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NSSF: It is double digit, 10.7% interest despite COVID-19

Minister Kasaija applauds the work of NSSF after he declared a 10.75% interest on members earnings for 2019-2020. PHOTO NSSF MEDIA

✳ Year – Interest
2012 ✅10.00%
2013 ✅11.23%
2014 ✅11.50%
2015 ✅13.00%
2016 ✅12.30%
2017 ✅11.23%
2018 ✅ 15%
2019 ✅ 11%
2020 ✅ 10.75%

Members to earn Sh1.14 trillion on their accounts

 Kampala, Uganda | THE INDEPENDENT | The National Social Security Fund (NSSF) has today declared an unexpected double digit interest rate of 10.75% for the financial year 2019/2020.

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.

“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 Sh11.3 trillion to Sh13.3trillion and the total revenue that increased by 17%,” Minister of Finance, Planning and Economic Development, Matia Kasaija said upon declaring the interest rate.

“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.”  Kasaija added at the Fund’s 8th Annual Members Meeting at Kampala Serena Hotel today.

The rate declared that translates into a total of Sh1.14trillion that will be credited to the Fund’s more than two million members’ accounts. This is higher than the UGX933 billion that was paid to members in the previous financial year.

NSSF Interest Rate over the last 5 year

Financial Year 2015-16 2016-17 2017-18  2018-19 2019-20
10-Year Average Inflation (Source: Bank of Uganda) 7.88% 7.71% 7.16% 6.28% 5.82%
NSSF Promise (10 year inflation puls 2%) 9.88% 9.71% 9.16% 8.28% 7.82%
NSSF Interest Rate 11.50% 11.23% 15.0% 11.0% 10.75%

Richard Byarugaba, NSSF Managing Director, 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 business expansion. I am happy that the Fund has been able to absorb the shocks as evidenced from our performance.”

The NSSF Chairman, Board of Directors, 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 remained stable,” he said.

The 10.75% interest earned is above the 10 year average inflation rate of 5.82.

The National Social Security Fund Uganda is a multi-trillion Fund mandated by Government through the NSSF Act, Cap 222 (Laws of Uganda) to provide social security services to employees in the private sector.

The Fund manages assets worth over Sh13 trillion invested in Fixed Income, Equities and Real Estate assets within the East Africa region. As the largest Fund in East Africa by value, they have the ambitious goal of growing our Assets Under Management to 20 trillion by 2025.

In other highlights, assets under Management increased by 17% from Sh11.3 trillion to Sh13.38 Trillion as at June 30, 2020, mainly driven by increased contributions and interest income.

NSSF chief Richard Byarugaba

Total Revenue increased by 17% from Sh1.25 trillion in 2018/19 to Sh1.47 trillion as at June 30, 2020, driven by growth in interest income as a result of exposure to high yielding fixed income investments and rental income.

However, dividend income reduced by 19% from Sh77 billion as at June 30, 2019 to UGX 62 billion as at June 30, 2020 due to cancellation of dividend payouts by commercial banks.

Member contributions increased by only 5% from Sh1.22 trillion to Sh1.28 trillion. The marginal growth is attributed to the amnesty NSSF offered to business that were affected by COVID-19 pandemic. To put into context, the Fund deferred a total of about Sh22 billion.

The money paid in benefits to qualifying members increased by 8% from Sh450 billion in 2018/2019 to UGX 486 billion in 2019/20. Again, the marginal growth is as a result of COVID-19 when the country was in lockdown and a significant number of claimants opted to defer their claims.

The Fund’s Cost of Administration improved from 1.28% in 2018/2019 to 1.20% in 2019/2020, while the cost income ratio also improved by 7% from 13.02% to 12.05%. This was due to improved efficiency and cancellation of activities that did not take place this year due to the COVID-19 pandemic, that hit the World.

Click to read full report  – FULL AGM REPORT

Uganda NSSF Annual Report 2020 by jadwongscribd


  1. I think this is a great move. Thanks to NSSF

  2. Dear Nssf Management, Thanks for what you are doing. Please send me my latest update on my e-mail. Thanks

  3. Well done NSSF. Thank you for keeping our money.
    Kindly send me my NSSF balance on my number -0753807077 in the names Kabuye Godfrey or my Email.

  4. Dear NSSF Management, I am grateful for well done job to attained the figures. But I have the concerns about members saving.
    1- I urge the government to reconsider members who once were employed on contracts. Example, many employees who work with Sugar companies and were given 12 months contract. These people are never any professional in any field that after they may find another job.

    2- There are members of the fund who lost their jobs and they are out of service more than 5 years

    3- These employees are the tax burden abiding citizens who pays taxes Monthly and in time out of their gross income and PAYE which has more percentage than the 15% saving.

    Therefore, I would kindly suggest the nssf management consider these kind of conditions the members are facing ruther than to say playing may result in inflation. Save the savers of the fund touring this time needs.

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