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NSSF announces 12.15% Interest Rate for FY 2020/21

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Richard Byarugaba, NSSF MD (L) and Peter Kimbowa, NSSF Board Chairperson look on as Finance Minister, Hon. Matia Kasaija announces the interest rate for financial year 2020/2021.

Richard Byarugaba, NSSF MD (L) and Peter Kimbowa, NSSF Board Chairperson look on as Finance Minister, Hon. Matia Kasaija announces the interest rate for financial year 2020/2021.

By Our Reporter

The National Social Security Fund (NSSF) has declared an interest rate of 12.15% for the financial year 2020/2021. This was announced by the Minister of Finance, Planning and Economic Development, Matia Kasaija, during the Fund’s 9th Annual Members Meeting held at Kampala Serena Hotel on Wednesday.

The rate declared translates into a total of UGX1.52 trillion that will be credited to the members’ accounts, higher than the UGX1.14 trillion that was paid to members in the previous financial year.

“As provided for in the NSSF Act, this new rate will be calculated and credited on the balance outstanding on the members’ accounts as of 1st July 2020,” Hon. Kasaija said after announcing the interest rate.

The 12.15% interest rate that is higher than the 10.75% interest rate declared last financial year demonstrates the Fund’s resilience to withstand shocks occasioned by a stressed economy and uncertain business environment.

“The performance as presented by the NSSF MD and Chairman is commendable given that the COVID-19 pandemic has had massive economic and social effects across the globe. Uganda was no exception, with the Economy growing at 3.3% in the financial year 2020 to 2021. To register any growth is therefore very commendable.” Kasaija added.

Performance highlights indicate that the Fund’s assets increased by 17% from UGX13.3 trillion to UGX15.5 trillion and comprehensive income increased by 25% from UGX 1.47 trillion to UGX 1.84 trillion.

“The growth in income interest can be attributed to the increased return on Treasury Bonds in the Fixed Income portfolio, dividend income, and property sales,” Richard Byarugaba, NSSF Managing Director said while presenting the performance highlights at the annual members meeting.

Dr. Peter Kimbowa, the newly appointed Chairman Board of Directors, reassured members that the Fund would continue to create value for them and give them good return higher than the ten year inflation rate. “As a new board,our focus for this financial year will be majorly to conclude legislative reforms ,ensure prudent investments and to ensure that our staff are prepared for a different operating environment that will be ushered in by the legislative reforms. “ he said.

The 12.15% interest rate declared is above the 10 years average rate of inflation which currently stands at 5.43%

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