Having had a presence in the financial industry for the last 50 years, Dfcu Bank has now set eyes on becoming a player in the pension sector once the liberalisation materialises, which is a merit for not only workers but the country.
The bank’s managing director, Mr Juma Kisaame, told journalists last week at one of the many golden jubilee fetes, that the pensions sector needs more players in the market so that workers’ money fetches more returns than what it is the case with the monopoly of government’s National Social Security (NSSF). “There is a lot of merit if the pensions sector is liberalised,” Mr Kisaame said. NSSF’s total assets as of March this year grew to Shs3.9 trillion. But Mr Kisaame said if this money is redeployed cautiously once the sector has been opened up to more than one player, it could yield even bigger and will even reduce the increased borrowing from regional/international banks, like the European Investment Banks.
“Right now if you issue Bill Bonds, the only player is NSSF” because they have so much money but which is lying idle. He, however, added that the liberalisation of the pension scheme does not mean NSSF should be suffocated completely.
The Retirement Benefits Sector Liberalisation Bill 2014, was envisaged to include the private sector in the pension operations and also provide workers with several options to save for their retirement other than the NSSF, which is currently the only option.