Shs200b added on pension sector annually - URBRA

Mr Martin A. Nsubuga the (URBRA) acting chief executive officer. COURTESY PHOTO 

In Summary

• According to a 2016 World Bank World development indicators report, Ugandans save around 5 percent of their monthly incomes, the lowest record in comparison to other East African countries such as Kenyans who save up to 23 per cent.
• Tanzanians and Rwandans save up to 13 and 18 per cent, respectively.

By MARTIN LUTHER OKETCH

Uganda’s pension sector on average receives Shs200b annually, according to Uganda Retirement Benefit Regulatory Authority (URBRA).

Speaking during the launch of Enwealth Financial Services, a new financial service provider in Kampala last week, Mr Martin A. Nsubuga the (URBRA) acting chief executive officer, said the pension sector has evolved faster than anticipated, thus necessitating a regulatory framework to guide the industry.

“Uganda’s pension sector is growing at an average of 20 per cent. At last Shs200b is added in the sector annually,” he said, adding that the sector has grown to a total portfolio of Shs11 trillion.

Enwealth, which offers pension retirement training and consultancy, was founded in Kenya in 2011, and currently manages pension assets in the excess of Sh2 trillion shared among 120 clients.

Mr Simon Wafubwa, the Enwealth managing director, said the pension sector has grown steadily, requiring sustainable investment options that provide a regular cash-flow such as income drawdowns, diaspora and expatriates fund and post-retirement healthcare fund to guarantee security in retirement.

The company, he said, will target corporate entities as well as small and medium enterprises that have not put serious focus on guaranteeing savings for workers’ retirement.

According to a 2016 World Bank World development indicators report, Ugandans save around 5 percent of their monthly incomes, the lowest record in comparison to other East African countries such as Kenyans who save up to 23 per cent. Tanzanians and Rwandans save up to 13 and 18 per cent, respectively.