Unclaimed Financial Assets in Kenya

Unclaimed Financial Assets in Kenya

Do you have unclaimed financial assets in Kenya? Are you unsure of the process to reclaim them? You could be sitting on unclaimed wealth without even knowing it! We partner with you to simplify the process and help you unlock your assets.

Understanding Unclaimed Financial Assets in Kenya

The Unclaimed Financial Assets Act, 2011, was enacted by the Kenyan Parliament to ensure unclaimed financial assets are properly managed, reported, and ultimately returned to their rightful owners. This law provides a comprehensive framework to safeguard these assets and establishes the Unclaimed Financial Assets Authority (UFAA) to oversee this process.

In this post, we break down what unclaimed financial assets are, the role of the UFAA, how you can claim your assets, and why this legislation is important for you.

What Are Unclaimed Financial Assets?

Unclaimed financial assets are funds or other financial assets that have been inactive or untouched for a specific period, during which the rightful owner has not made any transactions or expressed interest. These assets may include:

• Savings or current account balances – dormant bank accounts with no transactions for years
• Life insurance policies – where the beneficiaries have not claimed
• Shares and dividends – unclaimed profits from stock investments
• Utility deposits – deposits for services like electricity or water
• Unclaimed wages or employee benefits – salaries or pensions that remain unpaid

Once the specified dormancy period has passed, these assets are considered unclaimed. The asset holder is then required to report and transfer them to the Unclaimed Financial Assets Authority (UFAA).

The Role of the Unclaimed Financial Assets Authority (UFAA)

The UFAA was established to manage and safeguard unclaimed financial assets in Kenya. Its primary functions include:

• Reporting and safekeeping – UFAA receives reports of unclaimed assets from banks, insurance companies, employers, and other institutions.
• Tracing rightful owners – UFAA makes efforts to trace the owners or their beneficiaries using methods such as public advertisements and notices in newspapers.
• Managing the Unclaimed Financial Assets Trust Fund – All unclaimed assets are temporarily held in this Trust Fund until the rightful owner claims them.

The UFAA acts as the bridge between asset holders and owners, ensuring the safe return of assets.

What Are the Duties of Asset Holders?

If you are an institution or individual holding unclaimed financial assets, the law requires you to make efforts to notify the rightful owner. After a defined period, if the owner cannot be reached, you are legally obligated to report and transfer the assets to the UFAA. Failure to do so can result in penalties, including fines and imprisonment.

The reporting process typically involves:

1. Locating the owner – Attempt to contact the asset owner through written communication or public announcements.
2. Reporting to UFAA – If no contact is made, file a report with the UFAA providing details of the unclaimed assets.
3. Transferring the assets – Transfer the assets to UFAA, which then takes over responsibility for tracing the rightful owner.

How to Claim Your Unclaimed Financial Assets

If you suspect you may have unclaimed financial assets, there’s a simple process to follow. The UFAA provides a public database where you can search for assets registered under your name or your relative’s name. To claim your assets:

1. Conduct a Search – Visit the UFAA website and use their search tool to look for unclaimed assets.
2. File a Claim – If any assets are found, you will need to fill out a claim form and provide necessary identification documents.
3. Verification and Approval – The UFAA will verify your claim. This may involve submitting additional proof of ownership or connection to the unclaimed asset.
4. Receive Your Assets – Once the claim is approved, the assets will be returned to you.

Whether it’s forgotten bank accounts, unclaimed insurance, or unpaid wages, reclaiming your wealth could be easier than you think.

Why Is the Unclaimed Financial Assets Act Important?

The Unclaimed Financial Assets Act plays a critical role in protecting the financial interests of individuals and institutions across Kenya. Here are a few reasons why this law matters:

• Safeguarding Forgotten Wealth: Individuals may forget about old savings accounts, insurance policies, or employee benefits, especially over time. This Act ensures that such assets are protected and retrievable.
• Financial Transparency: By promoting transparency in how unclaimed assets are managed, the Act fosters trust in Kenya’s financial system.
• Business Compliance: Businesses holding unclaimed assets must stay compliant by regularly reviewing their records, identifying dormant assets, and reporting them to UFAA. Failure to comply could lead to heavy penalties, which makes it crucial for organizations to adhere to the law.

We Help You Reclaim Your Assets

Do you find the process of claiming unclaimed financial assets overwhelming or confusing? You don’t have to navigate it alone. We can also assist you in notarizing your documents where required. 

Start your journey today by contacting us at info@swkadvocates.com. Let us help you unlock your hidden wealth!