UGX 31.85Tn24.7%
Member fund grew by 24.7% to UGX 31.85Tn (FY2024/25: UGX 25.55Tn) driven by contribution collections of UGX 2.42Tn and interest credited to members of UGX 5.44Tn net of total benefits paid of UGX 1.55Tn.
Accumulated member fund
Our approach to tax
Protecting members' savings is our foremost fiduciary responsibility, and as such our tax strategy is guided by a commitment to responsible tax practices. The Fund’s tax strategy is aligned with the broader organisation compliance and risk management objectives, recognising that effective tax governance safeguards the Fund’s reputation and protects members interests.
The Fund is keen to build a culture of tax awareness as well as keep staff abreast with the latest trends and best practices in Tax. As such, staff sensitisation and awareness sessions are undertaken to improve staff understanding of key areas of taxation, including Pay As You Earn (PAYE), Withholding Tax (WHT), and Value Added Tax (VAT).
Tax governance, control and risk management
The Fund maintains a structured tax governance and control framework to identify, assess, and manage tax risks in a timely manner. Monthly reconciliations are carried out across all our major tax obligations to ensure that potential instances of non-compliance are identified and addressed immediately.
To reinforce this framework, the Fund set internal performance timelines for filing tax returns and settlement of tax liabilities. Monthly tax returns are filed by the 10th day of the following month, and tax payments are made before their respective statutory due dates.
As part of the annual external audits, tax compliance and assurance checks are undertaken to assess the Fund’s overall tax compliance position and provide formal recommendations for improvement.
Tax reporting
During the year under reporting, the Fund's total income tax expense amounted to UGX 337.87Bn (301.54Bn direct + UGX 36.33Bn deferred tax liability) and UGX 12.55Bn in indirect tax. Based on our regional investment jurisdiction, the largest share of income tax expense is attributed to Uganda UGX 270.94Bn, while tax expenses in other countries were as follows Kenya UGX 26.96Bn, Tanzania UGX 3.55Bn, and Rwanda UGX 0.08Bn.
As a withholding agent, the Fund also remitted UGX 36.66Bn in PAYE on behalf of its employees, UGX 3.16Bn as Withholding Tax, and UGX 1.66Bn as Withholding VAT (WH VAT).
Cashflow analysis
UGX 204.9Bn
The closing cash and bank balances stood at UGX 204.9Bn in FY2025/26 compared to UGX 106Bn in FY2024/25.
UGX 888.5BnUGX 771.5BnUGX 53.6Bn
Net cash generated from financing activities amounted to UGX 888.5Bn. Net cashflows used in investing activities was UGX 771.5Bn whereas net cashflows used in operations was UGX 53.6Bn.
This is a clear indicator of the Fund’s ability to generate enough cash for all routine operations, financing, and investing activities. We highlight further the significant accounting policies and how these affect the Fund in Note 3 of the financial statements.
