The National Social Security Fund (NSSF) has declared a 12.15% interest rate for its members for the financial year 2020/2021. The rate translates to 1.52 trillion shillings that will be credited to members accounts. The interest rates for this financial year according to Finance Minister Matia Kasaija are higher than the Shs1.14 trillion paid last financial year. Nasali Fatiah reports
Despite the challenging economic times that were brought about by the outbreak of Coronavirus, the national social security fund has shown resilience.
Finance minister Matia Kasaijja notes that with the Economy having grown at 3.3% in the financial year 2020- 2021, it’s been commendable for the fund to register growth.
“…For the six years I have been minister, I have witnessed the fund grow, but this time I didn’t expect much growth due to the effects of the pandemic to business, but it has surprised me,” he said.
Given that the fund managed to secure assets worth 15. 5 trillion shillings, this has enabled NSSF to collect more returns than it was in the previous financial year when it registered 13.5 trillion shillings.
This has earned members a 12.15% interest rate that is higher than the 10.75% interest rate declared last financial year. 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.
The growth in income interest is attributed to the increased return on Treasury Bonds in the Fixed Income portfolio, dividend income, and property sales.
Dr. Peter Kimbowa, the Chairman Board of Directors, reassured members that the Fund would continue to create value for them and give them good returns higher than the ten-year inflation rate.
“Our focus for this financial year will be majorly to conclude legislative reforms, ensure prudent investments,”
