Ugandan electricity company Umeme has issued a notice to dozens of Kenyan investors, urging them to collect dividends that have accumulated to millions of shillings over the years. Umeme, a cross-listed entity on both the Nairobi and Uganda securities exchanges, has disbursed a cumulative total of Kshs14.6 billion in dividends since 2018, establishing itself as one of the leading dividend-paying firms in regional exchanges.
The company identified 585 shareholders with pending dividends but did not disclose the specific amount attributed to these unclaimed payouts. According to the notice issued by Umeme, shareholders or their nominated beneficiaries are encouraged to contact the Share Registrar, Custody & Registrar Services (Uganda) Limited, to update their payment records.
Kenyan investors, both individual and institutional, have increasingly shown interest in opportunities within the Ugandan market. Firms such as Umeme and listed telecommunications companies, known for their stable dividend policies, have attracted keen attention from these investors seeking viable returns.
Umeme’s cross-listing on the Nairobi Securities Exchange (NSE) in December 2012 marked a pivotal moment, breaking the trend where only Kenyan firms were involved in cross-listing across East African markets. Subsequently, the Rwandan lender Bank of Kigali followed suit, joining the NSE in November 2018.
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Unlike Kenya, Uganda lacks a centralized agency for unclaimed financial assets such as dividends. While Ugandan laws permit banks to deposit unclaimed balances with the Bank of Uganda, there is currently no provision for unclaimed dividends. Efforts are being considered by the Ugandan government to establish an authority for unclaimed assets.
Consequently, it falls upon respective companies to trace and notify owners of unclaimed dividends, who are then required to lodge claims with the share registrars of these firms.
In Kenya, the Unclaimed Financial Assets Authority (UFAA) has received remittances totaling Kshs 53.4 billion from various institutions to date. The authority has disbursed Kshs 1.9 billion to 27,107 claimants. The bulk of these funds remain held in stocks, with other substantial amounts held by insurers, banks, pension schemes, law firms, mobile money wallets, and Saccos, among others.
Unclaimed dividends and shares often result from owners failing to provide details of their next of kin or beneficiaries during the acquisition of these assets. Moreover, incorrect mailing addresses contribute to the accumulation of unclaimed dividends.
Umeme’s notice serves as a reminder to Kenyan investors to ensure they claim their rightful dividends, highlighting the significance of maintaining updated records and ensuring accurate beneficiary information to facilitate seamless payouts and prevent the build-up of unclaimed assets.
