Kenya’s Ruto praises Uganda’s saving culture
Kenya's President William Ruto. PHOTO | SILA KIPLAGAT | NATION MEDIA GROUP
What you need to know:
- The NSSF managing director, Mr Richard Byarugaba, in a statement said Mr Ruto’s acknowledgement is profound and shows that the Fund is now a reference point in the social security sector across East Africa.
Kenyan President William Ruto has praised Uganda for its saving culture irrespective of its small economy.
Addressing a Kenya Kwanza parliamentary group meeting in Naivasha, Kenya, on Friday, Mr Ruto said although Uganda has a smaller economy than theirs, the National Social Security Fund (NSSF) has continued to be a huge pension scheme. “Uganda has a bigger pension scheme than ours and a smaller economy. So we have to change. Our professionals working with the people from NSSF will be here tomorrow morning (last Saturday) so that we can take you through what we need to do,” Mr Ruto said.
He said savings provide the resources for investment.
Mr Ruto added that Kenya is among the least savers in Africa, and urged its citizens to change the mindset.
“Today we have savings of maybe Kshs1.5 trillion, which is very small. It is not even a tenth of the savings of Uganda. So we will take you through the motions so that we are all clear because we have no option but to change this country and we are the people who are going to change it,” the Kenyan president said.
NSSF’s reaction
The NSSF managing director, Mr Richard Byarugaba, in a statement said Mr Ruto’s acknowledgement is profound and shows that the Fund is now a reference point in the social security sector across East Africa.
“It is not by accident that NSSF Uganda is the biggest social security Fund by value in East Africa. The Fund has grown by more than 900 percent from about Shs1.7 trillion in 2010 to Shs17 trillion today mainly because we set out to create the most efficient Fund in East Africa,” Mr Byarugaba said.
He said the NSSF Amendment Act gives them opportunities for growth through expansion of social security coverage, new products and voluntary savings.
“It is a challenge we are excited about and count on the support of our members and stakeholders,” Mr Byarugaba said.
The Fund covers all employees in the private sector, including NGOs that are not covered by the government’s pension scheme. It receives contributions from employees and employers.
It also manages assets worth more than Shs13.7 trillion invested in fixed income, equities and real estate assets within the East African region.
