Members of Parliament have expressed dissatisfaction over what they described as poor investment decisions involving pension funds managed by Rwanda Social Security Board (RSSB), warning that low returns are eroding the real value of retirees’ benefits amid rising living costs. The issue was raised on Monday, May 18, during a session in which the Parliamentary Committee on Social Affairs tabled before the Lower Chamber its report on the analysis of the Auditor General’s special audit into the management of the pension branch covering the period between July 2015 and March 2025. ALSO READ: Retirees upbeat as pension benefits increase by 61% Presenting the committee’s findings, Chairperson Veneranda Uwamariya said pension funds had been invested in projects that failed to deliver meaningful returns. “The pension funds were invested in projects which do not generate significant returns in the pension insurance sector,” Uwamariya told lawmakers. According to the report, RSSB invested Rwf239.4 billion in 15 projects, representing 15.4 per cent of total pension assets. Of this, Rwf114.5 billion was invested in 10 domestic projects, while Rwf124.9 billion went into five foreign projects. However, the committee noted that in the past five years, nearly all projects failed to generate returns, except for one foreign investment. ALSO READ: Retirees’ body appeals for matching pension with cost of living The report further highlighted structural weaknesses in investment governance, including weak documentation and limited risk analysis. Out of 48 companies in which RSSB invested in, 36 had no documents outlining the investment framework. Among 10 companies that submitted documentation, seven failed to clearly define investment objectives, expected returns, or risk tolerance levels. The audit also showed that RSSB’s pension investments, valued at Rwf1,550 billion as of June 30, 2024, have consistently underperformed against targets. While the long-term objective was set at a 15 per cent annual return, actual performance over the past decade ranged between 3.7 per cent and 6 per cent, including the impact of inflation. ALSO READ: Public pension assets grow 34% as contributions rise Equity investments failed Equity investments performed even lower, generating returns between 0.2 per cent and 4 per cent. Uwamariya noted that some investments were undertaken without sufficient analysis.“Some investment projects were carried out without in-depth analysis.” The committee observed that such weaknesses, combined with large allocations to underperforming assets, risk undermining the long-term sustainability of the pension fund. It recommended strengthening investment governance, improving compliance with investment policy, enhancing risk analysis, and improving reporting systems to safeguard members’ long-term interests. Deputy Chairperson Christine Mukabunani said the committee further recommended that the Ministry of Finance and Economic Planning submit to Parliament, within three months, a roadmap outlining how outstanding pension contribution arrears will be recovered. MP Théogène Munyangeyo said pension investments should be aligned with approved business plans and expected performance targets, warning that some projects were not delivering as anticipated. He argued that when evaluating investment performance, factors such as inflation and depreciation should be taken into account, noting that under normal conditions, acceptable limits are around 8 per cent. “If a project was expected to generate a 15 per cent return, but currency depreciation is running at 13 per cent — well above the usual rate of around 8 per cent — the real value of that return is significantly eroded. In such conditions, the investment effectively stops being profitable,” he said. Weak oversight Munyangeyo also questioned the Ministry of Finance’s oversight role, asking why stronger action was not taken earlier despite its involvement in approving investment decisions through relevant governance structures. He noted that the ministry had indicated in the report that it would intensify efforts going forward, but challenged the timing of such measures. “The Ministry of Finance and Economic Planning said it is going to put in more effort. What made them not do it before?” he asked. Munyangeyo stressed that investment processes pass through boards and relevant government institutions, arguing that oversight mechanisms should be strong enough to detect errors at an earlier stage. He said pension funds belong to Rwandans and must be carefully managed to avoid losses and protect beneficiaries. Munyangeyo also called for a clear distinction between commercially driven investments and those undertaken for public interest, noting that the two should not be treated the same in performance evaluation. “There are projects the government must invest in for the public good, but these should be clearly separated from commercially driven investments” he said. He further highlighted concerns over the adequacy of pension benefits, citing examples of former senior officials receiving relatively low monthly pensions. “A former minister or secretary general — someone who once held one of the highest positions in government — can retire on a monthly pension of as little as Rwf180,000,” he said. He argued that pension management systems should ensure benefits remain balanced with the cost of living to protect retirees’ dignity and purchasing power.
