Business
Uganda’s pension fund – The National Social Security Fund to invest in Kenya stocks
All Ugandan employers with more than five workers are required to remit 15 percent of each employee’s monthly salary to the fund as social security savings to be redeemed upon retirement, set at 55 years.
Some struggling employers, however, often fail to remit the worker contributions and the fund has traditionally struggled to enforce compliance.
Byarugaba said he had changed the pension fund’s investment model, putting more money into high yielding, longer-term government paper instead of short term. The National Social Security Fund cut back its deposits in commercial banks, he said.
“Also, we’re planning to start buying Kenyan treasury paper,” said Byarugaba.
Last year, the country’s president, Yoweri Museveni revealed his government was looking to borrow about US$400 million to finance construction of roads. Byarugaba said the loan was likely to be budgeted for in the financial year to June 2014.
