Savers with the National Social Security Fund will enjoy a 12.5% as interest rate on their savings for the financial year 2020/21.
The figure is higher than the 10.75% declared the previous year.
The rate declared translates into a total of shs1.52 trillion that will be shared among members, higher than the shs1.14 trillion that was paid to members in the previous financial year.
Speaking during the 9th annual members meeting held on Wednesday, the Finance Minister hailed NSSF for the resilience despite the onset of the pandemic that ravaged the entire world.
“As provided for in the NSSF Act, this new rate will be calculated and credited on the balance
outstanding on the members’ accounts as of 1st July 2020,” Kasaija said after announcing the
“Uganda was no exception, with the economy growing at 3.3% in the financial year 2020 to 2021. To register any growth is therefore very commendable. For over six years that I have been Minister of Finance, Planning and Economic Development and charged with overseeing the Fund, it has registered growth every year across its key performance indicators. I congratulate the Fund and its members upon this stellar performance registered during the last financial year. The performance is commendable given that the COVID-19 pandemic has had massive economic and social effects across the globe.”
The minister noted that the growth of the Fund is not by accident but rather a deliberate vision and strategic focus.
Performance highlights indicate that the Fund’s assets increased by 17% from shs13.3 trillion to
shs15.5 trillion and comprehensive income increased by 25% from shs1.47 trillion to shs1.84
“The growth in income interest can be attributed to the increased return on Treasury Bonds in the fixed income portfolio, dividend income, and property sales,” Richard Byarugaba, NSSF Managing Director said while presenting the performance highlights at the annual members meeting.
Dr. Peter Kimbowa, the newly appointed Chairman Board of Directors, reassured members that the
Fund would continue to create value for them and give them good return higher than the ten year
“ As a new board, our focus for this financial year will be majorly to conclude legislative reforms ,ensure prudent investments and to ensure that our staff are prepared for a different operating environment that will be ushered in by the legislative reforms. “ he said.
The 12.15% interest rate declared is above the 10 years average rate of inflation which currently
stands at 5.43%
The Minister however asked the NSSF Managing Director, Richard Byarugaba and the board to ready themselves to tap into the opportunities that will be presented by the bill when enacted into law.
Kasaija explained that if passed into law, the bill will ensure extension of coverage as every employer including those with less than five employees will be eligible to contribute to the Fund whereas the new law will give mandate to NSSF to innovate new benefits for its members but also have a latitude to collect more savings from mandatory members in form of voluntary basis.
He said these present an opportunity for the Fund to grow but urged that there is need for preparation.
“The challenge, I throw back to board of directors and the Managing Director is to ensure the Fund is ready to tap into the opportunities. I pledge my support in ensuring that this legislation is fast tracked. There is consensus on almost every clause, and the Bill will be beneficial for all,”Kasaija said.