Why Kenyans Are Not Claiming Ksh65B Assets Held by Govt 

Hello and welcome to the Money News Roundup Newsletter, where we cover why Kenyans have not claimed Ksh65 billion at the Unclaimed Financial Assets Authority (UFAA). We also cover new proposals to ban insurers from rejecting claims over expired licenses or unpaid premiums.

Why Kenyans Are Not Claiming Ksh65B Assets Held by Govt 

According to a report by the Auditor-General Nancy Gathungu, high costs associated with claiming small amounts, including travel and document certification, are discouraging Kenyans from filing claims with the Unclaimed Financial Assets Authority (UFAA).

Data shows that nearly 90% of Ksh65 billion in unclaimed assets, including cash, shares, and dividends, are worth less than Ksh1,000.

Claimants are required to submit certified identification documents, which cost Ksh500 to process. Additionally, they are required to physically visit asset holders for verification letters, making the process time-consuming and uneconomical for low-value assets.

The audit report also highlighted that 17.7 million of the 20 million idle assets recorded by UFAA as of June 2024 fall under this low-value category, with over 12.3 million worth less than Ksh100.

The Auditor-General noted that UFAA’s proposal to simplify claims through a single standardized, self-signed form without legal certification has yet to be implemented by the National Treasury. 

As reported by Business Daily, the audit also urged the authority to expand its presence in Huduma Centres to decentralize services and increase reunification rates.

As of August 2024, only 4% of unclaimed assets had been reunited with their rightful owners. The small balances are mostly the result of forgotten bank accounts, dormant mobile money wallets, relocations, and deaths.

Nairobi-Mau Summit Contractors Seek Tax Reliefs as a Promise for Lower Toll Fees

The consortium of China Road and Bridge Corporation (CRBC) and the National Social Security Fund (NSSF), selected to build the Ksh170 billion Nairobi–Nakuru–Mau Summit Highway, is seeking extensive tax reliefs, including a 30-year corporate income tax exemption on toll revenues.

As reported in the Business Daily, the group argues the waivers will make the project more bankable and keep tolls affordable. Their 18 tax relief requests include exemptions from VAT, import duty, excise duty, and withholding tax, alongside county levies. 

However, the government insists negotiations must proceed under the existing tax regime, with any adjustments considered later. The proposed toll rate is Ksh8 per kilometer, adjustable for inflation. The Treasury remains cautious about the requests amid Kenya’s tight fiscal position.

Meanwhile, the Star reports that President William Ruto has announced plans to extend the Nairobi–Nakuru–Mau Summit highway to Kericho, Kisumu, Eldoret, and the Malaba border to boost connectivity across Western Kenya. 

Speaking in Nakuru, he said the project, set to begin next month, will be implemented through a Public-Private Partnership (PPP) model to ease pressure on the national budget. 

Equity Bank and CIC Among Firms Fined Billions For Withholding Kenyans' Assets 

At least 20 firms, including CIC Insurance and Equity Bank, have been fined a total of Ksh2.2 billion for failing to remit unclaimed assets such as dividends, savings, and insurance claims to the Unclaimed Financial Assets Authority (UFAA). 

Auditor-General Nancy Gathungu revealed that CIC Insurance faced the largest penalty of Ksh999.6 million for not transferring Ksh1.4 billion, followed by Equity Bank (Ksh249.7 million) and Moi University (Ksh211.3 million). 

Other fined institutions include Pioneer Assurance, Pacis Insurance, Carbacid Investments,  the University of Nairobi, and Maseno University, which were penalized millions for holding idle assets. 

UFAA identified Ksh12.2 billion in unremitted assets from 134 companies, but has only recovered a fraction. Unclaimed assets exceeded Ksh75 billion in November, with less than 10% reunited with rightful owners. Read more.

Treasury Proposes Law to Ban Insurers From Rejecting Claims Over Expired Licenses or Unpaid Premiums

Passengers and motorists involved in accidents with drivers holding expired licenses will now qualify for insurance compensation under proposed Treasury guidelines aimed at curbing arbitrary claim rejections. 

The draft Insurance (Claims Management) Guidelines, 2025, require insurers to process claims promptly, ban unfair grounds for denial, and strengthen customer protection. Claims cannot be rejected for expired licenses, delayed reporting, unpaid premiums without proper cancellation, or innocent misrepresentation. 

According to the Business Daily, insurers must acknowledge claim notifications within two days and settle clear cases immediately after document verification. The rules also mandate standardized motor valuations and detailed claims-handling manuals to improve transparency and accountability. 

Kenya to Establish Sovereign Wealth Fund to Manage Oil and Mineral Revenues

The government is planning to establish a Sovereign Wealth Fund to manage revenue from minerals and petroleum, cushioning the economy against shocks and revenue fluctuations. 

According to draft legislation, the Kenya Sovereign Wealth Fund will have three components: a stabilization unit, an infrastructure investment arm, and a savings fund. The proposed law bars the funds from investments in speculative assets such as derivatives, art, unlisted real estate, or commodities, and prohibits lending to government entities.

As reported by Bloomberg, the fund’s board may appoint multiple investment managers or designate the Central Bank of Kenya as custodian and administrator.

Kenya’s move follows its first commercial oil discovery in the Lokichar Basin in 2012, alongside valuable mineral deposits including gold, titanium, soda ash, fluorspar, and gemstones.

Family Bank Set to List on NSE in 2026

Family Bank shareholders have approved plans to list the lender on the Nairobi Securities Exchange in 2026 through a listing by introduction, allowing its 1.305 billion existing shares to trade publicly without issuing new ones. 

Board Chairman Lazarus Muema said the move reflects long-term strategic preparation to create sustainable value. The bank reported a Ksh2.2 billion net profit in H1 2025, up 40% year-on-year, with assets at Ksh193 billion.

As reported in the Kenyan Wall Street, CEO Nancy Njau said the listing will enhance transparency, support growth, and strengthen investor confidence.

Govt to Privatize 5 Beaches and 4 Islands

The government plans to privatize five beaches and four islands along Kenya’s coast to boost tourism investment under the draft Kenya National Tourism Strategy (2025–2030).

 The Ministry of Tourism proposes a beach classification model—premium, family, ecotourism, and adventure—to attract different tourist segments. Exclusive beaches like Vipingo, Tiwi, Kuruwitu, and Msambweni will target high-net-worth visitors with luxury villas, golf courses, and private airstrips. 

As reported by Citizen TV, Islands earmarked for privatization include Chale, Funzi, Kiwayu, and Manda Toto.

To support this, the government will upgrade Malindi Airport to international status, expand access through regional airstrips like Ukunda and Lamu, and improve coastal road networks, aiming to enhance competitiveness and promote sustainable tourism growth.