The National Construction Authority (NCA) in Kenya has issued a notice requiring registered contractors to identify and surrender unclaimed financial assets, including funds and other assets that have remained unclaimed for years. Contractors have until November 1, 2026, to search through their financial records and hand over the assets. The NCA reminded contractors of their statutory obligations under the Unclaimed Financial Assets Act, 2011.
The directive applies not only to assets that became unclaimed after the Unclaimed Financial Assets Act, 2011, came into force but also to those that became unclaimed before the law took effect, where the circumstances meet the requirements of the law. Contractors must examine their past financial transactions to establish whether they are still holding assets belonging to people or businesses that can no longer be reached.
The category of unclaimed assets includes dormant bank accounts, unpaid salaries, SACCO funds that have not been collected, unpaid insurance policies, and dividends that remain unclaimed. In the construction industry, such assets can arise from money retained from subcontractors or suppliers during defect liability periods. The funds may remain uncollected after a business closes, moves elsewhere, or loses contact with the person or company entitled to the money.
Contractors are expected to transfer the assets to the Unclaimed Assets Trust Fund Account at the Central Bank of Kenya and submit information identifying the owners of the assets through the Unclaimed Financial Assets Authority (UFAA) website. Those who fail to comply with the directive could face fines and other penalties under Section 33 of the Unclaimed Financial Assets Act.
The government, through the Unclaimed Financial Assets Authority, holds and safeguards such assets before they are returned to their rightful owners or their families. Recent UFAA reports show that the authority is holding more than Sh106 billion in unclaimed assets, with about Sh44 billion held in cash and the remaining amount held in shares.
The NCA's move aims to ensure that contractors comply with the law and return unclaimed funds to their rightful owners. The authority has set a deadline of November 1, 2026, for contractors to complete both the transfer of qualifying assets and the required reports. Contractors who miss the deadline risk facing penalties.
Unpaid wages and salaries belonging to labourers who did not receive their full payments may also qualify as unclaimed assets. The NCA's directive is a reminder to contractors of their responsibility to identify and report unclaimed assets. The authority's efforts to recover unclaimed funds will help reunite people with their lost assets.
Key points
- Contractors in Kenya have until November 1, 2026, to return unclaimed funds.
- The National Construction Authority requires contractors to identify and surrender unclaimed financial assets.
- Unclaimed assets in Kenya total over Sh106 billion.
