At least Sh62 billion of unclaimed financial assets have been received from holders comprising of 1.7 billion units of shares and cash
Banks, insurers and other handlers of financial assets should prepare changes in handling unclaimed financial assets following the government’s hint at plans to reform Kenya’s legal and policy framework on unclaimed financial assets to bring it in tandem with global standards.
The hint was laid bare by National Treasury Principal Secretary Dr Chris Kiptoo in a speech during the launch of Unclaimed Financial Assets Authority (UFAA) strategic plan 2023-2028.
“The government is addressing the gaps in the policy framework because supportive legal and policy framework is a key ingredient for the Authority to deliver on its mandate,” the PS said at a city hotel.
Dr Kiptoo said that UFAA management has been recognized in the fourth medium term plan as a key enabler of financial inclusion under the financial services sector plan.
“A total of Sh62.34 billion of unclaimed financial assets have been received from holders comprising of 1.7 billion units of shares and cash,” the PS says.
Out of this, over 29,070 claimants have been reunified a total sum of Sh2.03 billion.
UFAA Chairman Dr Francis Kigo Njenga said that the strategic plan seeks to achieve four key objectives.
They include enhancing the holders’ compliance in declaration and surrender of unclaimed financial assets, strengthening accountability and sustainability in safeguarding unclaimed financial assets and other financial resources.
There is also the increasing of the reunification rate of unclaimed financial assets with the rightful owners as well as strengthening UFAA’s institutional capacity.
“This commitment to the Unclaimed Financial Assets Authority and its mission lends credence to enduring hope that the Authority will secure a stable and prosperous future for its stakeholders over the next five years,” said Dr Kigo.
Dr Kigo revealed that the organization will scale-up its leverage on technology, partnerships, and innovation not only in making service delivery to our stakeholders effectively and efficiently, but also in benefiting society by institutional conduct.