Kampala, Uganda | The Makerere University Retirement Benefits Scheme (MURBS) has announced a record interest rate of 13.40% on members’ savings for the financial year 2023/2024. This marks the highest interest rate declared by the scheme in the past five years, surpassing last year's 12.34%.
Dr. Elizabeth Patricia Nansubuga, Chairperson of the MURBS Board of Trustees, shared this news during the 14th Annual General Meeting (AGM) held at the School of Public Health Auditorium on Tuesday. She expressed optimism for sustained growth, citing strategic initiatives being implemented to maintain this positive trend.
In her report to the University Council earlier in the week, Dr. Nansubuga highlighted a Net Investment Income of 44.6 billion shillings, significantly higher than the 34.4 billion shillings collected in contributions during the same financial year. The fund's value has also seen substantial growth, increasing from 352.4 billion shillings at the end of the previous financial year to 409.2 billion shillings as of June 30, 2024—a 16.1% increase.
While this growth fell slightly short of the targeted 17%, Dr. Nansubuga commended the Board and fund managers for their efforts. “As of June 30, 2023, MURBS had a fund value of 352.4 billion shillings. I am pleased to report that, according to the Audited Financial Statements as of June 30, 2024, the fund value is now 409.2 billion shillings,” she said.
Dr. Nansubuga noted that 86% of MURBS’ funds are currently invested in government bonds but emphasized the need for diversification to mitigate risks. “Having such a high concentration of funds in government securities poses material risks. We aim to diversify our portfolio and explore other investment avenues to reduce this risk,” she stated.
Professor Barnabas Nawangwe, Vice Chancellor of the University, encouraged the MURBS Board to consider investing in the Makerere Martial Plan, which focuses on developing university land across the country. Dr. Nansubuga assured that the Board would evaluate the proposal and its associated risks.
Mark Lotukei, representing the CEO of the Uganda Retirement Benefits Regulatory Authority (URBRA), praised the trustees for prioritizing governance, which has enabled them to achieve several milestones. Member Arthur Kibira urged the management to consider higher-risk investments for potentially greater returns.
