Millions of Kenyans may have unclaimed assets without knowing it, as billions of shillings remain uncollected in bank accounts, insurance policies, shares, pensions and other financial instruments.
Many people only discover they are entitled to money after searching the records of the Unclaimed Financial Assets Authority (UFAA) or following the death of a relative.
The Unclaimed Financial Assets Authority is mandated to receive, safeguard and reunite unclaimed financial assets with their rightful owners.
Under the Unclaimed Financial Assets Act, assets are deemed unclaimed when they remain inactive for a prescribed period, and the owner cannot be traced or has not come forward to claim them.
What Counts as Unclaimed Assets?
The law covers a wide range of financial assets that remain abandoned or unclaimed for a specified period.
Dormant Bank Accounts
One of the most common types of unclaimed assets is money held in dormant bank accounts.
Under the Act, demand, savings, and matured time deposit accounts may be considered abandoned if the owner has not made transactions, communicated with the institution, or otherwise shown interest in the account for five years.
Unclaimed Dividends and Shares
Many Kenyans own shares in listed companies but fail to collect dividends paid on those investments.
Also Read: The Most Common Phone Scams Affecting Kenyans
The Act provides that shares and other ownership interests may be deemed abandoned when an owner has not claimed dividends or communicated with the company for more than three years, and the company cannot establish the owner’s whereabouts.
Uncashed Cheques
Money represented by cheques, drafts and similar banking instruments that remain uncashed for more than two years may qualify as unclaimed financial assets.
This includes payments issued by employers, companies, and financial institutions that were never collected by their intended recipients.
Insurance Benefits
Insurance proceeds that remain uncollected by policyholders or beneficiaries are another major category.
The Act provides that funds under life insurance, endowment policies, and annuity contracts that remain unclaimed for more than two years after becoming payable may be presumed abandoned.
Utility Deposits
Refundable deposits paid to utility providers, such as electricity and water companies, may become unclaimed assets if they are not collected within two years after the termination of the service for which the deposit was made.
Retirement and Pension Benefits
Retirement benefits are among the assets commonly left unclaimed.
In some cases, former employees fail to claim their benefits after leaving employment, while in others, beneficiaries remain unaware that they are entitled to funds left by deceased relatives.
Unpaid Wages and Terminal Benefits
The law also covers unpaid wages, allowances, bonuses and terminal benefits.
Also Read: High Court Declares Indefinite Life Imprisonment Unconstitutional
Such payments are presumed abandoned if they remain unclaimed for more than one year after they become payable.
Money Orders and Travelers’ Cheques
Money orders, travelers’ checks, and similar instruments may also become unclaimed financial assets if they remain outstanding for more than two years without any indication of interest from the owner.
Court Deposits
Money held by courts, including unclaimed bail and bond deposits, may be treated as abandoned if it remains unclaimed for more than one year after it becomes payable or distributable.
Safe Deposit Boxes
Assets held in safe deposit boxes and other safekeeping repositories may also be classified as unclaimed if they remain uncollected for more than two years after the lease or rental period expires.
Assets From Dissolved Companies
When a company is dissolved and its assets are distributed to owners or shareholders, any portion remaining unclaimed for more than 2 years after the specified distribution date may be treated as unclaimed property.
How Can You Check if Any Assets Are Yours?
Kenyans can search the UFAA database for unclaimed assets.
Individuals can use their names or identification details to determine whether any assets have been reported under their names.
The authority also encourages beneficiaries to search for assets of deceased family members.
Once a match is found, a claimant must submit the claim forms and supporting documents required by UFAA.
The authority then verifies the claim before transferring the assets to the rightful owner or beneficiary.
Importantly, owners do not lose their money when assets are transferred to UFAA.
The authority holds the assets in trust for owners and beneficiaries.
The law allows rightful owners to claim their assets at any time after proving entitlement, so there is no deadline for filing a claim.
Follow our WhatsApp Channel and X Account for real-time news updates.
