Equity Group, CIC, Moi University fined Sh1.5 billion over unclaimed assets

Equity Group, CIC Insurance, and Moi University have been fined a combined Sh1.5 billion over unclaimed assets. The three institutions are among 20 firms who have been fined a combined Sh2.2 billion the Unclaimed Financial Assets Authority (UFAA).

According to the Auditor General Nancy Gathungu, these firms have been fined for failing to transfer unclaimed assets to UFAA.

CIC Insurance has taken the heaviest fine of Sh999.6 million. The insurance firm failed to transfer Sh1.4 billion to the UFAA. Equity Group came in second with a fine of Sh249.7 million while Moi University received a fine of Sh211.3 million.

The unclaimed assets that these firms failed to transfer to UFAA Kenya include dividends, shares, savings, and insurance claims, and overpaid tuition fees and caution money. In total, the fines meted out on the twenty firms amounted to Sh2.2 billion against unclaimed assets of Sh5.1 billion.

“The audit established that failure to close compliance audits was due to imposition of heavy penalties on holders for the assets identified during compliance audits, thereby discouraging holders from remitting assets to the [Unclaimed Financial Assets Authority],” the Auditor General stated.

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Some of the fines meted out by UFAA were however disproportionate. For instance, Carbacid Investment which is a gas-making company that is listed on the Nairobi Securities Exchange was fined Sh30.8 million for failing to transfer Sh1 million to the authority.

The University of Nairobi was fined Sh66.8 million even though it had failed to transfer Sh2.3 billion in unclaimed financial assets.

In addition, Moi University Retirements and Benefits Scheme was fined Sh11.6 million for failing to transfer Sh29.7 million to the authority. Maseno University was fined Sh74.5 million for failing to remit Sh40.6 million while Pioneer Assurance was slapped with Sh131 million in fine for failing to remit Sh246.5 million. Pacis Insurance received fines of Sh10.1 million for failing to transfer Sh6.2 million unclaimed financial assets.

According to the Auditor’s report, UFAA had contracted three compliance auditors for the job that targeted 134 companies and unclaimed financial assets worth Sh12.2 billion that had not been transferred.

The auditors charged the authority Sh416.3 million whereas the authority charged the targeted companies a combined Sh318.8 million for the auditing works. Out of the charges billion that had been given out to the companies, the Auditor’s report noted that only Sh94.5 million had been collected by UFAA as at August 2024.