Share depository rejects Ksh400B claim over transfer of abandoned shares worth Ksh95B

The Central Depository and Settlement Corporation (CDSC) has denied a report claiming that transferring abandoned shares to the Unclaimed Financial Assets Authority (UFAA) would incur fees of Ksh400 billion. A clarification issued on October 30, 2026, stated that the Ksh200 transfer fee applies per account, not per share, contradicting a local newspaper report.

The corporation noted that its fees are regulated by the Capital Markets Authority (CMA) and specified in the Central Depositories (Regulation of Central Depositories) Rules. CDSC emphasized that the transfer fee is not tied to the number of shares held, disputing the reported KSH 400 billion estimate. The clarification comes as UFAA aims to manage unclaimed investments by consolidating abandoned shares into its custody.

CDSC maintained that its charges are governed by established regulations, rejecting the estimated cost of Ksh400 billion to transfer approximately 2.03 billion abandoned shares worth Ksh95 billion. The newspaper had indicated that UFAA would need Ksh400 billion to move the shares into its custody, citing a per-share transfer fee of Ksh200.

However, CDSC clarified that the applicable transfer fee is Ksh200 per account, making the number of shares in an account irrelevant to the transfer charge. The dispute revolves around the consolidation of unclaimed shares by UFAA, held across various financial institutions. CDSC stated that reconciliation and transfers continue monthly, supported by CDSC and other market players.

UFAA, led by CEO Laban Molonko, had previously expressed concerns to the National Assembly’s Finance and National Planning Committee about the lack of direct control over the shares. The clarification clarifies the dispute over transfer costs but does not specify the exact number of accounts involved or the total fees applicable to the proposed consolidation.