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Municipal Social Security scheme touted in Kigoma

Municipal Social Security  scheme touted in Kigoma  

The Kigoma Ujiji Municipal Council (KUMC) has passed an unprecedented motion raised by the constituency MP, Hon Kabwe Zuberi Ruyagwa Zitto, to establish the Kigoma/Ujiji Municipality Social Security Scheme (KUMSSS). This happened on the full council meeting held on 30th January 2016. This motion is the first ever of this kind in Tanzania.

The main purpose is to seeking to extend universal health coverage to the entire population of the constituency by 2020, boost local savings through social security in order to raise enough capital for long term investments in the Municipality  and provide pension to elders. 

The motion was raised during the first full KMC meeting by Hon Zitto (ACT, Kigoma Mjini ) who presented through components to this project (universal health coverage, pension, and access to credit for primary societies). If implemented, the project will register 20,000 members, representing roughly half of the Kigoma/Ujiji Municipality (or 120,000 individuals). The Municipality has resolved to start grouping potential members into Primary cooperative Societies through various affinities such as profession, economic activities and area of residence.

‘Through a matching system, members will only pay half of their contribution’ continued Hon Kabwe. A matcher (Municipal Coucil itself, Constituency Development Catalyst Fund and The  World Bank ( to be approached)  would match tshs 10,000 to the member’s equivalent contribution, over a period of 3 to 5 years. In order for the KUMC to implementing the project, they would have to discuss with the National Social Security Funds (NSSF) to develop this special scheme for management purposes and contact the World Bank to assess whether they would join this fantastic project.

Through Primary Societies, Members will benefit from potential credits from NSSF, said Hon Zitto. This idea has been tested with coffee farmers of Rumaku in Kalinzi (Kigoma North) and can be duplicated to smaller groups in the informal sector such as bodaboda, hairdressers, vendors etc.

Each member will benefit from total health coverage and the benefit will be extended to 5 of his or her family members. This means that just through this scheme, an average of 120.000 individuals will receive primary healthcare. This is the flagship benefit used to attract members in the scheme. Any health expenses will not be deducted from the members’ savings. However this is not the only benefit of the KUMSSS.

Primary societies will be eligible to apply for loans. Members would collectively get mid-term loans to sustain and expand their businesses, then pay back within 3 to 5 years. This collective liability for loans will constitute a guarantee for reimbursement. By expending their businesses members will increase their savings and hopefully create employment.

Another important benefit is pension. From the 15th year of continued contribution, members will have the choice to withdraw from the project by taking 15 years’ worth of contribution and dispose of the money to quick start projects, invest or spend it as they please, or decide to go for the pension scheme, allowing them to retire comfortably, in dignity. However, member who will opt to withdraw from the project will only withdraw their half of the money in their accounts, constituting their own contribution.

Meanwhile, NSSF would have to look with more attention to the Kigoma Municipality needs in terms of infrastructures and job creation investments financing. This potentially increased income will raise the need for health infrastructures, electricity and roads following the probable small enterprise boom that will likely take place over the next few years.

The Municipal Council directed the Municipal Director to look into ways of including social security scheme membership as a condition for licensing traders, taxi services and other licenses issued by the municipal authority.

The motion was unanimously approved by all councillors regardless of political parties. Kigoma Ujiji Municipal Council is made of councilors from three political Parties ACT Wazalendo (20), CCM (7) and CHADEMA ( 1). 

Communications Desk

Kigoma Ujiji Municipal Council

P O Box 44

Kigoma

 

Tcontactel +255 28 2802535 Municipal Director

contact MP zitto.kabwen [at] yahoo.com and Mayor Hussein Ruhava  +255 753 623 600 for Inquiries