Sh200bn worth of assets unclaimed in Kenya

A large amount of unclaimed assets include cash deposits in banks, insurance premiums, retirement benefits, and dividends. Photo/LIZ MUTHONI 

By WINSLEY MASESE

About Sh200 billion worth of assets remain unclaimed in the financial system, corporate firms and utilities institutions, a report has revealed.

Assets ranging from bank deposits to dividend cheques, retirement benefits and more recently virtual money held in mobile phones by deceased persons are going unchecked as the government drags its feet on instituting relevant legislation.

According to a survey by the Retirement Benefits Authority (RBA) in conjunction with the Unclaimed Property Asset Register (UPAR), nearly Sh200 billion was found to be held by different institutions in 2008.

This amount mainly included cash deposits in banks, insurance premiums, retirement benefits, and dividends.

A large amount, 45 per cent, is held by commercial banks, 25 per cent by insurance firms, while pension funds hold about Sh40 billion.

Others include shares held at the Nairobi Stock Exchange (NSE) and utility deposits to service providers such as Kenya Power and Light Company and Nairobi Water Company.

“The issue of unclaimed assets is a growing concern. We recognise that Kenya has not had a policy on the management of unclaimed assets to date,” said Mr Joe Mwangi Mbuthia, the Institute of Certified Public Secretaries of Kenya (ICPSK) chairman.

The ICPSK recommends that unclaimed assets be held for a maximum of seven years by the holding company.

“At the expiry of this period, the unclaimed assets have to be remitted to an Unclaimed Assets Trust Fund for a period of fifteen years,” Mr Mbuthia said.

The Capital Markets Act amended in March 2007 provides that unclaimed dividends outstanding in listed companies for more than seven years be remitted to the Investor Compensation Fund, however according to ICPSK, no much change has been noticed.

After 15 years in the Unclaimed Asset Trust Fund, the body recommends that the Consolidated Fund be the ultimate destination.

“These monies should then be assigned a specific purpose in the budget by the Minister for Finance,” Mr Mbuthia said.

The Trust Fund will also be required to make regular reports to an Unclaimed Asserts Oversight Authority Board of the unclaimed assets they hold.

 

The authority should also monitor reunification of assets with their owners or rightful beneficiaries and the Trust Fund to submit audited accounts each year for accountability and transparency