Bankers ask for board slot in assets authority

Unclaimed Financial Assets Authority chairman Vincent Kimosop at a recent function in Nairobi. He told Nation that the authority is not under obligation to communicate with banks through the Kenya Bankers Association. Photo/FILE  NATION MEDIA GROUP

In Summary

• Unclaimed Financial Assets Authority chairman Vincent Kimosop told Nation that the authority is not under obligation to communicate with banks through the Kenya Bankers Association.

By RAMENYA GIBENDI
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The Kenya Bankers Association is perturbed with the manner in which the Unclaimed Financial Assets Authority is demanding repatriation of unclaimed funds.

 

The lobby group is also demanding a boardroom slot at the authority arguing that the current composition is not representative of all groups with an interest.

In a letter to Treasury Cabinet Secretary Henry Rotich, the association is accusing the authority of breaching an agreement in which Treasury was to provide them with an official contact.

“It has come to our attention that an officer of the authority has been calling banks requiring them to confirm that they were complying with the Unclaimed Financial Asset Act,” reads the letter signed by the banks association boss Habil Olaka.

The lobby group said the Treasury had committed to formally provide lenders with an official contact for the purposes of compliance with the act.

Kenya Bankers Association was also required to refer banks to the acting boss of the authority George Omimo and act as the sole link between member and the authority.

“We, therefore, ask the authority through your office to formally communicate to all financial sector players regarding the official position of the regulator,” said the association in the May 28 letter to Treasury.

Not under obligation
Unclaimed Financial Assets Authority chairman Vincent Kimosop told Nation that the authority is not under obligation to communicate with banks through the Kenya Bankers Association.

“This is an authority and are not legally obliged to enforce our mandate through third parties,” said Mr Kimosop by telephone.

That did not mean that it cannot partner with institutions while maintaining its independence, he said.

The demand to have the banker’s association represented at the assets board will need an amendment to the law that formed the authority in 201