Kenya’s Unclaimed Financial Assets Authority (UFAA) is reminding companies that there is a deadline of November 1 to surrender all unclaimed financial assets to the authority, and that failure to remit them will attract a penalty of 1% above prime rate per month per annum.
Earlier, there was a report that as at August 8.73 billion worth of assets had been surrounded, but that the UFAA was having difficulty finding the owners.
An asset will be declared unclaimed where one or more of the following requirements are met:
- The records of the holder do not reflect the identity of the person entitled to the assets;
- The holder has not previously paid or delivered the assets to the apparent owner or other person entitled to the assets;
- The last known address of the apparent owner is in a country that does not provide by law for passage of property to the State where there is no owner or is not applicable to the assets and the holder is a permanent resident in Kenya.
Some unclaimed assets include items left in safe deposit boxes (after two years), unclaimed salary (after one year), ownership interest, dividends (3 years) and deposits after utilities (like Kenya Power after 2 years). Some unclaimed assets are created by red tape by stubborn custodians who have made it difficult for people or companies to rightfully claim their own assets.
Kenya goes for a repeat presidential election on October 26. The country conducted general elections on August 8, but the Supreme Court invalidated the presidential election in which the electoral commission (IEBC) had declared incumbent President Uhuru Kenyatta as the winner, and instead ordered a fresh election be done within sixty days.
August also saw two other major elections in Africa; On August 4, Rwandans re-elected President Paul Kagame as he was the choice of 99% of the nearly seven million voters. Meanwhile, in Angola, elections were held on August 23. President Jose dos Santos was not in the running as he was stepping down and they were won by João Lourenço, the Minister of Defense and Vice-President his party.
Elsewhere: Togo is to have a referendum on a bill that limits the term of the President; also a bill has been introduced in Uganda’s parliament to remove a 75-year age limit for the President (Yoweri Museveni is 73 now), and Liberia is to have an election on October 10 that will usher in a new President after Ellen Johnson-Sirleaf, who in 2005 became Africa’s first elected female leader,
The Institute of Chartered Accountants in England and Wales (ICAEW) published a report they did with advisory firm Oxford Economic on Africa economic insights for Q3 of 2017.
Kenya: The leaders who take office in Kenya after the October 26 presidential poll will need to reign in expenditure to improve the economy’s prospects according to ICAEW.
The report states that the new government will need to take a number of steps to revive the economy following the October 26th vote. A start would be to rethink the regulatory cap on commercial interest rates, which has starved small and medium enterprises of funding. Reining in expenditure, in order to ensure government debt does not get out of hand, would improve the economy’s future prospects. Furthermore, the newly elected government will need to lead the charge against corruption.
Rwanda: President Kagame’s re-election is expected to result in the continuation of business-friendly policies to boost entrepreneurship.
Tanzania: The operating environment in Tanzania is becoming increasingly complicated due to President Magafuli’s economic nationalism.
Ethiopia has lifted a state of emergency that was in place for 10 months, and there is a risk that social unrest may keep disrupting the state led development that has produced the country’s economic boom. Still, real GDP growth is forecast to come in at the very impressive rate of 7.1% in 2017.
Nigeria, & Angola: The two big oil producers, Nigeria and Angola, have continued to deal with the effects of a much lower oil price: foreign reserves are hard to come by, which complicates the operating environment for all firms, especially those that need imports. In both countries inflation is falling but still high, interest rates remain high and the governments have been cautious with their spending, meaning government expenditures have not contributed to the economy.
Ghana: Ghana’s continued participation in the International Monetary Fund (IMF) Extended Credit Facility (ECF) programme has been characterised by significant uncertainty ever since the New Patriotic Party (NPP) took the reins by defeating the National Democratic Congress (NDC) in the 2016 elections. Real GDP growth is expected to exceed 6% in 2017, driven by higher oil output and a recovery in consumer demand. International reserves also received a healthy boost due to robust foreign appetite for longer dated government securities. Finally, authorities have made significant progress with the implementation of the banking system roadmap. There are several reasons, to think that the operating environment is set to improve.
Ivory Coast, Ivory Coast is experiencing similar problems as a consequence of a fall in cocoa prices, and political risk sporadically takes the form of mutinies by soldiers, but its economy is still set to grow by 6.9% in 2017.
South Africa: South Africa continues to hold back growth in Southern Africa, although the regional giant has emerged from recession with positive quarterly GDP growth in Q2.
Senegal: Senegal is forecast to boast comparable output growth (6.8%) – thanks mostly to infrastructure spending undertaken as part of the Plan Emerging Senegal (PSE).
Zambia is forecast to show real GDP growth of 3.3% thanks to improved performances in the agriculture and industrial sectors.
The ever-stable Botswana and Mauritius are expected to record stable growth of 4.1% and 3.8%, respectively. The smaller economies in the region continue to feel the effects of a severe drought last year, and South Africa’s weak economy.
- The Supreme Court rules for presidential petitions were tried and tested in 2013.
- Virtually every Kenyan is affected by some unresolved judiciary court case, whether it’s a commercial dispute, employment, land, traffic, inheritance, bank loans and so on.
- Disputes between borrowers and banks should not drag on for so many years that they incur legal, penalty and interest charges that eventually exceed many times the initial loan amount. From my notes while reading Charles Hornsby’s Kenya: A History since Independence, “15 petitions followed the 1969 elections and they were heard by Euro and Asian judges (Njonjo’s decision) – 3 were successful.” … “39 petitions followed the 1974 elections, and 9 MPs lost their seats, with 4 barred from contesting for 5 years.”… “The 1979 elections had no observers…31 petitions were heard by non-African judges and 9 MP’s (including 3 ministers) lost their seats”
- This year is expected to be no different and the Deputy Chief Justice was quoted as saying the courts were expecting as many as 300 petitions following the August 8 election.
Yesterday, the final results of the August 8, 2017, Kenya elections (electionske2017) were announced by the Independent Electoral and Boundaries Commission (IEBC).
This came with the announcement of the presidential results that were delayed by challenges and agreement on the tallying and transmission of the results that were a spillover of lengthy discussions and court cases (the IEBC chairman said they had 200 court cases) on independent candidates, political party petitions, procurement, electronic gadgets, ballot papers, as well as the brutal murder of the IEBC technology manager just a week before the election.
Uhuru Kenyatta declared President elect after attaining 8,203,290 (54.27%) votes
— IEBC (@IEBCKenya) August 11, 2017
These were the fourth national elections in ten years (2007,2013, 2017 and a constitutional referendum in 2010) and they were closely contested in many places. Besides choosing a new president, 15 million Kenyans also voted on their choice for governor, senator, councilor (MCA), member of parliament (MP), and a county women’s representative from among 14,500 candidates.
But even after the results, there are expectations that dozens of petitions will be filed at the courts on Monday for determination.
— Joyce Nyairo (@jnyairo) August 11, 2017
- Opinion polls were reported in Kenya. They have been widely derided for not accurately predicting the outcome of races and for contradicting each other. This could be due to misunderstandings by Kenyans about what polls mean, and sampling methods used, especially in rural Kenya.
- Elsewhere, Charles Hornsby, author of the classic must-read Kenya: A History Since Independence -did a series of election prediction posts in June and early in August that were based on his September 2016 prediction of a 55-45 victory for Kenyatta over the (yet to be chosen at that time) opposition candidate remains plausible. He later revised this; I still predict a Jubilee victory by 52% for Kenyatta and Ruto to 48% for Odinga and Musyoka, with all others less than 1% combined.
- Another was a research report by Citibank (Citi) published in early August: On Thursday we hosted a call with Richard Kiplagat, COO of AfricaPractice, to talk through political scenarios. Mr. Kiplagat takes the view that 1) the polls are very close but give a slight edge to the President; 2) the victor is likely to win outright in the first round, given limited support for third party candidates; 3) while the outcome may be disputed initially, the Supreme Court is likely to certify the outcome by September 10th, a judgment that could well be accepted by the loser; 4) widespread or prolonged violence is unlikely this time around, due in part to devolution of the 2010 constitution and in part to the ethnic balance of the incumbent presidential/vice presidential ticket.
What happens next?
For President: The date of the swearing-in of the president constitutionally depends on if there are any petitions
- Petitions are filed with 7 days after declaration of results
- If a petition is filed, the Supreme Court hears and gives a determination within 14 days
- The President-elect is sworn in the first Tuesday following the 14th day if no petition has been filed or the 7th day following the date which the court renders a decision
For Governors transition rules
— Dennis Itumbi (@OleItumbi) August 10, 2017
For Members of Parliament: The 12th parliament i.e the national assembly and the senate are to have their first sitting, not more than thirty days after the elections (tentatively not later than September 8, 2017).
Also, see other electionske2017 posts about: