Uganda’s pension sector is set to become more competitive with the launch of Kampala City Traders Association (KACITA) – Uganda Provident Fund Scheme – TEGEKA which targets to mobilize savings and investment capital from over 65,000 registered members.
The Fund, which provides a new vehicle of saving for traders and other practitioners in the informal sector, is licensed and regulated by the Uganda Retirement Benefits Authority (URBRA. It was launched on Friday morning at Hotel Africana, Kampala.
The Retirements Benefits Authority Act, 2011 requires that the scheme sponsor appoints qualified trustees to oversee the management of the scheme under the close supervision of the Uganda Retirements Benefits Regulatory Authority (URBRA), and the trustees in turn appoint a custodian, Administrator and Fund Manager to run the scheme under their supervision.
KACITA-Uganda Provident Fund has trustees including Dr. Gudula Naiga Basaza (chairperson), Dr. Agnes Apea Atim, Apollo Makubuya, Simon Ssekankya and Everest Kayondo.
The scheme is administered by ICEA Life Assurance Company Limited, while Housing Finance is the Custodian Bank. The Fund Managers are Stanlib Uganda Limited.
Speaking during a media briefing on the Fund, Everest Kayondo said that membership and contribution to the scheme was voluntary and anyone above 18 years was eligible to join.
“We also have a provision for those below 18 years to have supplementary accounts run by their guardians under the rules and conditions of the scheme. Our target is to tap into the over 200,000 member catchment area of traders and those in small and medium size employments in Uganda”.
The minimum contribution for saving is Shs3, 000 and there is no ceiling. The deposits can be made anytime according to the convenience of the contributor.
“This is a voluntary contributory scheme where any person with income can save regardless of whether he/she is self-employed or formally employed by either government institutions or the private sector because the contribution is restricted to natural persons and therefore companies as legal persons are not eligible to contribute to the scheme but the scheme membership is open even to those individuals that are already contributing to NSSF and other licensed retirement schemes.”