Kenya Power surrenders Ksh.100 million unclaimed assets
Kenya Power has so far surrendered Ksh.100 million in unclaimed assets to the Unclaimed Financial Assets Authority (UFAA).
An audit from the Office of the Auditor General (OAG) report had shown Kenya Power was among State Corporations holding on to the unclaimed funds illegally.
According to UFAA, the company has already repatriated millions of unclaimed assets to their legal beneficiaries following the audit.
“When they received the report, Kenya Power began the reconciliation process and they came to our offices for a meeting and we held discussions,” said UFAA Acting Manager for Unclaimed Asset Line Beatrice Chelagat.
Further, UFAA said it has received receipts of repatriated cash from the utility firm affirming the reunification of the unclaimed assets.
“When they do reunification at source, they must also give us the documentation to support the monies re-unified. It is actually the work of the holder to do the reunification, we only come in when they are not able to,” said UFAA Acting CEO and Procurement Manager Jack Gumbo.
In 2020, had risked a bill upwards of Ksh1.8 billion from the UFAA for not surrendering unclaimed assets worth Ksh.922 million to the Authority.
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These unclaimed financial assets included cash refunds to consumers for power meters, unidentified receipts, unpaid customer electricity deposits, and outstanding way leaves compensation as well as unpaid dividends.
Gathungu had disclosed in her audit that Kenya Power was still holding unclaimed assets in its books, contrary to the UFAA Act, 2011.
Both private entities and State agencies are required to surrender unclaimed assets to the UFAA by November 1 every year.
The holders of the unclaimed assets are presently working to reunite the assets to beneficiaries after which remnant sums will be surrendered to the UFAA by the end of this month.
Failure to surrender the assets attracts fines including 25 percent of the value of the unclaimed assets and specific daily penalties to company managers.
As such, holders of the assets are in the 11th hour rush to surrender the funds or risk reprimanding by the regulator.
UFAA presently has over Ksh.20 billion in unclaimed assets including Ksh.20 billion in cash and 1.2 billion units of shares.