Pension benefits paid to retirees, under the mandatory scheme, increased by 61 per cent to Rwf43 billion in the first half of 2025 compared with the same period last year, according to the National Bank of Rwanda (BNR). The figures were presented on August 21 during a press briefing on the Monetary Policy Committee (MPC) and Financial Stability Committee (FSC) findings. ALSO READ: Six things you should know about new pension reforms In the first half of 2024, the Rwanda Social Security Board (RSSB) paid out some Rwf26 billion to retirees. Shelagh Kahonda, Executive Director of Financial Stability Supervision at BNR, attributed the 61 per cent increase to recent reforms to the mandatory pension scheme, which have seen increments in pension contributions. Kahonda said pension reforms that took effect in January 2025 led to a rise in the overall contributions to the fund, which are made by both employees and employers for retirement. The reforms doubled the pension contribution rate from 6 per cent of an employee’s basic salary to 12 per cent of their gross salary. “As a result, alongside the increment in the contributions, there was also an increment in what the benefits would be for the retirees,” she said. Kahonda stated that the reforms were introduced partly to improve retirees' welfare, with those in the category that was receiving the smallest pension getting the highest increment rate. “But as we move forward, we anticipate that this will even increase alongside the contributions that are being made,” she added. Kahonda observed that the reform was also designed to ensure the fund's long-term sustainability and to support Rwanda’s broader economic growth. “So, the fund is anticipated to remain sustainable and able to meet all its obligations and expectations, despite the growing benefits that are being paid out,” she said. ALSO READ: Pension contributions: Gov’t to spend Rwf45bn more for public servants 'Good impact' Dorothée Uwimana, chairperson of the Rwanda Pensioners' Association, welcomed the development, saying that it had brought significant relief to retirees, particularly those who were receiving the minimum pension. Figures from RSSB show that the minimum pension a Rwandan retiree gets more than doubled from Rwf13,000 to Rwf33,710 as part of the reform. “The increase has had a good impact. For many pensioners, especially those who got the minimum, their benefits almost tripled. This was a major change, and pensioners are very happy,” Uwimana told The New Times, stating that retirees are grateful to the government and all stakeholders involved in the development. She said that the improved pension payouts had positively impacted retirees' living conditions, particularly in areas such as nutrition and healthcare. “The increase in pension benefits has allowed retirees to better meet their basic needs. While the benefits have not yet fully kept pace with the cost of living, there has been clear progress,” Uwimana said. Healthcare access, a major concern for the elderly retirees, has also improved as a result, she indicated. “Retirees often suffer from chronic diseases. The increase in pension benefits is helping many afford treatment and manage their medical expenses.” She added that the pensioners’ association would continue to advocate further adjustments. “What’s most encouraging is that [the government] promised to continue increasing pension benefits. Every five years, they will assess the performance and resources of the pension fund and allocate additional support to retirees,” she said. BNR Governor Soraya Hakuziyaremye said that the public pension fund continues to grow, with assets increasing by 26 per cent to Rwf2 trillion between June 2024 and June 2025. She added that benefits for pensioners have also risen, which enhances pensioners’ welfare. According to RSSB data, a total of Rwf53 billion in pension benefits was paid to just over 58,000 beneficiaries during fiscal year 2023/2024.
