Parliament has cleared the way for detailed scrutiny of a draft law seeking to amend the legal framework governing the EjoHeza Long-Term Savings Scheme. Lawmakers approved the relevance of the bill on Friday, March 27, paving the way for its examination by a parliamentary committee before it returns to plenary for debate and a final vote. ALSO READ: EjoHeza reforms make retirement saving realistic for informal workers Growth amid persistent challenges Established under a 2017 law, EjoHeza was designed to extend retirement savings opportunities to Rwandans and foreign residents not covered by mandatory pension schemes. Since its launch, the scheme has registered more than 4.3 million members, mobilised over Rwf53.7 billion in savings, and accumulated total assets worth Rwf79.5 billion, including interest and government contributions. ALSO READ: EjoHeza saving scheme: What changes are proposed in new draft law? Despite these gains, the government says uptake and consistent participation remain a challenge, necessitating reforms. A key concern is the low frequency of contributions, with many members saving irregularly or only once. In addition, a widespread perception that savings are “locked” until retirement has discouraged participation, particularly among households facing immediate financial pressures. ALSO READ: What proposed EjoHeza reforms mean for informal workers Existing provisions also restrict early access to savings, allowing withdrawals only under specific conditions such as housing, education, or loan guarantees. Officials say these requirements have excluded many potential beneficiaries. What the draft law proposes The proposed amendments seek to make the scheme more flexible and responsive to savers’ needs. One major change is the removal of strict justification requirements for early withdrawals. Members would be able to access part of their savings without having to meet conditions tied to specific uses, subject to regulations to be set by the Minister in charge of finance. The bill also broadens the circumstances under which benefits can be accessed. These include reaching the age of 55, death, disability or illness leading to loss of membership, permanent departure from Rwanda for foreign members, or voluntary partial withdrawals. In addition, the reforms propose shifting authority over access modalities, such as withdrawal limits and procedures from the regulator to the finance minister through ministerial orders, a move expected to streamline implementation. According to the explanatory note, the proposed changes are intended to boost public confidence in the scheme, enable members to address urgent financial needs without abandoning long-term savings, and encourage more regular contributions. At a broader level, the reforms are expected to strengthen financial inclusion, increase domestic savings, and reinforce Rwanda’s social protection framework.
