Kampala, Uganda | JULIUS BUSINGE | The National Social Security Fund (NSSF) has declared 11.23% interest rate on members’ savings for the financial year 2016/2017, lower than the 12.3% paid out for FY2015/2016.
Officials said the lowering of interest rate was because of a bad economy that affected its earnings on its fixed income portfolio that contributes over 80% to its income. The declared interest rate is still higher than the 10 year inflation rate of 8.68%, they said.
State Minister for Planning and Privatization Evelyn Anite who represented Minister Matia Kasaija declared the Interest Rate for the Financial Year 2016/2017 as 11.23% athe annual members meeting at Serena Hotel.
Meanwhile, the Fund’s size grew by 20% from Shs 6.6 trillion in 2016 to Shs 7.9 trillion in 2017 with compliance levels growing to 80% from 78% in 2016 while contributions grew by 15% to Shs 917 billion from Shs785 billion in 2016, according to its financial report.
Speaking at the 5th Annual Members General Meeting at the Kampala Serena Hotel on Sept. 29, the Fund’s Managing Director Richard Byarugaba, attributed the fund’s size growth to good performance to its aggressive investment and marketing strategy and improved compliance levels from members.
Byarugaba said that with an income of Shs 912 bn on Shs7.924 tn, NSSF’s return on assets (11.51%) is above the industry average of 8%, according to the industry regulator, the Uganda Retired Benefits Regulatory Authority report for 2016.