The Unclaimed Financial Assets Authority (UFAA) has surpassed its three-year target by paying trustees over KSh300 million after they successfully lodged claims for their money.
The Authority headed by Kellen Kariuki has also been able to exceed its three-year target of collecting KSh15 billion from financial institutions by netting KSh16.3 billion in a year. Out of the KSh16.3 billion, KSh6.3 billion are in cash while KSh10 billion are in shares.
In its three year strategic plan (2015-2018), the Authority targets to pay five per cent of the funds collected from financial institutions.
The Authority’s Head of Corporate Communications Paul Muya told Kenyans at the just concluded Nairobi International Trade Fair that UFAA has held awareness creation campaigns in Nakuru, Baringo and Nairobi counties and it is planning to hold similar fora in Makueni and Kwale.
In an interview with KNA, Muya said: “The Authority has been able to surpass its three-year target in one year due to a public sensitisation campaign launched last year on the importance of collecting unclaimed assets. It targets to increase collection of unclaimed assets to Ksh20 billion and also remit five per cent of the assets to their owners.”
According to the Unclaimed Financial Assets Authority Act 2011, a financial asset is considered unclaimed when no claims has been made, no transactions done on the item or no instructions have been given with respect to the asset for a period of time.
The Act which establishes the Authority requires holding entity to submit a report and remit assets presumed abandoned on or before the first day of November of each year for the 12-month period ending on the immediately preceding 30th day of June.
The surrendered unclaimed funds are held in a trust fund in Central Bank of Kenya, where they are invested in government securities as their rightful owners are traced and remittance of the principal sum done.