(Kampala) – The Makerere University Retirement Benefits Scheme (MURBS) announced an interest rate of 13.40% for its members during the 14th Annual General Meeting held on October 24, 2024. The meeting took place at the School of Public Health Auditorium on Makerere University’s main campus and was led by Dr. Elizabeth Patricia Nansubuga, Chairperson of the Board of Trustees.
The AGM brought together various stakeholders, including trustees, the Audit Committee Chairperson CPA David Ssenoga, Board Evaluation Consultant Vincent Kaheeru, and representatives from the Uganda Retirement Benefits Regulatory Authority (URBRA), among others.
Dr. Nansubuga highlighted that this interest rate marks the highest declared by the scheme in the past five years. She noted that last year, the interest declared was 12.34%. Furthermore, she reported that the scheme achieved a Net Investment Income of UGX 44.6 billion, significantly higher than the UGX 34.4 billion collected in contributions during the same period.
The fund’s total value increased from UGX 352.4 billion at the end of the previous financial year to UGX 409.2 billion, reflecting a growth of 16.1%. Dr. Nansubuga expressed optimism for continued improvements, attributing the growth to several factors, including enhanced debt recovery, operational efficiency, and timely contributions from Makerere University, which serves as the scheme’s sponsor.
In addition to financial performance, Dr. Nansubuga reported a legal victory for MURBS against the Uganda Revenue Authority (URA) regarding a real estate investment in Sonde made in 2019. The URA had previously sought to impose a tax of UGX 600 million on this investment, but MURBS successfully contested this assessment and was awarded costs, setting a legal precedent.
The governance structure of the scheme also saw updates, with the Board expanding from six to seven trustees. CPA Edina Rugumayo was appointed as the new trustee, bringing over thirty years of experience in accounting and corporate governance.
Dr. Nansubuga acknowledged the contributions of Makerere University in ensuring the smooth operation of the scheme and thanked other stakeholders for their support. She reported a 4.4% increase in membership, growing from 8,229 to 8,590 members, a result of reinstating in-house beneficiaries and expanding project staff.
Dr. Godwin Kakuba, Secretary of the Board of Trustees, emphasized the importance of holding annual meetings, noting that the Board has consistently attended all AGMs for 14 years. He commended the sponsor for timely remittance of member contributions, which has been crucial for the scheme’s growth.
The independent auditor, Asad Ssenoga, expressed satisfaction with the scheme’s compliance and the accuracy of the financial statements presented. He noted that all member contributions were properly documented and allocated.
Mark Lotukei, representing URBRA, praised the trustees for prioritizing governance, which he described as vital for the scheme’s progress. He urged the Board to continue these good practices.
Some members at the AGM, including Arthur Kibira, encouraged the Board to consider higher-risk investments for potentially greater returns, expressing concern over the scheme’s heavy reliance on government bonds. Dr. Nansubuga acknowledged these suggestions, noting that while 86% of funds are currently invested in government bonds, the Board is exploring diversification to reduce risk.
