Billions of shillings are gathering dust in state accounts as the Unclaimed Financial Assets Authority struggles to find the rightful owners.

In a shocking revelation of economic stasis, the Unclaimed Financial Assets Authority (UFAA) has confirmed it is currently holding a staggering Sh57 billion in unclaimed assets. This vast fortune, consisting of forgotten bank accounts, uncollected dividends, and abandoned insurance policies, sits idle while millions of Kenyans struggle with the cost of living. The paradox is stark: the money belongs to the people, yet the state cannot seem to give it back.

The "Low Value" Trap

The challenge of reunification is logistical and economic. Data reveals that a massive 70% of these assets are "low value," worth less than Sh5,000 each. For many Kenyans, the bureaucratic cost of claiming these funds—affidavits, transport, legal fees—outweighs the value of the asset itself. This has created a "zombie capital" problem, where billions are trapped in a regulatory limbo, unable to be reinvested in the economy.

UFAA CEO John Mwangi has previously highlighted that ignorance and death are the primary drivers. People die without a will, leaving families unaware of their savings. Others simply forget small accounts when they change jobs or relocate. "This is not just money; it is the life savings of workers, the dividends of grandmothers, and the security of families," an economic analyst noted.

• Treasury Intervention: Recognizing the crisis, the National Treasury has launched a new Technical Working Group to develop a National Policy on Unclaimed Financial Assets. The goal is to streamline the identification and recovery process, cutting the red tape that deters claimants.
• The Asset Mix: The Sh57 billion is not just cash. It includes over 1.7 billion shares valued at Sh30 billion. Banks are the biggest contributors (67%), followed by listed companies and telcos.

A Call to Action

The existence of this fund is a testament to a systemic failure in financial literacy and estate planning. But it is also a failure of the reunification framework. In the digital age, it should not be difficult to match an ID number to a bank account. The new policy push by the Treasury is a welcome step, but it must be radical.

Until the process is automated and simplified—perhaps through mobile money integration—this Sh57 billion will remain a monument to missed opportunity. For now, UFAA remains the custodian of a fortune that nobody seems to want, a silent vault in the middle of a noisy, cash-strapped economy.