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Kampala, Uganda | THE INDEPENDENT | Britam Asset Managers Uganda has introduced a children’s investment plan that allows families to start saving with as little as Shs20,000, as it seeks to encourage long-term financial planning among Ugandan households.
The product, known as KidNest, comes at a time when many Ugandans save regularly but struggle to translate those savings into long-term investments.
According to the 2023 FinScope Uganda survey, 60% of adults aged 16 and above were saving, with regular household expenses cited as the most common main reason. However, more than seven in ten respondents lacked concrete long-term financial plans.
Britam says the new product is intended to help parents, guardians and other family members invest towards their children’s future needs while introducing them to financial planning at an early age.
Offered through the company’s Money Market Fund, KidNest requires an initial investment of Shs20,000, with optional additional contributions starting at Shs10,000. There is no compulsory contribution schedule, allowing families to invest according to their financial circumstances.
Peace Gakwaya, Chief Executive Officer of Britam Asset Managers Uganda, said the initiative seeks to encourage families to begin planning for their children’s future even when they have limited disposable income.
“Families are balancing immediate needs with plans that may take years to achieve. Starting an investment for a child creates an opportunity to plan for those goals early and give contributions time to benefit from compounding. It also opens the door to conversations about financial choices and discipline. Our ambition is to help build an investment culture in Uganda where children grow up understanding how to plan, invest consistently and assess their progress.”
The introduction of KidNest reflects a growing focus among financial institutions on encouraging households to move beyond short-term savings towards investments linked to specific financial goals.
For many families, however, competing household expenses can make regular contributions difficult. Britam has sought to address this challenge by allowing investors to make additional contributions whenever they have money available, rather than requiring fixed monthly payments.
The company says families can use the investment to work towards goals ranging from purchasing a bicycle or learning a new skill to financing education or supporting a future business.
Children can also participate in choosing their investment goals and monitoring progress, an approach Britam hopes will help them understand financial decisions from an early age.
Unlike conventional savings accounts, KidNest provides access to Britam’s professionally managed Money Market Fund, which invests in a diversified portfolio of low-risk, short-term interest- bearing instruments.
The fund seeks to preserve investors’ capital while generating returns. However, capital preservation is an investment objective rather than a guarantee, and returns are not assured.
The product has no lock-in period, allowing families to access their investments when needed. This flexibility could be particularly relevant to households balancing longer-term financial goals with immediate expenses.
Parents, grandparents, guardians, godparents and other well- wishers can contribute towards a child’s investment. Britam also encourages families to consider investing money received through gifts and allowances.
The product has been introduced under Britam’s “Get Ready for Bigger” campaign, whose “Bigger Dreams” theme seeks to encourage families to connect their ambitions with financial planning
