Home Business UFAA rides on tech hasten reunification of unclaimed wealth

UFAA rides on tech hasten reunification of unclaimed wealth

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UFAA CEO John Mwangi (left) and Murang’a East Deputy County Commissioner Thomas Nyoro flag off a truck for a roadshow campaign on services offered by the authority. Photo by Bernard Munyao
UFAA CEO John Mwangi (left) and Murang’a East Deputy County Commissioner Thomas Nyoro flag off a truck for a roadshow campaign on services offered by the authority. Photo by Bernard Munyao. PHOTO | FILE

The Unclaimed Financial Assets Authority (UFAA) has unveiled a six-year robust reunification strategy that will enable institutions operate according to the regulatory standards on unclaimed financial assets.

Speaking during the launch of the plan, UFAA Chairman Francis Njenga said the plan articulates the Authority’s mandate of receiving, safeguarding and reuniting unclaimed assets with high levels of integrity and enhanced control.

“The Plan will ensure that placeholders will be compliant with the Unclaimed Financial Assets Act No 40 of 2021 in safeguarding of unclaimed financial assets and other financial resources, reunification of unclaimed financial assets with the rightful owners and institutional development,” said Njenga.

UFAA said they targeted to receive Ksh 100 billion in the plan period against the estimated Ksh 241 billion in the custody of holders. However, only Ksh 55 billion worth of assets was realized with Ksh 27 billion in cash and Ksh 28 billion in shares by December 2022.

“We shall scale-up our leverage on technology, partnerships and innovation not only in making service delivery to our shareholders effectively and efficiently, but also in benefitting society by our institutional being and conduct,” said UFAA CEO and Managing Trustee, John Mwangi.

The Authority plans to convert non-cash unclaimed assets to cash equivalent especially those in shares and safe deposit contents since evidence show that it is easier to reunify cash assets. A reunification target of 20pc is expected annually.

According to Unclaimed Financial Assets Receipt, 67.7pc had been submitted by banks, 16.9pc by listed companies, 9.3pc by telecoms 5.3pc from insurance companies, pension funds remitted 0.1pc while saccos submitted 0.3pc worth of assets.