IRA tips collective investment schemes as safer bet for retirees

KAMPALA: The Insurance Regulatory Authority (IRA) has tipped Collective Investment Schemes (CISs) as a safer and more sustainable investment option for retirees, as it unveiled the fifth edition of the Annual Insurance Week and the 2025 Insurance Innovation Awards.

Speaking at the launch in Kampala on Tuesday, Mr Protazio Sande, the IRA Director for Strategy and Market Development, said CISs are increasingly providing Ugandans — particularly retirees — with an opportunity to earn steady returns without the burden of directly managing businesses or property.

“Collective Investment Schemes are playing a crucial role in building a savings culture and creating a national pool of affordable capital,” Mr Sande said.

He noted that returns on CISs are currently averaging between 11 and 13 per cent per annum, making them an attractive option for individuals seeking predictable income streams after retirement.

Mr Sande encouraged Ugandans holding idle fixed assets such as land to consider liquidating them and investing in regulated financial instruments, including insurance-linked schemes, to improve liquidity and secure steady cash flow for daily and long-term needs.

“When you convert idle assets into financial investments, you enhance liquidity and ensure that you have money available for both daily expenses and future security,” he said.

The renewed push for CISs and other insurance products comes as the regulator intensifies public sensitisation efforts through Insurance Week, which will run from March 19 to 26, 2026, at Lower Constitutional Square in Kampala, alongside regional activations in Gulu, Mbale and Mbarara cities.

This year’s theme, “Future eri ku sure ne Insure,” underscores the industry’s message that insurance and structured savings products are key to securing one’s financial future.

Mr Sande said many of the products currently on the market are outcomes of the annual Insurance Innovation Awards, which are designed to reward creativity and promote the development of solutions tailored to emerging consumer needs.

He added that innovation initiatives have improved the visibility of insurance services, leading to increased public engagement. This, he said, is reflected in the rising number of cases handled by the IRA complaints bureau.

“As awareness grows, more people are coming forward to seek clarification and lodge complaints where necessary. That is a positive sign because it shows confidence in the regulatory framework,” he said.

IRA Chief Executive Officer Mr Jonan Kisakye said Insurance Week will also be used to sensitise motorists about the recently introduced Motor Third Party Insurance digital sticker, which is aimed at curbing fraud and improving compliance.

“We want members of the public to come to the event centres, interact directly with insurers and regulators, and understand developments such as the digital motor third party sticker and other reforms in the sector,” Mr Kisakye said.

He added that taking Insurance Week activities to regional cities is part of a broader strategy to extend insurance education beyond Kampala and deepen penetration across the country.

Another IRA official, Mr Kaddunabbi Ibrahim Lubega, said the week-long activities are intended to bridge the gap between insurers and the public, noting that many Ugandans remain sceptical or unaware of the benefits of insurance and structured investment products.

“This provides us with an opportunity to engage directly with the public, address misconceptions and demonstrate that insurance is accessible and relevant to all Ugandans,” Mr Lubega said.

Insurance Week will feature exhibitions, public dialogues, on-the-spot complaint resolution, and product showcases from various insurance and financial service providers. The event will also include medical camps and participation by government agencies such as the Uganda Revenue Authority and the National Identification and Registration Authority.

Industry leaders say strengthening uptake of insurance and collective investment products will not only secure individual futures but also mobilise long-term domestic savings to finance national development.

As the sector positions itself as a key pillar in Uganda’s financial ecosystem, regulators are betting on innovation, public engagement and structured investment vehicles like CISs to drive the next phase of growth.