The Unclaimed Financial Assets Authority (UFAA) is a critical government agency established under the Unclaimed Financial Assets Act (No. 40 of 2011) to manage unclaimed financial assets in Kenya. UFAA operates under the mandate of The National Treasury and has the core objective of reuniting unclaimed financial assets with their rightful owners.
Unclaimed financial assets are defined as funds or properties held by institutions that have not been claimed by their rightful owners for a specified period. These assets can originate from a variety of sources, including dormant bank accounts, uncollected dividends, unclaimed insurance policies, and even lottery winnings.
Examples Of Unclaimed Financial Assets
The assets that fall under the purview of UFAA include:
- Dormant bank accounts that have seen no activity for a long period.
- Unclaimed dividends and interest earned from stocks, shares, and other investment vehicles.
- Unclaimed utility deposits from power and water companies.
- Unclaimed retirement benefits held by insurers and pension administrators.
- Unclaimed death benefits and annuities from insurance companies.
- Unclaimed bail and bond money deposited in courts of law.
- Unclaimed deposits from collapsed or liquidated institutions.
- Uncollected lottery prize money or winnings from betting activities.
These assets remain unclaimed because owners may have relocated, passed away without leaving heirs, or forgotten about their existence. The role of UFAA is to act as a custodian of these assets until their rightful owners come forward.
Functions Of The Unclaimed Financial Assets Authority (UFAA)
1. Receive, Safeguard, Invest, and Disburse Unclaimed Financial Assets
UFAA is responsible for the collection and management of unclaimed financial assets. Once these assets are turned over by financial institutions, UFAA ensures they are safely stored and, where necessary, invested to generate returns. When the rightful owners or heirs are identified, UFAA disburses the assets in accordance with legal procedures.
2. Ensure Holders Reunite with Their Assets or Surrender Them
UFAA also ensures that individuals or entities holding unclaimed financial assets either return them to their rightful owners or surrender them to the Authority. This is especially important for banks, insurers, and other institutions holding assets that have not been claimed by clients for years.
3. Inspect Unclaimed Financial Assets for Accurate Reporting
One of UFAA’s key roles is to inspect and audit financial institutions to ensure that unclaimed financial assets are accurately reported. This is done to ensure that the assets are accounted for and that no asset is left unreported, protecting the interests of the rightful owners.
4. Maintain a Comprehensive Database
UFAA keeps an extensive database of all unclaimed financial assets. This database includes information on the asset holders, ensuring that all relevant details are well-documented and easily accessible when the rightful owners come forward to claim their property.
5. Assume Custody of Unclaimed Financial Assets
When financial institutions surrender unclaimed assets, UFAA assumes full custody of these assets, acting as the interim owner until the original asset holder or their beneficiaries can be located. This ensures that the assets are protected and safeguarded against loss or misuse.
6. Make Payments from the Unclaimed Assets Trust Fund
UFAA operates the Unclaimed Assets Trust Fund, where surrendered assets are held. The authority is responsible for making payments from this fund to individuals who can prove ownership of the assets, ensuring that people regain access to what is rightfully theirs.
7. Locate and Notify Owners
One of the most critical functions of UFAA is the proactive search for the owners of unclaimed financial assets. The Authority runs various campaigns and notifications, attempting to reunite people with their assets. This is done through public awareness campaigns, media announcements, and through collaboration with various stakeholders.
8. Implement Unclaimed Financial Assets Policies and Procedures
UFAA is tasked with developing and implementing policies and procedures that govern how unclaimed assets are managed. These policies guide how financial institutions report unclaimed assets, how the public can access information on unclaimed assets, and the processes through which owners can claim their assets.
Importance of UFAA’s Work
The role of UFAA is not only to protect unclaimed financial assets but also to ensure that these assets are eventually returned to their rightful owners. This contributes to economic stability by putting dormant or forgotten assets back into the hands of the public, where they can be used for personal and community development. Moreover, UFAA’s mandate supports transparency and accountability within the financial sector, making it a critical player in Kenya’s economic ecosystem.
Unclaimed Financial Assets Authority (UFAA) Contacts
- Phone: 020 4023000, 0706866984, 0736559152
- Email: info@ufaa.go.ke
- Head Office Location: Pacis Centre, 2nd Floor, Slip Road, Off Waiyaki Way, Westlands, Nairobi
The Unclaimed Financial Assets Authority (UFAA) plays a vital role in the Kenyan financial system by safeguarding and managing unclaimed assets and reuniting them with their rightful owners. Through its numerous functions, UFAA ensures that unclaimed financial assets are protected and returned, thereby supporting individuals and contributing to the country’s economic development. The authority also serves as a critical regulator, ensuring that financial institutions comply with reporting requirements and protect their clients’ unclaimed assets.
