Kenyan banks have shut down a staggering 78.7 million dormant accounts, freezing billions of shillings in unclaimed deposits and idle balances. The sweeping cleanup, driven by regulatory pressure from the Central Bank of Kenya, targets accounts that have recorded no transactions for extended periods.
Why the Mass Closure?
The Central Bank of Kenya has been pushing commercial lenders to tidy up their books and improve the accuracy of financial inclusion data. Many of the dormant accounts were opened during the mobile banking boom, when telcos and banks raced to sign up customers — but a significant number of those accounts were never actively used.
According to banking industry data, some accounts held as little as a few shillings, while others contained substantial balances that had simply been forgotten by their owners.
What Happens to the Money?
Funds held in dormant accounts are not lost. Under Kenyan law, banks are required to hold unclaimed balances in trust and publish notices inviting account holders to claim their money. If accounts remain unclaimed after a specified period, the funds are transferred to the Unclaimed Financial Assets Authority (UFAA).
The UFAA maintains a public registry where Kenyans can search for unclaimed assets, including bank deposits, insurance policies, and pension benefits.
What You Should Do
If you have not used a bank account in over a year, it may have been flagged as dormant. Account holders are advised to check with their banks or search the UFAA database to recover any funds. Reactivating a dormant account typically requires presenting valid identification and completing a verification process at your branch.
