Nairobi bourse CEO in full praise of Ufaa's active shares trading move

Nairobi Securities Exchange CEO Geoffrey Odundo last week during the launch of this year’s Financial Reporting (FiRE) Awards applications submission period. He said NSE, Ufaa and the National Treasury will work together to ensure Kenyans with dormant accounts are informed of their wealth thereby helping improve livelihoods.

Diana Ngila | Nation Media Group

By  James Kariuki

What you need to know:

• NSE chief executive Geoffrey Odundo last week said the authority’s entry will shore up activity at the bourse due to its large portfolio of 800 million units that have remained dormant for years.
• Mr Odundo said they supported Ufaa’s takeover plan adding that safeguarding Kenya’s unclaimed financial assets was key to boosting confidence with market’s ability to protect and re-unite the same with beneficiaries.
• Ufaa, which holds a non-trading shares depository licence, said owners can search for any wealth owned by their ageing parents, guardians or departed relatives from their website.

The Nairobi Securities Exchange (NSE) has welcomed the active participation of Unclaimed Financial Assets Authority (Ufaa), which has announced plans to bulk unclaimed shares into one portfolio.
NSE chief executive Geoffrey Odundo last week said the authority’s entry will shore up activity at the bourse due to its large portfolio of 800 million units that have remained dormant for years.

“It would be prudent for the authority to become an active participant in the bourse as it will enhance liquidity in our market, support better pricing of listed securities, drive domestic institutional investor’s participation as well as generate returns for the national government,” he said.
Mr Odundo said they supported Ufaa’s takeover plan adding that safeguarding Kenya’s unclaimed financial assets was key to boosting confidence with market’s ability to protect and re-unite the same with beneficiaries.

“As a market, we have established robust systems that ensure investor assets remain protected in case of dormancy resulting from various factors. We back the move that is aimed at enabling investors or their beneficiaries claim their investments or expedite the transfer of this investments safely to the beneficiaries,” he said.

Good tidings

Mr Odundo said NSE, Ufaa and the national Treasury will work together to ensure Kenyans with dormant accounts are informed of their wealth thereby helping improve livelihoods.
Ufaa chief executive John Mwangi said bulking, which takes place after next week, means all unclaimed stocks will be held under Ufaa’s names thereby helping manage funds from receiving dividends , participating in annual general meetings as well as taking up share splits for the good of the beneficiaries.

“No shares are being disposed of but Ufaa will now take over a representative role for the unclaimed shares thereby helping safeguard them from value erosion and loss of dividend making it easy for beneficiaries to claim their monies from one counter,” he said.
Ufaa, which holds a non-trading shares depository licence, said owners can search for any wealth owned by their ageing parents, guardians or departed relatives from their website.
Monies received from dividends accruing from dormant share accounts is usually kept in Ufaa’s trust account that invests in government bonds in perpetuity until beneficiaries are found to facilitate re-unification.
Bulking portends good tidings for the government whose shareholding in various listed companies will rise giving it a say in how they are managed.
jkariuki@ke.nationmeda.com