Hit hard by almost two years of sweeping anti-coronavirus measures, including two episodes of total lockdowns, Ugandan workers pushed for an amendment to the pensions law to allow them tap some of their savings.
Parliament subsequently amended the law that manages the state-run National Social Security Fund (NSSF) to give workers early access to 20% of their nest eggs.
"(The president) has assented to the NSSF Bill as amended," Museveni's spokeswoman, Linda Nabusayi, tweeted on Tuesday.
Museveni had initially opposed the changes saying he was concerned about their potential impact on pensions, but later agreed to back the new legislation.
After the amendments, savers who are at least 45 and who have been saving for 10 years or more, can apply to tap their funds. The previous law limited redemptions to those who were 55 and older.
With assets worth some $3.76 billion, NSSF is the largest pension fund in Uganda and one of the biggest investors in equities and other assets on East African bourses.
The fund manages mandatory pensions savings for all private sector workers.
Analysts have expressed concerns that the changes could limit the fund's ability to spend on fresh investment, hurt its earnings, and overall growth.
(Reporting by Elias Biryabarema; Editing by Duncan Miriri and Tomasz Janowski)
