Business
UFAA urges Kenyans to claim billions in dormant funds before October 31 deadline
An asset is considered unclaimed when its owner cannot be traced for a specified period, which is typically two years for bank accounts and one year for employer-held funds. Despite efforts to contact the owner via their last known address, the asset is deemed unclaimed and must be remitted to UFAA by the 31st of October each year.
With the October 31 deadline fast approaching, the Unclaimed Financial Assets Authority (UFAA) is urging both Kenyans and financial institutions to act quickly to either remit or claim unclaimed financial assets. The authority warns that holders who fail to comply with this legal requirement will face audits, penalties, and fines.
UFAA Chairperson Njenga Kigo, speaking in an interview on Power Talk on Citizen TV, emphasized the importance of meeting the deadline to ensure that unclaimed assets are properly processed and returned to their rightful owners.
Established under the Unclaimed Financial Assets Act No. 40 of 2011, UFAA’s role is clear: to receive, safeguard, and reunite unclaimed assets with their legal owners. “We are created for a purpose, to receive all unclaimed financial assets, safeguard them, and reunite them with the rightful owners,” Kigo explained.
He further clarified that unclaimed financial assets are dormant monetary assets held by banks, insurance firms, employers, and other entities, rather than physical property. These assets include unclaimed bank deposits, unpaid insurance benefits, dividends, court deposits, and refunds from services like water and electricity providers.
An asset is considered unclaimed when its owner cannot be traced for a specified period, which is typically two years for bank accounts and one year for employer-held funds. Despite efforts to contact the owner via their last known address, the asset is deemed unclaimed and must be remitted to UFAA by the 31st of October each year.
“If holders cannot locate the owner, they must submit the amount in full to the Unclaimed Financial Assets Authority on or before 31st October,” Kigo said. “Failure to do so attracts audits, penalties, and interest, in addition to covering the cost of the audit.”
According to Kigo, commercial banks are the largest contributors, holding about 70 percent of the unclaimed assets. Since UFAA began operations in 2016, the authority has received over Sh36 billion in cash and 1.9 billion units of shares worth roughly Sh66 billion, bringing the total value of assets under UFAA’s management to Sh102 billion. However, a recent survey estimates that more than Sh385 billion in unclaimed assets remain spread across various institutions.
Kigo also encouraged Kenyans to check if they have any dormant assets by using the USSD code *361# or visiting the UFAA website at www.ufaa.go.ke, where they can search for assets and submit claims free of charge. “Kenyans must know their money is safe,” he assured. “We safeguard it and remit it to the rightful owners within 21 days of verification.”
For beneficiaries of deceased relatives, Kigo urged them to present the necessary documentation, such as grants of administration, to claim any unclaimed funds. “The money belongs to the people,” he said. “We urge Kenyans to claim it and reinvest it into the economy.”