The National Social Security Fund (NSSF) has declared an interest rate of 10.75% for the financial year 2019/2020.
The announcement was made on Monday by the Finance Minister, Matia Kasaija during the fund’s Annual Members Meeting held virtually due to the Coronavirus pandemic.
“Despite the COVID-19 pandemic that has affected the economy and many businesses, NSSF has remained resilient, meeting its annual business objectives especially in the areas of Assets Under
Management that grew by 17% from shs11.3 trillion to shs13.3trillion and the total revenue that increased by 17%,” Kasaija said.
“I would therefore like to congratulate the NSSF team upon delivering a remarkable performance in the 2019/2020 in spite of the challenging macro environment.”
The rate declared translates into a total of shs1.14trillion that will be credited to the fund’s more than two million members’ accounts.
This is higher than the shs933 billion that was paid to members in the previous financial year.
The 10.75% interest rate is a few points lower than last year’s 11% interest majorly due to the economic slowdown occasioned by the COVID-19 pandemic and deferment of dividend payments by Bank of Uganda, among other factors, that affected the fund’s performance.
The NSSF Managing Director, Richard Byarugaba reechoed the fund’s resilience in the tough operating environment.
“Many businesses both locally and globally are either closing down or seeking solutions for survival rather than expansion. I am happy that the Fund has been able to absorb the shocks as evidenced from our performance,” he said.
The NSSF Board of Directors chairperson, Patrick Kaberenge reassured members that the fund was still committed to preserving value for their savings.
“Despite a tough investment environment characterized by a strong shilling and depressed equity markets, the return earned has remain stable.” he said.
The 10.75% interest earned is above the 10-year average inflation rate of 5.82.
