Earlier this week, the government revealed that financial assets worth KSh80 billion lie dormant at an account held at the Central Bank of Kenya with concerns that Kenyans do not know how to claim this wealth. Unclaimed Financial Assets Authority (UFAA) Acting CEO Caroline Chirchir noted that this consists of KSh36 billion in cash while there are 1.9 billion units of unclaimed shares that the authority is yet to get their rightful owners.

According to the authority, only 33,929 claimants have been paid with total payouts amounts to KSh2.37 billion since it was established in 2011. There are over 3 million entries of unclaimed financial assets on UFAA’s register.

This vast sum, a potential catalyst for economic growth and individual prosperity, remains unclaimed, raising critical questions about awareness, financial literacy, and the efficiency of the systems designed to return these assets to their rightful owners. 

The UFAA, mandated to safeguard and reunite these funds with their beneficiaries, holds a treasure trove that demands closer scrutiny. Established to protect assets abandoned by their owners, the UFAA acts as a central repository for unclaimed bank deposits, shares, dividends, insurance proceeds, mobile money balances, and other financial instruments. 

The sheer volume of these assets, which continues to grow, underscores a persistent challenge in Kenya’s financial landscape. The legal framework surrounding unclaimed assets, while in place, appears insufficient to fully address the issue.

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But several factors contribute to this accumulation of “untapped wealth.” 

Firstly, Kenyans are yet to widely adopt the culture of wills which makes it difficult for relatives of those who have died to know what their kin own. This compounded with a lack of transparency in families when it comes to records of investments and purchases has left many unaware that there are assets that could uplift their lives but now held in trust by the government.

Secondly, a significant portion of Kenyans remains unaware of the existence of the UFAA register or how to claim unclaimed financial assets. Public awareness campaigns, while conducted, have yet to achieve widespread penetration, particularly in rural areas. 

Thirdly, inadequate record-keeping practices within some financial institutions exacerbate the problem, making it difficult to trace rightful owners. The fluidity of modern life, with migration and mortality, also leaves a trail of forgotten assets. Furthermore, the perceived complexity of the claims process acts as a deterrent, discouraging potential claimants from pursuing their rightful dues. 

Finally, low financial literacy rates across a large segment of the population means that many citizens are not aware of the importance of keeping track of their financial assets.

The implications of these unclaimed billions are equally profound. Economically, these funds could inject much-needed capital into the economy, stimulating growth and creating opportunities. Socially, they represent a potential lifeline for individuals and families, particularly those facing financial hardship. 

The UFAA’s ability to efficiently manage and return these assets directly impacts public trust in the financial system. The government, as a key stakeholder, has a responsibility to both educate the public on how to claim unclaimed financial assets and ensure compliance from financial institutions.

How to claim unclaimed financial assets

The path to reclaim forgotten wealth held by UFAA begins with a crucial act: determining one’s eligibility. Whether you are the original owner of a dormant bank account, a forgotten share certificate, or a beneficiary of a deceased’s insurance proceeds, the journey commences with this self-assessment.

Once eligibility is established, the next step involves a diligent search. The UFAA’s digital portal, USSD (*361#) or their physical offices serve as gateways to uncovering whether your name resides within their vast database of unclaimed assets. 

With potential assets identified, the meticulous process of document gathering commences. This is where precision becomes paramount. National identification, KRA PIN certificates, and official letters from the asset’s original holder form the bedrock of the required paperwork.

The UFAA provides a variety of claim forms, each tailored to specific circumstances. Whether you are the original owner, a beneficiary, or representing a business entity, selecting and accurately completing the appropriate form is essential. Notably, many of these forms require the validating stamp of a lawyer, adding a layer of legal formality to the process.

With forms completed and supporting documents assembled, the claim is ready for submission to the UFAA. Here, the authority assumes the role of a diligent investigator, meticulously verifying the claim’s authenticity. This verification process, while thorough, can be time-consuming, requiring patience from the claimant.

Finally, upon successful verification, the long-awaited moment arrives: the release of the unclaimed assets. Whether through a direct bank transfer or the transfer of ownership documents, the UFAA facilitates the return of these forgotten fortunes. 

Throughout this process, it is important to remember that the UFAA provides information on its website, and that it is always best to ensure accuracy of the information provided to them.

The billions held by the UFAA represent more than just numbers; they represent the potential for economic empowerment and improved livelihoods. By addressing the root causes of unclaimed assets and implementing effective solutions, Kenya can unlock this “untapped wealth” and ensure that it benefits those to whom it rightfully belongs.