Tuesday 5th November, 2013. Kampala…Capital Markets Authority (CMA) is pleased to announce that Mr. Keith Kalyegira has been appointed as the new Chief Executive Officer (CEO) of the Authority. Mr. Kalyegira replaces Mr.
The Republic of Uganda became a signatory of the International Covenant on Economic, Social and Cultural Rights (ICESCR) on the 21st January, 1987. Article 9 of ICESCR requires State Parties to recognize the right of everyone to social security and social insurance. Pensions form part of social insurance programs because they pool risks with a view to pay a benefit to qualifying members as may be stated in some law or instrument creating the program. States which are signatories to ICESCR are required to recognize the right to social insurance by creating an enabling economic and legal environment which will enable the realization of the positive right.
Pensions play a fundamental role in the realization of socio-economic right by providing a replacement of income to citizens who lose their regular income owing to old age, disability or death of a wage earner in the family. The system may create a program where the sate makes direct transfers to targeted individuals, or, as in most countries in sub-Saharan Africa provide a legal mechanism which will enable individuals to insure themselves against loss of future earnings by establishing funded pension schemes. Pensions aim at achieving the following objectives, i.e. (i) consumption smoothing during the lifetime of a person (ii) insurance against longevity risks (iii) reduction of old age poverty (iv) and redistribution either between generations or from those who have to the less privileged in the society through taxes. Other secondary objectives of the pension system include enabling economic growth specifically in a given country.
A pension system should be inclusive and provide adequate, affordable, sustainable, and robust benefits. In designing a pension system specific objectives intended to be achieved by the system should be clearly analyzed and understood. This will enable development of a pension system which will address specific objectives in a given country. Some of the issues to consider include coverage and financing of the system. This paper makes a brief description of Uganda’s pension system and broadly proposes a justification for the system reform. Read more
By David B Nyakundi , Retirement Benefits Authority, Kenya