Registered contractors have been given just over a month to search through years of financial records and hand over money and other assets that have remained unclaimed, including funds that may have been abandoned before the 2011 law was introduced.
The National Construction Authority (NCA), in a notice issued on Wednesday, September 30, directed contractors to identify all financial assets that qualified as unclaimed as of June 30, 2026, and ensure they are reported and surrendered.
The authority said the exercise should not be limited to assets that became unclaimed after the Unclaimed Financial Assets Act, 2011, came into force.
It said contractors must also consider assets that had already become unclaimed before the law took effect, where the circumstances meet the requirements of the law.
"The National Construction Authority (NCA) wishes to remind all registered contractors of their statutory obligations under the Unclaimed Financial Assets Act, 2011, relating to the identification, reporting and remittance of qualifying unclaimed financial assets," NCA stated.
The authority further reminded contractors and other holders that older assets cannot be left out simply because they became unclaimed before the legislation was enacted.
"Contractors and other holders are further reminded that the assets to be reported should also include assets that were deemed to be unclaimed before the commencement of the Unclaimed Financial Assets Act, 2011, where applicable," it added.
As part of the directive, contractors are expected to examine their past financial transactions and establish whether they are still holding assets belonging to people or businesses that can no longer be reached.
Any assets that meet the legal definition must be transferred to the Unclaimed Assets Trust Fund Account at the Central Bank of Kenya.
Contractors will also be required to submit information identifying the owners of the assets through the Unclaimed Financial Assets Authority (UFAA) website.
The NCA has set November 1, 2026, as the final date for contractors to complete both the transfer of qualifying assets and the required reports.
Those who fail to comply with the directive could face fines and other penalties under Section 33 of the Unclaimed Financial Assets Act, the authority said.
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.
Unpaid wages and salaries belonging to labourers who did not receive their full payments may also qualify as unclaimed assets.
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. About Sh44 billion is held in cash, while the remaining amount is reportedly held in shares.