The Unclaimed Financial Assets Authority (UFAA) has developed an online system to facilitate filing, processing and disbursement of unclaimed financial assets in cash, stocks and other assets.
The new online system is expected to help the Authority with faster processing and disbursement of over Ksh. 51 billion worth of unclaimed financial assets.
UFAA is also deploying an online holders’ reporting and surrenders system that will make it easier for holders to submit and surrender unclaimed financial assets in their possession. To deepen reunification, the Authority is conducting discussions with Huduma Kenya to roll out UFAA’s services at Huduma Centers and Huduma Mashinani across all 47 counties in Kenya.
Disbursement of unclaimed financial assets has been growing steadily from a paltry Ksh. Ksh. 30 million in 2016 to Ksh. 1.2 billion by June 2021.
As of June 2021, remittances from entities amounting to Ksh. 20.3 billion had been received into the Unclaimed Assets Trust Fund. Reports had been made for 915 million units of shares valued at Ksh. 30.5 billion. 2,873 unclaimed safe deposit boxes were also surrendered to the Authority.
UFAA CEO and Managing Trustee, Mr. John Mwangi says the Authority is seeking approval of a National Policy on Unclaimed Assets that has recommended legal amendments of the Unclaimed Financial Assets Act, 2011, and Unclaimed Financial Assets Regulations 2016 to enhance disbursements.
Current legal frameworks have been cited as not favourable to claimants with low value claims which forms the bulk of unclaimed financial assets remitted to the Authority.
A recent customer survey report found that potential claimants are discouraged from lodging low-value claims on account of stringent documentations and authentication requirements as provided for in the Act and Regulations. “Procedure of obtaining UFAA’s services is considered complicated and cumbersome for claimants, especially a requirement to have all claim forms commissioned by lawyers,” the report noted.
“We have submitted a proposal to the National Treasury for the amendment of the Act and Regulations to address emerging reunification challenges experienced by the Authority over the years,” said Mr. John Mwangi.
He observes that upon amendment to the Act and Regulations, tracing and verification of assets owners and beneficiaries will be in sync with feedback expressed by UFAA customers over the years. The proposal includes option for donation available to owners and beneficiaries. Fraud mitigation and data security remains central to these amendments.
Mr. Mwangi notes that these measures will be matched by continuous public sensitization campaigns to create awareness about the mandate of the Authority to both holders and claimants.