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KACITA Retirement Scheme Targeting One Million Contributors

The Kacita Uganda Provident Fund is one of just two informal retirement benefits schemes registered by the Uganda Retirement Benefits Regulatory Authority URBRA, the other being Mazima Voluntary Individual Retirement Benefits Scheme. Kacita chairperson Everest Kayondo says they are targeting 10,000 contributors in the first year of operation with the long-term target being one million contributors.

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The Chairperson of Kampala City Traders Association (KACITA), Everest Kayondo, says the informal pension scheme they are creating is targeting at least one million contributors.

According to Kayondo, even before full operation they are inundated with inquiries and requests from eager potential contributors.

The KACITA Uganda Provident Fund is one of just two informal retirement benefits schemes registered by the Uganda Retirement Benefits Regulatory Authority (URBRA), the other being Mazima Voluntary Individual Retirement Benefits Scheme.

The informal schemes target people employed in the informal sector, who form the biggest number of people in gainful employment in Uganda. They will deposit whatever amount of money they are capable of at whatever time they feel like.

The other 62 formal schemes are created by employees of government agencies, big businesses and non-governmental organisations.

Kayondo says they are targeting 10,000 contributors in the first year of operation with the long-term target being one million contributors.

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The KACITA scheme was launched in March but is yet to become operational.

According to Kayondo, contributions to the scheme will be via mobile money, adding that the delay is mainly due to prolonged preparedness by the mobile money service providers.

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Kayondo says as KACITA they are by and large ready to roll out the scheme.

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Speaking in an earlier interview with Uganda Radio Network, the Chief Executive of URBRA, David Nyakundi Bonyi, said they focused on reaching as many informally employed people as possible because majority of them are not on retirement benefits schemes.

According to Bonyi, retirement contributions with schemes licensed and regulated by URBRA are safe and secure because elaborate systems have been put in place to safeguard the savings.

The Minister of State for Planning, David Bahati, recently told different forums that there is at least 24 trillion shillings in retirement and pensions savings, of which seven trillion shillings is held by the National Social Security Fund (NSSF) alone.

The Retirement Benefits Sector Liberalisation Bill, 2011, if passed will create the legal framework for expansion of the pensions sector.

Although the government had initially wanted to open up NSSF and make the civil servants pension scheme contributory, it has since reneged on that move preferring to leave them untouched while promoting new ones.

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