Senators have launched an investigation into why the Unclaimed Financial Assets Authority (UFAA) is holding onto Ksh 8.8 billion worth of unclaimed assets, even though the rightful owners have been identified. The probe was initiated by the Senate Finance and Budget Committee, chaired by Mandera Senator Ali Roba, following questions raised by nominated Senator Gloria Orwoba about the whereabouts of the funds.
Orwoba, during a session in the Senate, alleged that more than Ksh 10 billion of Kenya’s unclaimed assets had been misappropriated by UFAA. She also raised concerns about the Ksh 500 million spent on audits by the authority.
“Please explain to us the outstanding Ksh 8.8 billion,” Orwoba demanded, adding, “Investigate discrepancies regarding unclaimed funds amounting to Sh10 billion that cannot be accounted for, given that only Ksh 1.5 billion out of Ksh 11.5 billion has been accounted for, and state any measures the Board has taken against the management in the supervision of the audit.”
Kisii Senator Richard Onyonka also sought clarification on why it had taken UFAA so long to identify the owners of the unclaimed assets, even though the owners had already been identified.
“Please tell us the criteria that you use to identify the owners,” Onyonka requested. “Also, tell us in your estimation the total unclaimed assets in Kenya.” The investigation comes after UFAA admitted that, of the Ksh 11.5 billion in unclaimed assets identified from 134 public and private institutions, only Ksh 1.53 billion has been accounted for, and Ksh 1.09 billion has been remitted directly to its rightful owners.
UFAA’s acting CEO, Caroline Chirchir, acknowledged the remaining balance of Ksh 8.8 billion but emphasized that the authority is actively engaging with the institutions holding the funds.
While defending the authority’s efforts, Chirchir highlighted measures put in place to enhance transparency, including quarterly internal audits, external audits by the Auditor General, and regular asset recovery reports to its Board of Directors.
“We have identified Ksh 11 billion, and only Ksh 1 billion has been remitted, while another Ksh 1 billion was returned at source to the rightful owners,” Chirchir explained. “There is an outstanding Ksh 8.8 billion.”
Chirchir further explained that UFAA began compliance audits in 2017/2018, covering 134 institutions. The audits, which cost Ksh 416.4 million, were conducted according to open national tendering processes under the Public Procurement and Assets Disposal Act. The audits identified Ksh 11.5 billion in unclaimed assets.
Despite these efforts, Chirchir disclosed that UFAA has faced significant challenges in recovering unclaimed assets. A 2017 baseline report estimated that the total amount of unclaimed assets in Kenya stands at Ksh 241 billion, but the authority has struggled with inadequate staffing to push institutions to remit unclaimed funds.
“The challenges we face include the voluminous evidence required from institutions, which demands extensive review, as well as the retrospective nature of unclaimed assets,” Chirchir said. “We are also constrained by limited staff—only three people are currently handling compliance issues. Some institutions are simply not responsive to our demand notices.”
Chirchir also noted that under the Unclaimed Financial Assets Act 2021, UFAA has the authority to inspect records to determine compliance but lacks the resources to do so effectively.
Despite the setbacks, UFAA has pledged to continue working with institutions to recover the remaining unclaimed assets. Senators have urged the authority to expedite its efforts and provide clearer accountability for the billions of shillings still unaccounted for.
