UFAA (Unclaimed Financial Assets Authority) has imposed a fine amounting to KSh 2.2 billion on 20 firms for failing to surrender unclaimed financial assets to the State Organ.
According to UFAA figures, CIC insurance got the largest fine of KSh 999.6m while Carbacid Investments was hit with a KSh 30.9m against its unclaimed assets worth KSh 1.1m.
CIC has the largest chunk of unclaimed assets totalling KSh 1.5 billion.
UFAA list of non-compliant organizations that are still holding huge unclaimed assets, is dominated by Public Universities, led by Nairobi University with unclaimed assets worth KSh 2.3 billion, Moi University KSh 171.4m, Maseno University KSh 40.7m, Egerton University KSh 30.3m, Kenyatta University KSh 20.8m and United States International University KSh 50.1m.
Those still holding unclaimed pensions include Moi University Retirement and Pension Scheme KSh 29.8m and Egerton University Pension Scheme KSh 12.05m.
Banks and insurance companies also feature in the roll of those still holding unclaimed assets, led by Equity Bank with KSh 286.5m in unclaimed assets belonging to its customers, Pioneer Assurance Company KSh 246.5m, Pacis Insurance Company KSh 6.2 m, and Geminia Insurance holding KSh 48.9m.
Airtel Kenya is also holding unclaimed monies on its e-wallet worth 28.07m while Unaitas SACCO is the largest holder of unclaimed assets in the SACCO sector with KSh 119.8m in its coffers. Mwalimu DT Sacco, with the largest balance sheet in the industry, is holding KSh 38.3m in unclaimed assets, Total Kenya has unclaimed assets worth KSh 27.9m while WPP Scan Group holds KSh 93.1 m in unclaimed assets and Unga Group KSh 61.3m.
All the 20 companies that were slapped with fines are holding a total of KSh 5.1 billion in assets whose owners are yet to be traced.
UFAA Remittances and Settlements
Data from UFAA shows that to date, the Authority has KSh 75.6 Billion as approximate value of unclaimed assets remitted. The Authority has paid 33,929 claimants a total of 2.379 Billion.
The Authority has so far received remittances amounting to KSh. 36.1 billion from holders and deposited into its Trust Fund Account, including forex in various denominations. Reports have also been made for 1.9 billion units of shares, 3,737 safe deposit boxes, and 9.9 million unit trusts.
Failure to report and surrender qualifying unclaimed financial assets attract penalties and sanctions or 25% of the unclaimed financial assets held. The deadline is November 1st of each year.
Collapsed Kenya National Assurance Company Limited was the first institution to transfer of all unclaimed assets held within its books to the Unclaimed Financial Assets Authority (UFAA).
In a public notice issued in March 2014, the defunct state-owned insurance firm said that over 25,000 policy holders were yet to make their claims.
The KNAC management stated if those yet to make claims to the Life fund do not do so within 60 days, all unpaid amounts would be transferred to the newly established Unclaimed Financial Assets Authority.
KNAC completed the transfer process, which came to an end in June 2014, ahead of the 1st November 2014 deadline when institutions were to begin reporting, expired.
As at March 20, 2014 a total of KSh 3.9 billion in claims had been settled by KNAC while an estimated KSh 405 million unclaimed assets is what KNAC surrendered to UFAA.
The 25,000 holders were mostly those with small policy holders of between KSh 20,000 and KSh 30,000. Out of 155,000 files, some 25,000 files were still outstanding as at June 2014.
According to UFAA guidelines any funds held under life or endowment insurance policy or annuity that has matured and remains unclaimed for more than two years after benefits became due, should be surrendered to the Authority.
KNAC collapsed decades ago and its operations were taken over by an official receiver. KNAC (2001) Limited came into the picture to run the life fund and pay off policies that had either matured or had acquired some surrender value.
Apart from companies under liquidation, Universities are said to holding the biggest chunk of unclaimed assets.
Section 20 of the UFAA Act deals with reporting of presumed abandoned assets and duties of the assets holder. The law has the necessary instruments and templates for reporting unclaimed assets as well as procedures to be followed before the Authority can settle a claim from any rightful owner of an unclaimed asset(s).
Assets that can be held by the Authority as unclaimed, according to the UFAA Act, include travellers cheques, money orders, Cheques, drafts, or similar instruments, demand, savings or matured time deposits, life or endowment insurance policy or annuity contract, deposit for utility services, ownership interest, assets from dissolved business entity, assets held in fiduciary capacity, unpaid wages, assets held in safe deposit box or repository, assets held by court or Government department.
The law allows the Cabinet Secretary-Treasury to prescribe further classes of assets that can be claimed when abandoned. The Authority will, not later than three years after the receipt of the abandoned assets, sell such assets, subject to a reserve price, to the highest bidder at a public auction.
Any sale held under this section shall be preceded by at least one publication of notice, at least three weeks in advance of sale, in at least one newspaper of national circulation.
Securities listed on a stock exchange shall be sold by the Authority at prices prevailing at the time of sale on the exchange.
