A 2019 report revealed that listed companies had improperly classified billions in suspense account balances as profits, misleading shareholders while their financial records remained in deficit, according to internal documents obtained by the Unclaimed Financial Assets Authority (Ufaa).
John Mwangi, who previously led audits of public and private firms, now oversees evidence of mismanagement cases as Ufaa's newly appointed chief executive. A source close to the board confirmed findings would be disclosed for corrective action, with the agency planning a name-and-shame campaign targeting defaulting entities.
Mwangi succeeded Kellen Kariuki, whose tenure saw Sh13.1 billion recovered from banks, corporations, and insurers, including 1,451 safe deposit boxes and 555.5 million shares valued at Sh40 billion. Kariuki also established regulatory partnerships requiring companies to seek Ufaa clearance for license renewals.
The Ufaa board expressed confidence in Mwangi's capabilities, stating his March 1 appointment would be supported with full institutional backing. The authority currently holds Sh13 billion in interest-bearing accounts and Sh40 billion in unclaimed securities, with owners unable to be traced.
Factors contributing to unclaimed assets include sudden deaths, name changes, incomplete records, and deliberate wealth concealment. Financial institutions transfer unclaimed funds to suspense accounts after prolonged inactivity, with one-third of insurance policies remaining unpaid due to lack of beneficiary awareness.
