Makerere Retirement Benefits Scheme Declares 12.34% Interest Amid 16.1% Growth

During the 14th Annual General Meeting (AGM) of the Makerere University Retirement Benefits Scheme (MURBS) on 24th October 2024, Chairperson Dr. Elizabeth Patricia Nansubuga announced remarkable financial achievements and governance strides for the 2023/24 financial year.

The AGM drew a diverse group of stakeholders, including Audit Committee Chairperson CPA David Ssenoga, Board Evaluation Consultant Vincent Kaheeru, and a representative from the Uganda Retirement Benefits Regulatory Authority (URBRA), Mark Lotukei.

Presenting the performance report, Dr. Nansubuga highlighted that MURBS declared a 12.34% interest rate—the highest in five years. She credited strategic fund management and operational efficiency for this achievement. The scheme reported a Net Investment Income of UGX 44.6 billion, surpassing the UGX 34.4 billion in contributions collected over the same period. The total fund value also saw a 16.1% increase, rising from UGX 352.4 billion in June 2023 to UGX 409.2 billion in June 2024.

“This growth reflects our Board’s strategic activities and the robust support from our fund managers and oversight committees,” Dr. Nansubuga stated. She acknowledged Makerere University’s consistent remittance of contributions, which has been crucial to the scheme's smooth operation.

In addition to financial success, MURBS celebrated a legal victory over the Uganda Revenue Authority (URA) concerning a tax assessment dispute related to a 2019 real estate investment in Sonde. Dr. Nansubuga shared that MURBS won the case and was awarded costs, saving the scheme UGX 600 million.

“We faced a UGX 600 million tax challenge from URA, but our persistence paid off,” she said. “This win not only saved money but also set a legal precedent.”

On governance, Dr. Nansubuga announced the addition of CPA Edina Rugumayo to the Board, expanding trustee membership from six to seven. “Edina brings over 30 years of experience in accounting and corporate governance, ensuring our commitment to international standards,” she emphasized.

The AGM also covered investment strategies. Currently, 86% of MURBS’ funds are in government bonds, but diversification is on the agenda. “We need to reduce risk by exploring other investment opportunities,” Dr. Nansubuga noted.

Membership has grown by 4.4%, from 8,229 to 8,590 members. This increase was attributed to the reinstatement of in-house beneficiaries and the rise in project and contract staff.

Dr. Godwin Kakuba, Secretary of the MURBS Board, underscored the significance of AGM consistency over 14 years, highlighting the Board’s vigilance. Partner auditor Asad Ssenoga praised MURBS for compliance, stating, “The audited numbers presented are accurate and verified.”

URBRA’s representative, Mark Lotukei, commended the scheme’s strong governance, crucial for sustained success. Meanwhile, member Arthur Kibira suggested exploring higher-risk investments for potentially greater returns, encouraging innovation and growth in managing financial risk.

Dr. Nansubuga and her team were lauded for their diligent efforts, setting a positive tone for MURBS’ future.