Retirement Savings Hit UGX 7.6 Trillion Mark

1783 Views Kampala, Uganda

In short
Most of this is under the mandatory National Social Security Fund NSSF with 700,000 contributors and a financial value of close to seven trillion Shillings.

Contributory savings, from both the formal and informal sectors, have swelled to 7.6 trillion Shillings, up from 5.2 trillion Shillings in 2014, according to Finance Minister Matia Kasaija.

Most of this is under the mandatory National Social Security Fund - NSSF with 700,000 contributors and a financial value of close to seven trillion Shillings.

In a statement read for him by David Bahati, the state minister for planning, Kasaija said that with Uganda Retirement Benefits Regulatory Authority (URBRA) in place, the retirement savings sector is growing by leaps and bounds with a high potential of boosting the economy.

The minister cited the 64 formal sector schemes, mainly by government agencies, and the two informal schemes, Kacita and Mazima Trust, as proof of the growth of the sector. He was speaking at the launch of a nationwide campaign to encourage savings for old age dubbed ZaabuLife.
 
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Kasaija said the challenges the country is facing like high interest rates and low investment is because of a poor savings culture.
 
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The Board Chair of URBRA, Andrew Kasirye, said an estimated 17 million Ugandans employed both formally and informally qualify for retirement savings.

According to Kasirye, starting to save early for old age is very important, citing some retirees who are suffering financially because they never had such saving opportunities.
 
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Kasirye said URBRA is now in a robust position to regulate the retirement savings sector to ensure contributors' savings are not abused.
 
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The Chief Executive of URBRA, David Nyakundi Bonyi, said interest in retirement savings schemes is growing, adding that the public should now rest assured that the sector is safe and sound.
 
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While the Kampala City Traders' Association (KACITA) scheme will be launched this Friday, the Mazima Trust has been there for a while and now has over 500 contributors, most of who are from the informal sector.
 

 

About the author

David Rupiny
In his own words, David Rupiny says, "I am literally a self-trained journalist with over 12 years of experience. Add the formative, student days then I can trace my journalism roots to 1988 when as a fresher in Ordinary Level I used to report for The Giraffe News at St Aloysius College Nyapea in northern Uganda.


In addition to URN for which I have worked for five years now, I have had stints at Radio Paidha, Radio Pacis, Nile FM and KFM. I have also contributed stories for The Crusader, The New Vision and The Monitor. I have also been a contributor for international news organisations like the BBC and Institute for War and Peace Reporting. I am also a local stringer for Radio Netherlands Worldwide.


I am also a media entrepreneur. I founded The West Niler newspaper and now runs Rainbow Media Corporation (Rainbow Radio 88.2 FM in Nebbi). My areas of interest are conflict and peacebuilding, business, climate change, health and children and young people, among others."