Authority now urged to adopt AI for improved beneficiary identification and fund management

JOSEPH NG’ANG’A-KNA 

National Treasury Cabinet Secretary (CS) John Mbadi has called on the Unclaimed Financial Assets Authority (UFAA) to leverage technology to boost compliance in fund management and reunification of assets with beneficiaries. 

Mbadi stated that the Kenyan government has been driving the digitalization agenda, and the adoption of technology in the management of assets under UFAA will bring efficiency and optimize returns on the assets held by the authority. 

The CS made these re marks during a courtesy call at the UFAA office, where he explained that he is working on a pro gram to visit the State Owned Enterprises (SOEs) under the ministry to understand their operations, listen to their challenges, and foster collaboration to enhance their performance.

Mbadi noted that the deployment of technologies like Artificial Intelligence (AI) will increase the chances of identifying and verifying beneficiaries of the unclaimed as sets. 

Once the funds are disbursed, they will help stimulate the economy and support families, as the beneficiaries engage in economic activities Records from UFAA indicate that they currently hold approximately Sh65.2 billion in unclaimed assets, with a total of 33,923 claimants having been paid Sh2.3 billion to date. 

“The main objective of UFAA is to reunite the beneficiaries with the as sets that were left behind by their loved ones and your achievement and success is anchored on that,” Mbadi highlighted. 

The CS reckoned that it is not an easy job to reunite the beneficiaries with their assets since the institutions that are transfer ring these assets to UFAA as unclaimed are themselves unable to reunite these individuals with the assets. 

The CS pledged to sup port UFAA to enhance re unification of unclaimed assets as he assured them of his full support and that of his ministry saying they will work as a team to see that they achieve their mandate. 

UFAA Chairman Fran cis Kigo Njenga said the authority initiated a voluntary disclosure programme through the Finance Act 2022 which incentivized holders to report and surrender un claimed financial assets. 

“Through this initiative, a total of Sh4.5 billion, which is the single-year and highest-ever remittance by holders was achieved with an additional 157 million units of unclaimed shares also re ported,” Njenga said. 

He explained that the Authority developed the Unclaimed Financial As sets Management System (UFAMS) that facilitates online reporting by holders, backend processing, and tracking of claims.

Njenga said that the Authority has put in place several payment options to disburse payments to rightful owners such as through banks, Sacco’s, mobile money, and cheques. 

“The Authority established customer service desks at UFAA Head Office and at Huduma Centres in Nairobi County. In addition, we have established a call center, self-service USSD (*361#), and an e-Citizen-based portal to supplement our customer experience touchpoints,” the chairman said. 

He highlighted that the Authority has been investing the Fund in line with the approved investment policy statement (IPS) and ensuring their safe custody. 

“The Authority won the National Wage Bill Ac countability Award for adherence to the Public Finance Management (PMF) Act and Regulations, Financial Accountability, and most improved towards 35 per cent on wage against revenue, and mainstreaming productivity during the National Wage Bill Conference, 2024,” Njenga said. 

According to Njenga, the Authority has established partnerships with key stakeholders like the Ministry of Interior, the Institute of Certified Public Accountants of Kenya (ICPAK), the Institute of Certified Investment and Financial Analyst (ICIFA), the Central Bank of Kenya (CBK), the Capital Markets Authority (CMA), the Insurance Regulatory Authority (IRA), the Communication Authority (CA), Sacco Societies Regulatory Authority (SASRA), the Retirement Benefits Authority (RBA), Huduma Kenya Secretariat, the Office of the Auditor General among others, to facilitate the implementation of areas of mutual interest with our stakeholders and enhance service delivery. 

Njenga said UFAA has developed and begun implementing their Strategic Plan 2023-2028 which underpins the enabler role of the UFAA under govern ment BETA’s finance and production sector through the aggregation, securitisation, and socialisation of the unclaimed financial assets for the shared national socio-economic prosperity of the country. 

“We are also targeting to increase the reunification rate to about 20 per cent annually, of unclaimed financial assets with the rightful owners,” he said adding that the Authority is considering options of converting non-cash unclaimed assets such as shares and contents in declared safe deposits to cash equivalents.