NSSF to pay out highest interest to date at 15 pc
August 29, 2018—In contrast to last year, top management at the National Social Security Fund (NSSF) wore wide smiles on Tuesday after announcing a 15 pc interest to be paid on members’ contribution.
NSSF, the most liquid autonomous entity in Uganda, has assets nearing $3 billion, but last year paid out 11. 23 pc, in the wake of the economic downturn during 2016.
Managing director, Richard Byarugaba said at the Annual General Meeting in Kampala, “We have had a good year. The Fund earned good returns on our fixed income and equity markets in East Africa, especially the stock exchanges in Uganda and Kenya.”
To date, NSSF has about 900,000 active members who contribute five percent of their gross salary while the employer is expected to add another 10 pc on a monthly basis.
An equally delighted Ajedra Gabriel Aridru, junior minister in the finance ministry who officiated at the event said, “Each percentage point is equal to UGX73.5billion ($19.5 million). This means the 15 pc announced today will see UGX1.1trillion credited to members this financial year. This is a 61 pc increase from UGX681 billion paid out last financial year.”
According to NSSF officials, this is the biggest interest rate in the history of the Fund. Byarugaba attributed the good performance to a growing young population joining the Fund. According to latest figures NSSF saw a 66 pc increase in total income earned from UGX912 billion to UGX1.6 trillion. Total assets under management also hit UGX9.98 ($2.6 billion) trillion, a 26 pc increase from UGX7.92 trillion registered the previous year.