ICPSK calls for better administration of unclaimed assets

By Macharia Kamau

There is a renewed push to have a legal and policy framework to help the country manage unclaimed assets.

Currently, unclaimed assets and property are governed by scattered clauses in different laws, which analysts say have failed to manage the vast amounts held by different firms because they have not been claimed by their owners or beneficiaries. Currently, there is a draft unclaimed assets Bill, which was formulated late 2008, but is yet to be tabled in Parliament. It is estimated banks, insurance firms, pension schemes, utility companies and listed firms hold in excess of Sh200 billion in unclaimed assets.

These are in terms of uncollected dividends for listed firms, dormant accounts in banks, utility deposits and unsettled insurance claims. Others include uncollected pensions and former employee benefits.

"The issue of unclaimed assets is a growing concern. The Sh200 billion is a conservative figure, the actual amount might be much more. There are enormous amounts of money that remain in the hands of these institutions," said Joe Mbuthia, chairman of the Institute of Certified Public Secretaries of Kenya (ICPSK).

Big issue

"Unclaimed dividends is an issue, because of the many retail investors who have small shareholding in many firms. They get dividends of under Sh500, which at times seem uneconomical to collect."

The institution said the Government should set up a trust fund to track and centrally manage unclaimed assets held by the different institutions.

ICPSK has further recommended to the Government to amend various laws that govern unclaimed assets, including the Capital Markets Act.

"The purpose of the amendment is to entrench such a management scheme for unclaimed assets, while they are at the holding institutions," said Mbuthia.

"The laws should provide for the identification, reporting and remitting of unclaimed assets."