Unclaimed assets pile up as companies remit Sh3.8 billion, 407 million shares to UFAA
By Lucy Mumbi |
Ufaa had set a target of collecting Sh4.5 billion and 300 million shares for the review period, surpassing the goal for shares but falling short of its cash target.
Companies have surrendered 407 million shares and Sh3.8 billion in cash to the Unclaimed Financial Assets Authority (UFAA) in the financial year ending June 2024, increasing pressure on the agency to return these assets to their rightful owners.
Data from Ufaa show that while cash remittances fell by 15 per cent from Sh4.5 billion in the previous year, the number of shares nearly tripled, rising from 150 million to 407 million.
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The increase follows UFAA's campaigns, which encourage companies to hand over unclaimed assets to avoid penalties.
UFAA had set a target of collecting Sh4.5 billion and 300 million shares for the review period. It exceeded the goal for shares but fell short of its cash target.
"Overachievement [of number of shares received] was due to the awareness programme on holders of unclaimed assets," UFAA said in its submissions to the National Treasury.
25 per cent penalty
Under the law, Ufaa can impose a 25 per cent penalty on any entity that fails to surrender unclaimed assets. Additionally, penalties ranging from Sh7,000 to Sh50,000 can be charged for each day assets remain unremitted.
Despite UFAA's increased efforts, the percentage of unclaimed assets successfully returned to their rightful owners remains low.
As of September 2024, UFAA reported cumulative remittances of Sh32.2 billion, with Sh1.17 billion in foreign currencies and the remainder in Kenya shillings. The agency also holds 1.7 billion shares, 3,740 safe deposit boxes, and 9.9 million unit trusts.
The Unclaimed Assets Trust, which manages these assets, valued the shares it held in the year ending June 2022 at Sh25 billion. UFAA's data shows that by June 2024, only six per cent of the assets had been returned to their owners, an improvement from 3.7 per cent in the same period the previous year.
UFAA says it aims to collect at least Sh5 billion in cash and 150 million shares in the financial year starting July 2025, with a target reunification rate of 10 per cent.
For the current financial year ending June 2024, UFAA hopes to remit Sh5 billion in cash and 350 million shares, while aiming for a reunification rate of 5.5 per cent.
To claim assets, individuals must file a claim with Ufaa, which takes up to 90 days to process. However, the current claims process is cumbersome, particularly for those with smaller-value claims, discouraging many people from pursuing their unclaimed assets.
Ufaa noted that public disinterest and unresolved family disputes remain significant barriers to reuniting these assets with their rightful owners.
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