The National Social Security Fund has defended its performance over the last 10 years before parliament.
The NSSF senior management team led by the acting Managing Director, Patrick Ayota appeared before parliament’s committee investigation the fund and the appointment of its managing director and his deputy as well as its performance, governance and stakeholder involvement in the fund’s decision making among others.
Before the committee, Ayota said the Fund’s growth in asset base, contributions, benefits, and membership growth has been growing steadily over the last 10 years.
“In 2010, the Fund was worth shs1.7 trillion in assets under management. As at end of the financial year 2021/22, the Fund was shs 17.3 trillion in assets, a 10-fold growth. This is a growth of 10 times . As of December 2022, the Fund’s assets stood at Shs18.8 trillion,” Ayota said.
The NSSF Board, led by Dr. Peter Kimbowa also interfaced with the same committee.
Dr. Kimbowa was quizzed about the shs 6 billion that the Minister of Gender, Betty Amongi asked the board Chairman in a letter to provide for in the Fund’s budget for the financial year 2022/23.
He told the committee that the minister’s letter was irregular.
On contributions, Ayota said the member contributions have steadily increased from annual collections of shs 556 billion in 2012 to shs 1.491 trillion in 2022.
On member recruitment, Ayota said that the current membership size stands at 1.3 million with a historical annual growth rate of 140,000 more members, while the current employer base is 27,628 with a historical annual growth rate of 2,685 more employers.
Regarding real estate, Ayota clarified wrong information that the Fund’s real estate investments do not provide a return to members and are out of reach of the majority of NSSF savers.
He said that the Fund earns rental income and capital gains from its investments in real estate.
Ayota also told parliament that the Fund’s real estate offering targets three groups of consumers including the high-end income bracket catered for under the Citadel Place Project , Solana Lifestyle and Residences in Lubowa; the middle-income bracket catered for under Kyanja housing project and Temangalo housing project, and affordable housing income bracket catered for under the Temangalo affordable housing project.