Kenya’s financial system is relatively developed for a country at its income level and also compared with many other Sub-Saharan African countries. The financial system comprises of numerous commercial banks, non-bank financial institutions, a range of insurance companies and a stock exchange. A three-fold growth in the number of commercial banks has taken place in Kenya over the last thirty years. Similarly, there has been a phenomenal growth of non-bank financial intermediaries and the insurance industry has also experienced a rapid expansion, both in terms of numbers and services offered. The country also has thousands of savings and credit associations to which most Kenyan workers belong and which have become important avenues for mobilization of savings. Furthermore, unlike many other Sub-Saharan African countries, the Kenyan economy is highly monetized with the monetary sector contributing for nearly 95 percent of the country’s Gross Domestic Product (GDP) and broad money (defined as narrow money plus savings deposits) being nearly 42 percent of GDP in 1993 and when deposits with non-bank financial institutions are included this ratio rises to nearly 58 percent. This ratio is significantly higher than for most Sub-Saharan African countries where the subsistence sector remains essential.

Reference

http://repository.uneca.org/handle/10855/4926

Brief description of financial assets and examples

A financial asset is a tangible liquid asset that gets its value from a contractual claim. Cash, stocks, bonds, bank deposits and the like are examples of financial assets. Unlike land, property, commodities or other tangible physical assets, financial assets do not necessarily have inherent physical worth.

Examples

Ownership interest (Shares and Dividends) 3 Years

Travelers cheques/money holders 2 Years

Cheques, draft or similar instruments 2 Years

Demand, Savings or matured time deposit 5 Years

Life or endowment Insurance Policy or Annuity contract 2 Years

Deposit for utility services 2 Years

Determination or Order by Court of refund by holder 2 Years

Assets from dissolved business entity 2 Years

Assets held in fiduciary capacity 2 Years

Gift certificates or credit memos 5 Years

Unpaid wages 1 Year

Assets held in safe deposit box 2 Years

Assets held by court or Government department 1 Year

REFERENCE

Click to access Unclaimed-Financial-Assets-Act-by-CEO-UFAA-FCPA-Kellen-Kariuki.pdf

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