Sunday , September 27 2020
Home / Business / Kenyan firm joins Uganda’s pension sector
Covid-19 Image

Kenyan firm joins Uganda’s pension sector

Enwealth Chief Executive Officer, Simon Wafubwa. PHOTO via @EnwealthUganda

Kampala, Uganda | THE INDEPENDENT | One of Kenya’s leading independent pension administrators has joined has joined Uganda’s pension after being licensed by Uganda Retirement Benefits Authority.

Enwealth Financial services formerly operating as Liberty Pension Services in Kenya joins the liberalized pension sector in Uganda to provide retirement benefits.

Unlike National Social Security Fund, Enwealth says it will target Small and Medium Enterprise market in Uganda.  The firm has targeted the SME market in 12 other countries in Africa.

Enwealth Chief Executive Officer, Simon Wafubwa told journalist in Kampala that the small and medium enterprises which are currently underserved in Uganda.

He said small and medium enterprises employ over 2.5 million people; but due to the levels of income and lack access to information, majority of them do not have any retirement plan.

Wafubwa revealed that Enwealth has tailor-made products for this market as well financial literacy programmes to encourage the population to save more and secure their financial security in retirement.

He said customers should expect services like income drawdowns, diaspora and expatriates fund, and post-retirement Healthcare fund aimed at guaranteeing security in retirement.

“We have keenly observed the Pension industry in Uganda growing steadily under a strong regulatory regime. We are therefore committed to introducing sustainable retirement investment options that provide a regular cash-flow during retirement,” he said

Enwealth becomes the tenth pension administrators in Uganda. The pension sector had been dominated by National Social Security Fund but is gradually expanding with the creation of Uganda Retirement Benefits Authority and the liberalization of pensions.

According to Uganda Retirement Benefits Authority (URBRA), the pension sector covers only 10 per cent of Uganda’s the population or only two million people.

The pension sector is currently contributing more than nine per cent to the country’s GDP, and is projected to contribute a higher share in the near future.

The pension sector’s portfolio is now growing with NSSF recording USh9 trillion in March 2018 from USh3 trillion at inception. Other schemes are holding nearly1.6 trillion shillings.

Uganda Retirement Benefits Authority Chief Executive Officer, Martin Nsubuga said the pension sector is becoming robust with new players offering new products to the customers.

“With more players joining the market, we will see more products suited for markets that have not had access to retirement benefits before. We are also adapting to modern supervisory tools to ensure that people’s savings are secure,” he said.

The 2016 World Bank World Development Indicators report observed that Ugandans save around five percent of their monthly earnings. That according to the report is the lowest compared to 23 percent for Kenya, 13 percent for Tanzania and 18 percent for Rwanda.



Leave a Reply

Your email address will not be published. Required fields are marked *