The Unclaimed Financial Assets Authority (UFAA) has explained how assets become unclaimed, just a day after 20 companies were fined a total of Ksh 2.2 billion for failing to remit unclaimed assets.
According to UFFA chairman Dr. CPA Njenga Kigo, it happens when financial institutions or employers lose contact with the rightful owner and fail to reconnect within a set period.
“The asset becomes unclaimed when the owner cannot be located,” Kigo said during a briefing on October 28.
“Once you open an account and desert it, and the bank cannot locate you for two years or when you leave a job and the employer cannot find you for a year that money must be declared unclaimed.”
UFAA Sends Warning to Institutions
Kigo said asset holders such as banks, SACCOs, employers, insurers and even courts are required by law to make every effort to trace the owners of dormant accounts or unpaid benefits.
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If those efforts fail, they must remit the money to the UFAA.
“Once you cannot locate the owner, the next obligation by law is to submit the amount in full to the Unclaimed Financial Assets Authority on or before 31st October,” he said.
“All qualifying unclaimed assets should be remitted by this Friday.”
According to Kigo, commercial banks account for the bulk of unclaimed assets about 70 percent.
He warned that institutions that fail to comply with the law risk heavy penalties.
“If they don’t remit, we’ll get them,” he said. “We are empowered to audit, investigate and recover unclaimed assets without requiring anybody’s authority.”
Fines on Remit Unclaimed Assets
Institutions found holding funds beyond the legal limit face fines, interest charges, and audit costs, sometimes exceeding the amount they withheld.
“Once we find you, you’ll bring the money back and pay penalties,” Kigo warned. “If you don’t pay, we’ll take legal action.”
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The UFAA’s audit teams, he added, are already conducting inspections ahead of the October 31 deadline. Holders who fail to comply could face enforcement measures as the authority steps up efforts to recover unclaimed funds.
“This is a legal obligation,” Kigo said. “Those holding the assets must not only inform us but remit the money annually, before October 31.”
Latest Fined Companies
This comes a day after the authority fined 20 companies and institutions a total of Ksh 2.23 billion for failing to remit unclaimed assets amounting to more than Ksh 5.08 billion.
According to UFAA’s report, the penalties were imposed on organizations that failed to surrender dormant accounts, unclaimed dividends, insurance payouts, and other financial assets as required by law.
| No. | Name of Holder | Unclaimed Financial Assets (KSh) | Penalties Imposed (KSh) | Penalties as % of Unclaimed Assets |
|---|---|---|---|---|
| 1 | Carbacid Investments | 1,075,882 | 30,876,594 | 2,870% |
| 2 | Moi University Retirements and Benefits Scheme | 29,788,759 | 111,609,152 | 375% |
| 3 | Maseno University | 40,655,081 | 74,556,809 | 183% |
| 4 | Pacis Insurance Company Ltd | 6,232,034 | 10,143,026 | 163% |
| 5 | Egerton University | 30,289,654 | 39,104,062 | 129% |
| 6 | Egerton University Pension Scheme | 12,048,522 | 15,350,580 | 127% |
| 7 | Moi University | 171,406,660 | 211,376,187 | 123% |
| 8 | Airtel Kenya | 28,070,855 | 27,200,530 | 97% |
| 9 | Total Kenya Ltd | 27,969,942 | 26,712,095 | 96% |
| 10 | Kenyatta University | 20,795,242 | 19,784,031 | 95% |
| 11 | Equity Bank Ltd | 286,511,724 | 249,728,593 | 87% |
| 12 | United States International University (USIU) | 50,100,371 | 34,975,064 | 70% |
| 13 | CIC Group PLC | 1,458,143,538 | 999,604,283 | 69% |
| 14 | WPP Scan Group | 93,079,528 | 62,169,503 | 67% |
| 15 | Pioneer Assurance Company Ltd | 246,529,341 | 131,103,610 | 53% |
| 16 | Unaitas SACCO | 119,841,836 | 58,039,443 | 48% |
| 17 | UNGA Group | 61,336,034 | 29,402,865 | 48% |
| 18 | Mwalimu National SACCO | 38,259,312 | 16,615,132 | 43% |
| 19 | Gemina Insurance | 48,875,624 | 16,786,826 | 34% |
| 20 | University of Nairobi | 2,318,241,273 | 66,850,000 | 3% |
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