tin& the assets !"o2 those holde"s. E2F ,he Autho"ity shall ensu"e that the osts and ha"&es dedu ted %u"suant to subse tion E1F a"e "easonable and in a o"dan e #ith the best 2a")et 4alue a4ailable. E1F Not#ithstandin& subse tion E2F5 the ha"&es dedu ted unde" subse tion E1F E F shall not e< eed one %e" ent o! the &"oss 4alue o! the asset in 3uestion. Di"i#en#), in ere) or o $er in(ome. 22. Whe"e assets othe" than 2oney is deli4e"ed to the Autho"ity unde" this A t5 the o#ne" shall be entitled to "e ei4e !"o2 the Autho"ity any di4idends5 inte"est5 o" othe" in o2e "eali:ed o" a "uin& on the assets at o" be!o"e li3uidation o" on4e"sion o! the assets into 2oney. Sale of 'n(laime# a))e ). 23. E1F E< e%t as %"o4ided in this se tion5 the Autho"ity5 not late" than th"ee yea"s a!te" the "e ei%t o! the abandoned assets "e!e""ed to in se tion 265 shall sell su h assets5 subAe t to a "ese"4e %"i e5 to the hi&hest bidde" at a %ubli au tion. E2F Any sale held unde" this se tion shall be %"e eded by at least one %ubli ation o! noti e5 at least th"ee #ee)s in ad4an e o! sale5 in at least one ne#s%a%e" o! national i" ulation. E1F Se u"ities listed on a sto ) e< han&e shall be sold by the Autho"ity at %"i es %"e4ailin& at the ti2e o! sale on the e< han&e. E4F Se u"ities not listed on a sto ) e< han&e 2ay be sold o4e" the ounte" at %"i es %"e4ailin& at5 the ti2e o! sale o" by any su h othe" 2ethod as the Autho"ity 2ay onside" a%%"o%"iate. E6F 0nless the Autho"ity onside"s it to be in the best inte"est o! the Fund to do othe"#ise5 all se u"ities %"esu2ed abandoned unde" this A t and deli4e"ed to the Autho"ity shall be sold #ithin one yea" o! the "e ei%t o! the se u"ities. E7F ,he %u" hase" o! assets at a sale ondu ted by the Autho"ity unde" this A t shall ta)e the assets !"ee o! all lai2s o! the o#ne" o" %"e4ious holde" o! the assets and o! all %e"sons lai2in& th"ou&h o" unde" the o#ne" o" %"e4ious holde".

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E8F ,he Autho"ity shall e<e ute all do u2ents ne essa"y to o2%lete the t"ans!e" o! o#ne"shi% to the %u" hase". A"aila+ili , of informa ion o $e !'+li(. 24. ,he Autho"ity shall5 u%on %ay2ent o! su h ins%e tion !ee as the Autho"ity 2ay !"o2 ti2e to ti2e dete"2ine> 2a)e a4ailable !o" %ubli ins%e tion at all business hou"s5 only the na2e o! the o#ne" o" a%%a"ent o#ne" and a &ene"al des "i%tion o! the assets deli4e"ed to it unde" this A t. Claim) on a))e ). 25. E1F A %e"son lai2in& an inte"est in any assets %aid o" deli4e"ed to the Autho"ity unde" this A t5 2ay !ile #ith the Autho"ity a lai2 on su h !o"2 as 2ay be %"es "ibed !o" that %u"%ose by the Autho"ity. E2F ,he Autho"ity shall onside" ea h lai2 "e!e""ed to subse tion E1F #ithin ninety days a!te" it is !iled and shall &i4e #"itten noti e to the lai2ant o! its de ision. E1F ,he noti e unde" subse tion E2F 2ay be &i4en by 2ailin& it to the last add"ess5 i! any5 stated in the lai2 as the add"ess to #hi h noti es a"e to be sent. E4F Whe"e no add"ess !o" noti es is stated in the lai25 the noti e 2ay be 2ailed to the last add"ess5 i! any5 o! the lai2ant as stated in the lai2. E6F Whe"e a lai2 is allo#ed5 the Autho"ity shall %ay o4e" o" deli4e" to the lai2ant the assets o" the a2ount the Autho"ity a tually "e ei4ed o" the net %"o eeds i! it has been sold by the Autho"ity. A( ion o e) a+li)$ (laim in (o'r . 26. E1F A %e"son #ho is a&&"ie4ed by a de ision o! the Autho"ity o" #hose lai2 has not been a ted u%on #ithin ninety days a!te" its !ilin& 2ay b"in& an a tion in ou"t a&ainst the Autho"ity. E2F ,he a tion shall be b"ou&ht #ithin ninety days a!te" the de ision o! the Autho"ity o" #ithin one hund"ed and ei&hty days a!te" the !ilin& o! the lai2 #he"e the Autho"ity has !ailed to A t on a lai2. E9!ira ion of ime !erio# )!e(ifie# +, (on ra( , ) a ' e of (o'r or#er. 30. ,he e<%i"ation5 be!o"e o" a!te" the o22en e2ent o! this A t5 o! any %e"iod o! ti2e s%e i!ied by ont"a t5 statute5 o" ou"t o"de"5

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Unclaimed Financial Assets

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du"in& #hi h a lai2 !o" assets an be 2ade o" du"in& #hi h an a tion o" %"o eedin& 2ay be o22en ed o" en!o" ed to obtain %ay2ent o! a lai2G !o" 2oney o" to "e o4e" assets5 shall not %"e4ent the assets !"o2 bein& %"esu2ed abandoned o" a!!e t any duty to !ile a "e%o"t o" to %ay o" deli4e" abandoned assets to the Autho"ity as "e3ui"ed by this A t and su h assets shall be deli4e"ed to the Autho"ity and dealt #ith as un lai2ed assets unde" this A t. -e!or of 'n(laime# a))e )* e9amina ion of re(or#), e (. 31. E1F ,he Autho"ity shall ha4e %o#e"s to "e3ui"e a %e"son #ho has not !iled a "e%o"t as "e3ui"ed by se tion 20 o" a %e"son #ho the Autho"ity belie4es has !iled an in o2%lete5 o" !alse "e%o"t5 to !ile a e"ti!ied "e%o"t in a !o"2 s%e i!ied by the Autho"ity. E2F ,he "e%o"t unde" se tion E1F shall state #hethe" the %e"son is holdin& any un lai2ed assets "e%o"table o" deli4e"able unde" this A t5 des "ibe un lai2ed assets not %"e4iously "e%o"ted o" as to #hi h the Autho"ity has 2ade in3ui"y5 and s%e i!i ally identi!y and state the a2ounts o! assets that 2ay be in issue. E1F ,he Autho"ity shall ha4e %o#e"s to5 at "easonable ti2es and u%on "easonable noti e5 e<a2ine the "e o"ds o! a %e"son to dete"2ine #hethe" the %e"son has o2%lied #ith this A t. E4F ,he Autho"ity shall ha4e %o#e"s to ondu t the e<a2ination "e!e""ed to in subse tion E1F #hethe" o" not the %e"son belie4es he o" she is not in %ossession o! any assets "e%o"table o" deli4e"able unde" this A t. E6F ,he Autho"ity shall ha4e %o#e"s to ente" into ont"a t #ith any othe" %e"son to ondu t the e<a2ination unde" this se tion on behal! o! the Autho"ity. E7F Whe"e an e<a2ination o! the "e o"ds o! a %e"son "esults in the dis losu"e o! assets "e%o"table and deli4e"able unde" this A t5 the Autho"ity shall ha4e %o#e"s to assess the ost o! the e<a2ination a&ainst the holde" at su h daily "ate as the Cabinet Se "eta"y 2ay dete"2ine %"o4ided that the ha"&es shall not e< eed the 4alue o! the assets !ound to be "e%o"table and deli4e"able. E8F ,he ost o! e<a2ination 2ade %u"suant to subse tion E1F shall be i2%osed only a&ainst the holde". E9F Whe"e a!te" this A t o2es into !o" e5 a holde" !ails to 2aintain the "e o"ds "e3ui"ed by se tion 11 and the "e o"ds o! the holde" a4ailable !o" the %e"iods subAe t to this A t a"e insu!!i ient to %e"2it the %"e%a"ation o! a "e%o"t5 the Autho"ity shall ha4e %o#e"s to "e3ui"e the

20 No. 40

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holde" to "e%o"t and %ay an a2ount as 2ay "easonably be esti2ated !"o2 any a4ailable "e o"ds. Main enan(e of re(or#)* re1'ire# ime !erio#). 32. E1F A holde" "e3ui"ed to !ile a "e%o"t unde" se tion 205 as to any assets !o" #hi h it has obtained the last )no#n add"ess o! the o#ne"5 shall 2aintain a "e o"d o! the na2e and last )no#n add"ess o! the o#ne" !o" ten yea"s a!te" the assets be o2es "e%o"table5 e< e%t to the e<tent that a sho"te" ti2e is %"o4ided in subse tion E2F o" by the Autho"ity. E2F An entity that sells in Kenya its t"a4elle"s he3ues5 2oney o"de"s5 o" othe" si2ila" #"itten inst"u2ents on #hi h the business entity is di"e tly liable5 o" that %"o4ides those inst"u2ents to othe"s !o" sale in Kenya5 shall 2aintain a "e o"d o! those inst"u2ents #hile they "e2ain outstandin&5 indi atin& the ount"y and date o! issue !o" th"ee yea"s a!te" the date the assets a"e "e%o"table. Fail're o !a, or #eli"er a))e ) an# !enal ie). 33. E1F A %e"son #ho !ails to %ay o" deli4e" assets #ithin the ti2e %"es "ibed by this A t shall %ay to the Autho"ity inte"est at the u""ent 2onthly "ate o! one %e" enta&e %oint abo4e the adAusted %"i2e "ate %e" annu2 %e" 2onth on the assets o" 4alue o! the assets !"o2 the date the assets should ha4e been %aid o" deli4e"ed. E2F ,he adAusted %"i2e "ate shall be based on the Cent"al @an) o! Kenya a4e"a&e "ate du"in& the t#el4e'2onth %e"iod endin& on thi"tieth day o! Se%te2be". E1F ,he "esultin& u""ent 2onthly inte"est "ate based on the t#el4e'2onth %e"iod endin& thi"tieth day o! Se%te2be" shall be o2e e!!e ti4e on the !i"st day o! Hanua"y o! the !ollo#in& yea". E4F A %e"son #ho #ill!ully !ails to "ende" any "e%o"t o" %e"!o"2 othe" duties "e3ui"ed unde" this A t shall be liable to %ay %enalty o! se4en thousand shillin&s but not 2o"e than !i!ty thousand shillin&s !o" ea h day the "e%o"t is #ithheld o" the duty is not %e"!o"2ed. E6F A %e"son #ho #ill!ully !ails to %ay o" deli4e" assets to the Autho"ity as "e3ui"ed unde" this A t shall be liable to %ay a %enalty e3ual to t#enty'!i4e %e" ent o! the 4alue o! the assets that should ha4e been %aid o" deli4e"ed. E7F A %enalty %ayable unde" subse tions E1F5 E4F and E6F o! this se tion shall be "e o4e"able as i4il debt su22a"ily.

2011

Unclaimed Financial Assets

No. 40

21

A))e ) #eeme# 'n(laime# +efore $i) A( (ame in o for(e. 34. E1F ,his A t shall5 on o2in& into !o" e5 a%%ly to all assets that #ould5 but !o" the absen e o! this A t5 be dee2ed un lai2ed assets unde" the %"o4isions o! this A t as i! this A t had been in !o" e at that ea"lie" date on #hi h the assets #ould ha4e be o2e un lai2ed assets unde" this A t. E2F ,he initial "e%o"t !iled unde" this A t !o" assets that a"e subAe t to this A t shall in lude all assets that #ould ha4e been %"esu2ed abandoned be!o"e this A t a2e into !o" e as i! this A t had been in e!!e t du"in& that %e"iod and su h assets shall be dealt #ith unde" the %"o4isions o! this A t. D' , o lo(a e an# no if, o&ner) of a))e ). 32. E1F ,he Autho"ity shall 2a)e "easonable e!!o"ts to lo ate the o#ne" o! assets in the ustody o! the Autho"ity and noti!y hi2 in a o"dan e #ith this A t. E2F -n noti!yin& an o#ne" as "e3ui"ed by subse tion E1F5 the Autho"ity shall dete"2ine the 2ost ost e!!e ti4e 2anne" o! 2a)in& the noti!i ation de%endin& on the "es%e ti4e 4alue o! the assets on e"ned. Un(laime# a))e ) #a a+a)e. 33. ,he Autho"ity shall. EaF 2aintain an ele t"oni o" othe" database o! all un lai2ed assets sub2itted to it unde" this A t> EbF in lude in the database the %"es "ibed %a"ti ula"s !o" ea h un lai2ed asset> E F 2a)e the database a4ailable to the %ubli 5 subAe t to any "est"i tions i2%osed !o" %u"%oses o! %"ote tin& the %"i4a y o! o#ne"s. -e)!on)i+ili , of re%'la or, a' $ori ie). 34. E1F Any "e&ulato"y autho"ity "es%onsible !o" the su%e"4ision o! a holde" shall assist the Autho"ity in the en!o" e2ent o! the %"o4isions o! this A t and &ene"ally ensu"e that the obAe ti4es o! this A t a"e a hie4ed. E2F SubAe t to se tion 15 #he"e the"e is on!li t bet#een the %"o4isions o! this A t and the %"o4isions o! any othe" la# on any 2atte" on e"nin& un lai2ed assets5 the %"o4isions o! this A t shall %"e4ail.

22 No. 40

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2011

A((e)) o informa ion an# re en ion of re(or#) +, $e A' $ori ,. 35. E1F SubAe t to any othe" #"itten la# to the ont"a"y5 the Autho"ity shall ha4e the "i&ht to any in!o"2ation that is in the ustody o" ont"ol o! a %ubli body i! that in!o"2ation an "easonably be e<%e ted to assist the Autho"ity in lo atin& the o#ne"5 o" dete"2inin& the o""e t o#ne"5 o! an un lai2ed asset !o" the %u"%oses o! this A t. E2F A %ubli body that has ustody o" ont"ol o! in!o"2ation to #hi h the Autho"ity is entitled unde" subse tion E1F shall dis lose that in!o"2ation to the Autho"ity on "e3uest. E1F Ea h %ubli body shall 2eet the standa"ds5 as 2ay be set by "e&ulation5 #ith "es%e t to. EaF the olle tion and "e o"din& o! in!o"2ation assets that be o2e un lai2ed assets> and EbF "etention o! "e o"ds ontainin& that in!o"2ation. PA-T I;.THE UNCLAIMED FINANCIAL ASSETS AUTH0-IT/ E) a+li)$men of $e Un(laime# Finan(ial A))e ) A' $ori ,. 36. E1F ,he"e shall be an autho"ity to be )no#n as the 0n lai2ed Finan ial Assets Autho"ity. E2F ,he Autho"ity is a body o"%o"ate #ith %e"%etual su ession and a o22on seal and shall5 in its o"%o"ate na2e5 be a%able o!. EaF suin& and bein& sued> EbF ta)in&5 %u" hasin& o" othe"#ise a 3ui"in&5 holdin&5 ha"&in& o" dis%osin& o! 2o4able and i22o4able %"o%e"ty> E F bo""o#in& 2oney o" 2a)in& in4est2ents> EdF ente"in& into ont"a ts> and EeF doin& o" %e"!o"2in& all othe" a ts o" thin&s !o" the %"o%e" %e"!o"2an e o! its !un tions unde" this A t #hi h 2ay la#!ully be done o" %e"!o"2ed by a body o"%o"ate. E1F ,he Autho"ity shall %e"!o"2 the !un tions assi&ned to the Autho"ity unde" this A t. Com!o)i ion of $e <oar#. 40. E1F ,he @oa"d o! the Autho"ity shall o2%"ise. on e"nin& any

2011

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No. 40

23

EaF !i4e %e"sons not bein& %ubli o!!i e"s a%%ointed by the Cabinet Se "eta"y o! #ho2. EiF one shall be a%%ointed by 4i"tue o! his )no#led&e and e<%e"ien e in 2atte"s "elatin& to ban)in& and in4est2ent> EiiF one shall be a%%ointed by 4i"tue o! his )no#led&e and e<%e"ien e in 2atte"s "elatin& to insu"an e> EiiiF one shall be a%%ointed by 4i"tue o! his )no#led&e and e<%e"ien e in 2atte"s "elatin& to a ountin& and auditin&5 la#5 o"%o"ate o" business 2ana&e2ent and5 Ei4F one shall be a%%ointed by 4i"tue o! his )no#led&e in 2atte"s "elatin& to un lai2ed assets E4F one shall be a%%ointed to "e%"esent the inte"est o! onsu2e"s o! !inan ial se"4i es> EbF the %e"2anent se "eta"y to the ,"easu"y> E F the hie! e<e uti4e o!!i e". E2F ,he 2e2be"s o! the @oa"d shall5 at thei" !i"st 2eetin&5 ele t a hai"%e"son !"o2 a2on&st the 2e2be"s o! the @oa"d a%%ointed unde" subse tion E1F EaF. E1F No %e"son shall be a%%ointed as a 2e2be" o! the @oa"d unde" subse tion E1F EaF i! su h %e"son' EaF has been on4i ted o! an o!!en e by a ou"t o! o2%etent Au"isdi tion and senten ed to i2%"ison2ent !o" a te"2 o! si< 2onths o" 2o"e> EbF is adAud&ed ban)"u%t o" has ente"ed into a s he2e o" a""an&e2ent #ith his "edito"s> o" o2%osition

E F is dis3uali!ied unde" the %"o4isions o! any othe" #"itten la# !"o2 a%%oint2ent as su h. E4F A 2e2be" o! the @oa"d shall hold o!!i e !o" a %e"iod o! th"ee yea"s5 but shall be eli&ible !o" "e'a%%oint2ent. E6F A 2e2be" o! the @oa"d unde" subse tion E1FEaF 2ay. EaF at any ti2e "esi&n !"o2 o!!i e by noti e in #"itin& to the Cabinet Se "eta"y> o" EbF be "e2o4ed !"o2 o!!i e by the Cabinet Se "eta"y i! the

24 No. 40 2e2be".

Unclaimed Financial Assets

2011

EiF has been absent !"o2 th"ee onse uti4e 2eetin&s o! the @oa"d #ithout Austi!iable ause o" the %e"2ission o! the hai"%e"son> EiiF is adAud&ed ban)"u%t o" ente"s into a o2%osition s he2e o" a""an&e2ent #ith his "edito"s> o" EiiiF is on4i ted o! an o!!en e in4ol4in& dishonesty o" !"aud> Ei4F subAe t to %a"a&"a%h EiiiF5 is on4i ted o! a "i2inal o!!en e and senten ed to i2%"ison2ent !o" a te"2 o! si< 2onths o" 2o"e> E4F is in a%a itated by %"olon&ed %hysi al o" 2ental illness> o" E4iF is othe"#ise unable o" un!it to dis ha"&e his !un tions. E7F ,he 3uo"u2 !o" any 2eetin& o! the @oa"d shall be th"ee. E8F All 3uestions %"o%osed at a 2eetin& o! the @oa"d shall be de ided by a 2aAo"ity o! the 4otes o! the 2e2be"s %"esent and 4otin&5 and in the e4ent o! e3uality o! 4otes5 the hai"%e"son o" the %e"son %"esidin& shall ha4e a astin& 4ote in addition to the delibe"ati4e 4ote. E9F ,he @oa"d 2ay a t not#ithstandin& any 4a an y a2on& the 2e2be"shi%. E;F SubAe t to this A t5 the @oa"d 2ay 2a)e "ules !o" "e&ulatin& the %"o edu"e at its 2eetin&s. E10F ,he seal o! the Autho"ity shall be authenti ated by the si&natu"e o! the hai"%e"son o! the @oa"d and the Chie! E<e uti4e O!!i e" and any do u2ent not "e3ui"ed by la# to be unde" seal and all de isions o! the @oa"d 2ay be authenti ated by the hai"%e"son and the Chie! E<e uti4e O!!i e"* P"o4ided that the @oa"d shall5 in the absen e o! eithe" the hai"%e"son o" the Chie! E<e uti4e O!!i e"5 in any %a"ti ula" ase o" !o" any %a"ti ula" 2atte"5 no2inate one o! thei" o#n5 in the %a"ti ula" ase o" 2atte" in "es%e t o! #hi h he is no2inated5 authenti ate the seal o! the @oa"d on behal! o! eithe" the hai"%e"son o" the Chie! E<e uti4e O!!i e". 0+=e( ) an# f'n( ion) of $e <oar#. 41. ,he obAe ts and !un tions o! the Autho"ity shall be to. EaF en!o" e5 and &ene"ally ad2iniste"5 the %"o4isions o! this A t>

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Unclaimed Financial Assets

No. 40

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EbF a t as the ,"ustee to the Fund in a o"dan e #ith Pa"t ? o! this A t> E F "e ei4e all %ay2ents "e3ui"ed by this A t to be 2ade to the Fund> EdF 2a)e %ay2ents out o! the Fund to the "i&ht!ul o#ne"s in a o"dan e #ith the %"o4isions o! this A t> EeF 2ana&e and in4est the !unds o! the Autho"ity> E!F ad4ise the Cabinet Se "eta"y on the national %oli y to be !ollo#ed #ith "e&a"d to un lai2ed assets and to i2%le2ent all &o4e"n2ent %oli ies "elatin& to it> and E&F %e"!o"2 su h othe" !un tions as a"e on!e""ed on it by this A t o" by any othe" #"itten la#. A!!oin men of $e ($ief e9e(' i"e offi(er, e (. 42. E1F ,he @oa"d shall5 th"ou&h a o2%etiti4e %"o ess5 a%%oint a hie! e<e uti4e o!!i e" #ho shall hold o!!i e on su h te"2s and onditions o! se"4i e as 2ay be s%e i!ied in the inst"u2ent o! a%%oint2ent. E2F ,he Chie! E<e uti4e O!!i e" shall be the 2ana&in& t"ustee o! the Fund. E1F ,he Chie! E<e uti4e O!!i e" shall be "es%onsible to the @oa"d !o" the 2ana&e2ent o! the day to day a!!ai"s o! the Autho"ity. E4F ,he @oa"d shall ha4e %o#e" to a%%oint on su h te"2s and onditions o! se"4i e as it 2ay dete"2ine5 su h othe" o!!i e"s5 se"4ants and a&ents o! the Fund as 2ay be ne essa"y !o" the e!!i ient ad2inist"ation o! the Fund and the @oa"d shall e<e" ise dis i%lina"y ont"ol o4e" su h o!!i e"s5 se"4ants and a&ents. E6F ,he @oa"d 2ay5 subAe t to su h Conditions as the @oa"d 2ay thin) !it5 by di"e tions in #"itin&5 dele&ate any o! its %o#e"s unde" subse tion E4F to any one o" 2o"e o! the 2e2be"s o! the @oa"d o" to the Chie! E<e uti4e O!!i e" o" othe" o!!i e" o! the Fund. E9em! ion from ) am! #' ,. 43. No duty shall be ha"&eable unde" the Sta2% /uty A t Ca%. 490 in "es%e t o! any inst"u2ent e<e uted by any %e"son on behal! o! o" in !a4ou" o! the Fund o" in "es%e t o! the %ay2ent o! any bene!it o" the "e!undin& o! any a2ount unde" this A t in any ase #he"e5 but !o" this e<e2%tion5 the Fund o" any %e"son a tin& on behal! o! the Autho"ity.

23 No. 40

Unclaimed Financial Assets

2011

PA-T ;.THE UNCLAIMED FINANCIAL ASSETS T-UST FUND E) a+li)$men of $e Tr') F'n#. 44. E1F ,he"e shall be a Fund )no#n as the 0n lai2ed Assets ,"ust Fund #hi h shall 4est in5 and be o%e"ated and 2ana&ed by5 the Autho"ity. E2F ,he"e shall be %aid. EaF into the Fund5 all 2oneys that be o2e o" a"e dee2ed to be un lai2ed assets and othe" %ay2ents "e3ui"ed by this A t o" by any othe" #"itten la# to be %aid into the Fund> and EbF out o! the Fund. EiF %ay2ent due and %ayable to o#ne"s out o! the Fund unde" the A t> EiiF su h a2ounts as 2ay be a%%"o4ed by the Cabinet Se "eta"y to de!"ay osts asso iated #ith the ad2inist"ation o! the Autho"ity and %e"!o"2an e o! its !un tions unde" this A t. Pa,men of (laim). 42. E1F Whe"e the Autho"ity is satis!ied that a %e"son is the o#ne" o! all o" %a"t o! the assets that be a2e un lai2ed assets and %aid into the Fund5 the Autho"ity 2ay %ay out o! the Fund to the o#ne" an a2ount e3ual to the 4alue o! that assets o" %a"t o! that assets as the ase 2ay be. E2F No inte"est o" othe" ea"nin& a "ues o" is %ayable to an o#ne" in "es%e t o! the %e"iod a!te" assets be o2es un lai2ed assets and deli4e"ed to the Autho"ity unde" this A t. E1F A %ay2ent unde" this se tion to an o#ne" shall dis ha"&e the Autho"ity !"o2 liability to the o#ne" in "es%e t o! the assets that be a2e un lai2ed assets and #e"e a tually %aid into the Fund. A((o'n ) an# a'#i . 43. E1F ,he Autho"ity shall ause to be )e%t all %"o%e" boo)s o! a ount and othe" boo)s and "e o"ds in "elation to the Fund and to all the unde"ta)in&s5 !unds5 in4est2ents5 a ti4ities and %"o%e"ty o! the Fund as the Autho"ity 2ay dee2 ne essa"y. E2F Within a %e"iod o! th"ee 2onths a!te" the end o! ea h !inan ial yea"5 the Autho"ity shall %"e%a"e5 si&n and t"ans2it to the

2011

Unclaimed Financial Assets

No. 40

24

Audito"'(ene"al o" to an audito" a%%ointed unde" subse tion E1F. EaF a balan e sheet sho#in& in detail the assets and liabilities o! the Fund> EbF a state2ent o! in o2e and e<%enditu"e o! the Fund> and E F su h othe" state2ents o! a ount as the Autho"ity 2ay dee2 ne essa"y. E1F ,he a ounts o! the Fund shall be audited and "e%o"ted u%on in a o"dan e #ith the Publi Audit A t No. 12 o! 20015 by the Audito"' (ene"al5 o" by an audito" a%%ointed by the Autho"ity unde" the autho"ity o! the Audito"'(ene"al. E4F ,he Autho"ity shall ause the audited a ounts o! the Fund to be %ublished in the (a:ette and in at least t#o ne#s%a%e"s #ith national i" ulation. Penal ie) !a,a+le o $e F'n#. 44. E1F ,he Cou"t be!o"e #ho2 any %e"son is on4i ted o! an o!!en e unde" this A t 2ay5 #ithout %"eAudi e to any i4il "e2edy5 o"de" su h %e"son to %ay to the Fund the a2ount o! any othe" su25 to&ethe" #ith any inte"est o" %enalty the"eon5 !ound to be due !"o2 su h %e"son to the Fund5 and any su2 so o"de"ed shall be "e o4e"able as a !ine and %aid into the Fund. E2F All su2s due to the Fund shall be "e o4e"able as debts due to the Autho"ity and #ithout %"eAudi e to any othe" "e2edy shall be a i4il debt "e o4e"able su22a"ily. In"e) men of f'n#). 45. E1F All 2oneys in the Fund #hi h a"e not !o" the ti2e bein& "e3ui"ed to be a%%lied !o" the %u"%oses o! the Fund shall be in4ested in su h in4est2ents5 bein& in4est2ents in #hi h any t"ust !und Eo" %a"t the"eo!F is %e"2itted by the ,"ustee A t Ca%. 178 to be in4ested5 as 2ay be dete"2ined by the Autho"ity #ith the a%%"o4al o! the Cabinet Se "eta"y. E2F All in4est2ents 2ade unde" this se tion shall be held !o" and on behal! o! the Fund in the na2e o! the Autho"ity.

25 No. 40

Unclaimed Financial Assets

2011

PA-T ;I.MISCELLANE0US A' $ori , o a!!oin a%en ), e (. 46. ,he Autho"ity 2ay a%%oint o" li ense su h a&ents and se"4i e %"o4ide"s as it 2ay dee2 ne essa"y !o" the a""yin& out o! the obAe ts o! this A t and 2ay in that "es%e t and #ithout %"eAudi e to the !o"e&oin& a%%oint ustodians5 !und 2ana&e"s and "euni!i ation a&ents to assist in the "euni!i ation o! the assets #ith the o#ne"s. A' $ori , ma, in) i ' e !ro(ee#in%) in (o'r . 20. All "i2inal and i4il %"o eedin&s unde" this A t 2ay5 #ithout %"eAudi e to any othe" %o#e" in that behal!5 be instituted by Autho"ity and5 #he"e the %"o eedin&s a"e instituted o" b"ou&ht in a ou"t5 an o!!i e" o! the Autho"ity autho"ised by the @oa"d in that behal! 2ay %"ose ute o" ondu t the %"o eedin&s. Po&er) of $e A' $ori , o en er, e (. 21. E1F ,he Autho"ity shall5 !o" the %u"%ose o! as e"tainin& #hethe" this A t is bein& o" has been o2%lied #ith by any %e"son5 ha4e %o#e" to ente" any %"e2ises o" %la e at all "easonable ti2es. E2F An institution liable to ins%e tion unde" this A t5 and any e2%loyee5 shall !u"nish the Autho"ity all su h in!o"2ation and %"odu e !o" ins%e tion all su h do u2ents as the Autho"ity 2ay "easonably "e3ui"e !o" the %u"%ose o! %e"!o"2in& its !un tions unde" this A t. 0ffen(e) an# !enal ,. 22. E1F A holde" #ho. EaF !ails to 2aintain a "e o"d "e3ui"ed unde" this A t o" the $e&ulations 2ade the"eunde"> EbF in a "e o"d "e3ui"ed o" sub2itted5 o" in in!o"2ation %"o4ided5 unde" this A t o" the $e&ulations5 2a)es a state2ent that. EiF is !alse o" 2isleadin& #ith "es%e t to a 2ate"ial %a"ti ula"> o" EiiF o2its to state a 2ate"ial !a t5 the o2ission o! #hi h 2a)es the state2ent !alse o" 2isleadin&5 o22its an o!!en e. E2F A %e"son is not &uilty o! an o!!en e unde" subse tion E1F EbF i! the %e"son did not )no# that the state2ent #as !alse o" 2isleadin& and5 #ith the e<e" ise o! "easonable dili&en e5 ould not ha4e )no#n that the state2ent #as !alse o" 2isleadin&.

2011

Unclaimed Financial Assets

No. 40

26

E1F Whe"e a body o"%o"ate o22its an o!!en e unde" this se tion5 an e2%loyee5 o!!i e"5 di"e to" o" a&ent o! the o"%o"ation #ho autho"ises5 %e"2its o" a 3uies es in the o22ission o! the o!!en e o22its an o!!en e. E4F Subse tion E1F shall a%%ly #hethe" o" not the body o"%o"ate is %"ose uted !o" the o!!en e. E6F A %e"son #ho #il!ully "e!uses a!te" #"itten de2and by the Autho"ity to %ay o" deli4e" assets to the Autho"ity as "e3ui"ed unde" this A t o22its an o!!en e. E7F A %e"son Con4i ted o! an o!!en e unde" this se tion shall be liable to a !ine o! not less than !i!ty thousand shillin&s and not 2o"e than one 2illion shillin&s o" to i2%"ison2ent !o" not 2o"e than one yea"5 o" to both. -e%'la ion). 23. ,he Cabinet Se "eta"y 2ay5 on the "e o22endation o! the @oa"d5 2a)e "e&ulations ne essa"y to a""y out the %"o4isions o! this A t.