NAIROBI, Kenya – A comprehensive audit has revealed that public and private entities across Kenya are illegally holding onto an estimated KSh 330 billion in unclaimed financial assets, in direct violation of the law. The report, released by Auditor-General Nancy Gathungu, exposes a significant compliance gap, highlighting that the Unclaimed Financial Assets Authority (UFAA) has received only a fraction of the total idle funds.

According to the audit findings dated Monday, 27 October 2025, the UFAA held only KSh 65 billion of a total estimated KSh 397 billion in unclaimed assets by August 2024. This discrepancy underscores the systemic failure by thousands of institutions—from banks and insurance companies to government parastatals and universities—to surrender these funds as mandated by the Unclaimed Financial Assets Act of 2011.

Widespread Non-Compliance and Hefty Penalties

The Unclaimed Financial Assets Act requires all entities, referred to as 'holders', to report and remit any financial asset that has been dormant for a specified period. This includes dormant bank accounts (five years), matured insurance policies (two years), unpaid wages (one year), and uncashed dividends (three years). The goal is to transfer these assets to the UFAA, which is tasked with safeguarding them and reuniting them with their legitimate owners or beneficiaries.

The Auditor-General's report details significant enforcement challenges. In a recent compliance sweep, audits of 134 companies identified KSh 12.2 billion in unremitted assets. However, the penalties levied for non-compliance have become a point of contention. The law permits the UFAA to impose a penalty of 25% of the asset's value, plus a daily fine of between KSh 7,000 and KSh 50,000 for continued delay.

These stiff penalties have led to disputes, discouraging some holders from surrendering the assets. For instance, CIC Insurance was fined KSh 999.6 million for failing to remit KSh 1.4 billion, while Equity Bank faced a KSh 249.7 million penalty. In a more extreme case, Carbacid Investment was fined KSh 30.8 million for holding just KSh 1 million. The Auditor-General noted that such punitive measures have inadvertently slowed down the recovery process.

The Impact on Kenyan Citizens and the Economy

The withheld KSh 330 billion represents a vast pool of idle capital that belongs to ordinary Kenyans, deceased estates, and forgotten corporate accounts. These funds include everything from forgotten M-Pesa balances, which account for over KSh 3.2 billion, to university caution money, unpaid supplier invoices, and matured insurance policies. Public universities are among the major holders, with the University of Nairobi alone holding an estimated KSh 2.3 billion in such assets.

For citizens, the process of reclaiming assets, even those already surrendered to the UFAA, can be cumbersome. A previous report by the Auditor-General pointed out that 90% of unclaimed assets are valued at less than KSh 1,000. The cost and bureaucracy involved in making a claim—such as lawyer's fees for document certification and travel expenses—often outweigh the value of the asset, discouraging many from pursuing their funds. This has resulted in a low reunification rate, with the UFAA having paid out just over KSh 2 billion from more than 30,000 successful claims.

Economically, these idle funds represent a missed opportunity. If brought back into circulation, they could stimulate economic activity, increase liquidity in the financial system, and provide much-needed capital to individuals and families.

UFAA's Mandate and the Path Forward

Established in 2011, the UFAA's core mandate is to receive, safeguard, and reunite unclaimed assets. The authority manages a trust fund where all surrendered assets are held and invested in government securities until claimed. To check for unclaimed assets, Kenyans can use the UFAA's online portal by searching with their name or ID number.

The claiming process requires submitting specific forms, certified identification documents, and a letter from the original holder confirming the remittance of the asset to UFAA. The authority has been conducting public awareness campaigns and partnering with Huduma Centres to decentralize its services and simplify the claims process.

Following the Auditor-General's latest report, pressure is mounting on both the UFAA to enhance its enforcement and reunification strategies and on non-compliant institutions to adhere to the law. The report serves as a critical call to action to unlock billions of shillings belonging to the Kenyan public, ensuring the funds are returned to their rightful owners and contribute productively to the nation's economy.