Marketing and communication firm WPP Scangroup has surrendered Sh27 million unclaimed dividends to the Unclaimed Financial Assets Authority.

The surrender by the NSE-listed firm was made across its 2022 and 2021 financial years and covers unclaimed payouts in both the group and subsidiaries.

“Unclaimed dividend amounting to Sh23 million was remitted to Unclaimed Financial Assets Authority during the year (2021: Sh4 million). Dividend declared and paid in the group includes dividend paid to minority shareholders in respective subsidiaries,” WPP Scangroup noted.

The higher surrender last year coincided with the moratorium on penalties and fines handed over to holders of financial assets through the 2022 Finance Act with the view of encouraging the releases.

Subsequent to the waiver on penalties, the UFAA revealed Sh3.9 billion in record surrenders that sent the value of unclaimed financial assets to Sh57.5 billion as at December from Sh48.4 billion in June.

The unclaimed assets include Sh27.3 billion in cash, Sh1.2 billion shares and 3,661 safe deposit boxes.

Dividends fall under the custody of the UFAA when records of the holder fail to reflect the identity of the person entitled to the assets or when the holder has not previously paid or delivered the assets to the perceived owner or entitled person, according to the UFAA Act.

The dividends would also be deemed abandoned if the owner changes their last known address to a country that does not support the remittance of the assets or lacks comparable unclaimed assets laws.

Owners of unclaimed dividends are entitled to receive dividends, interest or other income realised or accruing on the assets before the liquidation or conversion of the assets into money.

By making the surrenders, WPP Scangroup has avoided penalties, including daily fines ranging from Sh7,000 to Sh50,000 for failing to pay or deliver the idle assets.

The UFAA recently disclosed plans to overhaul the unclaimed assets law to lessen penalties levelled on holders of unclaimed assets.

“Holders have been complaining about stiff penalties which if you calculate as per the Act the penalties sometimes exceed the value of the assets, which would be unconstitutional,” UFAA managing trustee John Mwangi stated.