Senate queries Sh8.8 billion in unclaimed assets held by state
By Maureen Kinyanjui |
The Senate Finance and Budget Committee, chaired by Mandera Senator Ali Roba on Tuesday found that while Sh11.5 billion in assets was expected, only Sh1.5 billion has been fully accounted for.
A Senate investigation has revealed that the government is holding Sh8.8 billion in unclaimed assets despite identifying the owners, raising questions about the efficiency of the Unclaimed Financial Assets Authority (UFAA).
The Senate Finance and Budget Committee, chaired by Mandera Senator Ali Roba on Tuesday found that while Sh11.5 billion in assets was expected, only Sh1.5 billion has been fully accounted for.
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This probe was prompted by a statement from nominated Senator Gloria Orwoba, who raised concerns over alleged financial mismanagement within UFAA, calling for an investigation into discrepancies and possible oversight lapses.
"Investigate discrepancies regarding unclaimed funds amounting to Sh10 billion that cannot be accounted for, given that only Sh1.5 billion out of Sh11.5 billion has been accounted for, and state any measures the Board has taken against the management in the supervision of the audit," she urged.
UFAA defended its operations, stating that it has implemented measures to enhance transparency, such as quarterly internal audits, external audits by the Auditor General, and regular asset recovery reports to its Board of Directors.
Acting CEO Caroline Chirchir assured the Senate that funds within the Unclaimed Assets Trust Fund remain secure and are managed according to strict regulatory guidelines.
"We have identified Sh11 billion, and only Sh1 billion has been remitted, and another Sh1 billion was basically reunified at source given back to the owners who were wrongfully identified as having abandoned [their assets]. So there is an outstanding Sh8.8 billion," she explained.
However, UFAA has yet to provide a detailed breakdown of the assets and their distribution.
The Senate expressed frustration with the slow pace of returning assets to rightful owners. Kisii Senator Richard Onyonka questioned why the reunification process is delayed despite the owners being identified.
In response, Chirchir pointed to staffing challenges, stating that UFAA's limited personnel, with only three staff members handling compliance matters, has hindered the process.
She added that UFAA is actively engaging with institutions that have yet to remit certain assets, and these discussions are ongoing.
"There are few challenges we have experienced in the process, and this is partly because we are not able to follow through, the reason being we have very lean staffing in the institution," Chirchir noted.
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