Kenya Power, a state-owned electricity distributor, risks a bill upwards of KSh 1.8 Billion from the Unclaimed Financial Assets Authority (UFAA) for not surrendering unclaimed assets worth KSh 922 Million to the Authority.
These unclaimed financial assets include cash refunds to consumers for power meters, unidentified receipts, unpaid customer electricity deposits, and outstanding way leaves compensation as well as unpaid dividends.
The Auditor-General Nancy Gathungu has disclosed in her latest audit that Kenya Power is still holding unclaimed assets in its books, contrary to the UFAA Act, 2011.
She has warned that while Kenya Power says its outstanding balance will decline after it completes review and audit of all its assets, non-compliance to the UFAA Act could prove costly, forcing the utility firm to soak up a bill of more than KSh1.765 billion. This is as a result of delays in surrendering unclaimed assets.
Latest data from UFAA shows that unclaimed assets in its custody rose in value by 23% from KSh 3 Billion in 2019 to KSh 16 Billion.
These unclaimed assets are in the form of unpicked salary cheques, pension claims, matured insurance policies, cash deposits in the bank as well as uncollected royalty payments.
The UFAA Act law allows the Authority to charge any entity that does not surrender unclaimed assets a penalty of 25 per cent of the assets held.
UFAA also charges a penalty of between KSh7,000 and KSh50,000 for each day that the assets stayed before being submitted. Unclaimed Financial Assets include cash in a bank, shares, insurance policies, cheques, drafts, deposits for utility services or contributions to retirement benefit schemes.
The law requires holders of unclaimed assets to locate the owner and notify them that it has the asset.
A holder of unclaimed asset is required by law to make a report concerning such possession to UFFA.
Available figures indicate that as at April 2019 UFAA was holding unclaimed cash, safe deposit boxes, shares, unclaimed dividends, wages, dormant bank accounts, gift vouchers as well as matured life insurance claims.
In order to continuously remain relevant to stakeholders’ needs and expectations, the authority aims to enhance holder compliance to ensure receipt of KSh 75 billion of unclaimed assets by 2023.
ALSO READ: UFAA Takes Over 802 Million Unclaimed Shares