Unclaimed assets drive gains grip with Nairobi summit

Politics and policy

Unclaimed Financial Assets Authority (UFAA) chief executive Kellen Kariuki. PHOTO | DIANA NGILA 

By BD REPORTER

In Summary

• “Stakeholders will get opportunity to learn and discuss critical issues around governance, management and administration of unclaimed Financial Assets, paying particular attention to recent and emerging,” UPAR said in a statement.
• “The Act came to being in October 2011 so holders of unclaimed assets have no excuse not to surrender – we will impose the penalties” said chief executive Kellen Kariuki.

The government’s push for unclaimed is set to gather pace as Nairobi hosts the world to chart the path forward on unclaimed assets.

Unclaimed Property Assets Register Kenya Limited (UPAR) is targeting financial institutions, microfinance institutions, and stockbrokers among other organisations holding unclaimed cash, cheques, interests and wages.

A survey by UPAR found that insurance firms hold 25 per cent of unclaimed funds. Other major holders of idle assets are pension funds and public listed companies

About 200 delegates from across the continent and the rest of the world are expected to attend.

Governance

“Stakeholders will get opportunity to learn and discuss critical issues around governance, management and administration of unclaimed Financial Assets, paying particular attention to recent and emerging,” UPAR said in a statement.

The discussions will also address the underlying economic opportunities for institutions and individuals.

Companies holding unclaimed assets were last week given a month to submit them to the government or be penalised.

The Unclaimed Financial Assets Authority (UFAA) said last week it would impose the penalties this year after giving a four-year grace period for companies to comply.

“The Act came to being in October 2011 so holders of unclaimed assets have no excuse not to surrender – we will impose the penalties” said chief executive Kellen Kariuki.

READ: Agency gives firms 30 days to remit unclaimed assets

Companies are required to submit unclaimed assets in their books as at the end of June each year to the authority by the first day of November of the same year.

Some of the assets that are considered unclaimed include cash in bank accounts for a period exceeding five years without any owner-initiated activity such as withdrawal or request for a statement.

Other unclaimed assets include bankers cheques not cashed for two years, contents in safe deposit boxes unclaimed for more than two years, court awards exceeding two years, and utility deposits held for over two years since termination of services.

Some of the invited speakers include representative from the United States of America, Global Discovery Limited (American National Treasury), WSBI in Brussels, Belgium, Experian (UK), Retirement Benefits Authority (RBA), Kenya Revenue Authority, Central Bank of Kenya, Capital Markets Authority, Insurance Regulatory Authority, Reunification agents as well as a variety of financial services providers and Authorities from the African continent