Firms return Sh1bn idle assets in deadline rush
Unclaimed Financial Assets Authority (Ufaa) CEO John Mwangi, senior accountant, Leonard Langat and cooperation secretary James Nduna in this past photo.
What you need to know:
- Unclaimed Financial Assets Authority (Ufaa) chief executive John Mwangi said submissions over the period raised the value of unclaimed property in its custody to Sh17 billion by yesterday with more cash expected before the end of today.
- Ufaa latest data shows unclaimed assets have risen by 23 percent in 2019 or Sh3 billion to Sh16 billion, most in uncollected salaries, pension dues, matured policies, bank deposits and royalties.
- Mr Mwangi said compliance by corporates and State agencies has improved over the past four years, with most providing detailed information.
Corporates and State agencies surrendered Sh1 billion in unclaimed assets in three months to October in a stampede to beat a deadline to do so by today or risk sanctions, new data shows.
The Unclaimed Financial Assets Authority (Ufaa) chief executive John Mwangi said submissions over the period raised the value of unclaimed property in its custody to Sh17 billion by yesterday with more cash expected before the end of today.
He said the agency had also completed audit for 80 companies and issued some of them with notices of sanctions for non-compliance.
“The notices expire in 14 days after, which offending firms will be expected to comply forthwith by surrendering the monies with accompanying reports as well as pay the penalties. For companies facing cashflow challenges, we have an obligation to listen and come up with an agreeable repayment plan,” said Mr Mwangi.
Ufaa latest data shows unclaimed assets have risen by 23 percent in 2019 or Sh3 billion to Sh16 billion, most in uncollected salaries, pension dues, matured policies, bank deposits and royalties.
Known public figures
The law allows Ufaa to charge any entity that fails to surrender unclaimed assets a penalty of 25 percent of the assets held.
In addition, Ufaa also charges a penalty of between Sh7,000 and Sh50,000 for each day that the assets stay before being submitted.
Mr Mwangi said compliance by corporates and State agencies has improved over the past four years, with most providing detailed information.
It includes evidence of efforts made to trace owners of the unclaimed funds left in banks, sacco accounts, dividend monies, mature insurance policies, uncollected wages, book royalties, mobile money accounts, utility fees and pension dues among others.
“Each firm must invest some resources in tracing owners of the unclaimed funds and should only surrender the same if the owners are not traced. Ufaa’s task is to publicise the same upon receiving the monies and shares,” he said.
This follows incidents where known public figures had named publicised on Ufaa’s website revealing unwillingness among holders of unclaimed funds to trace the holders.
