The Unclaimed Financial Assets Authority (UFAA) will send out auditors to private and public institutions to confirm the correctness and completeness of reports and assets submitted for the just-ended reporting period.
The Unclaimed Financial Assets Act, 2011, requires holding entities to submit a report and assets presumed abandoned on or before the first day of November of each year.
A financial asset is considered unclaimed when no transactions have been performed or no instructions given over a period of time. The Act has set different periods within which different financial assets can be declared dormant, and hence unclaimed, from one year for unpaid wages to five years for bank accounts.
A total of Sh1.6 billion had been surrendered to the authority by Wednesday, bringing the total in UFAA’s custody to Sh5.1 billion. This is a 46 per cent increase from Sh3.49 billion surrendered as at September 30, 2015.
A post-retirement medical fund has been launched to cater for medical expenses of retirees who cease enjoying benefits of the employer medical fund. The Salama Post-Retirement Medical Fund allows members to save while in employment and have their medical expenses paid from the fund upon retirement. The fund, which has been set-up as a multi-employer post-retirement medical fund, is the first of its kind in Kenya. Salama Post-Retirement Medical Fund Board of Trustees Chairman Patrick Weke said a multi-employer post-retirement medical fund is a relatively new concept in the country, with only two other individual funds being operational within the security organs. Pinebridge Investments East Africa has been appointed to serve as the investment Fund Managers while KCB Bank has been appointed as the custodians to hold title of the assets of the Fund.