You are probably the owner of an Unclaimed Financial Asset

241 BILLION! That is the 2018 estimate of the value of Unclaimed Financial Assets in Kenya. Enough to build THIKA ROAD 8 TIMES OVER.

In this years' budget there are proposed amendment's that will essentially REPEAL, NEGATE & render legally toothless the only law that protects Kenyans, the Unclaimed Financial Assets Act, 2011.

FINANCE BILL 2022 SECTION 51 seeks to insert into the Unclaimed Financial Assets Act two new sections that propose to legally WAIVE in their entirety the interest, penalties, fines and EVEN audit fees for institutions that do not hand over Unclaimed Assets.

 
SECTION 51 further proposes to convert the Act from a MANDATORY to a VOLUNTARY framework that will legally allow YOUR BANK and other holders to:

• VOLUNTARILY CHOOSE whether or not to report and deliver Unclaimed Assets;
• DEMAND WAIVERS on interest and penalties;
• RETAIN all ill-gotten gains and profits generated from investing Kenyans Unclaimed Assets;
• INCENTIVISES NON-COMPLIANCE making it profitable for Banks and Institutions to not report Unclaimed Assets

A bank will easily track you to the ends of the Earth to collect their money but won't phone your children when you die and your account goes inactive. Haven't we all heard stories of exorbitant fees charged on idle accounts. Financial Institutions must not be allowed to get away scot free!

As things are now, when assets become unclaimed, holders of those assets; banks, insurers et al, are required by law to hand over those assets to the Unclaimed Financial Assets Authority (UFAA) by the 1st of November every year for safe-keeping and reunification to the rightful owner.

In the Act there are severe penalties for Financial Institutions that hold on to Wanjiku's Unclaimed Financial Assets. These penalties are an important tool for enforcement of the Act and the most effective measure available to deter non-compliance.

There is a claim that these amendments will help the Authority (UFAA) collect more Unclaimed Assets but looking at the numbers, the area that UFAA is failing is not in the collection of Unclaimed Assets from Holders, it is in the Reunification of assets to their beneficiaries and owners.

TOTAL UNCLAIMED ASSETS COLLECTED SO FAR - KSHS 54.8 BILLION

TOTAL ASSETS RETURNED TO KENYANS - (a measly) KSHS 1.5 BILLION

We need to make amendments to the Unclaimed Financial Assets Act that actualize REUNIFICATION and service provision.

Currently, the Unclaimed Financial Assets Authority is the Regulator, Trustee and the Service Provider hence, the inefficiency in service delivery. It would be akin to having;

• Central Bank offering Commercial Banking services & also in charge of the Deposit Protection Fund;
• Or the Capital Markets Authority also trading securities;
• Or the Insurance Regulatory Authority selling Insurance Policies;
• Or the Communications Authority selling internet services

& other such conflicts where a regulator is also a service provider.

This touches us all and reunification is more important than collecting, let us fight for that.

The Finance Bill, 2022 was tabled in Parliament on 13th April 2022. This Bill contains the proposed amendments to the Unclaimed Financial Assets Act and other laws regulating the financial sector.

The Bill is now before the National Assembly for consideration and us, the public have been invited to submit comments on the Bill before it is approved by Parliament and assented into law sometime this June.

IF YOU ARE IN A POSITION TO HELP, PLEASE DO

To check if you have unclaimed assets visit ufaa.go.ke