National Social Security Fund has today declared an interest rate of 10% on member savings for the financial year 2022/23, translating into Shs 1.591 trillion that will be credited to member accounts.
The interest rate that is higher than last financial year’s 9.65%, was announced by Matia Kasaija, the Minister of Finance, Planning and Economic Development at the Fund’s 11th Annual Members Meeting held at the Kampala Serena Hotel.
Kasaija commended the Fund for posting a remarkable performance on almost all the Key Performance Indicators despite a challenging environment characterized by turmoil in Europe due to the Russia -Ukraine war, the investor flight from most of the developing markets back to the US, reduction in value across all East African stock markets and the increased scrutiny that the Fund underwent in the 3rd quarter of the just concluded Financial year.
“I am especially glad that the Fund’s assets registered growth again from UGX 17.26 trillion in Financial Year 2021/22 to UGX 18.56 trillion in Financial Year 2023/24. Many naysayers did not imagine the possibility of growing this Fund to UGX 20 trillion. That you will achieve that strategic objective a year ahead of schedule is laudable.” Kasaija said.
He added, “The second KPI I am interested in is the money you generated during the year because that shows the productivity of the investments that I approved during the year. I am therefore glad that the total realised income earned increased by 15% from Ugx 1.9 trillion in the Financial Year 2021/22 to Ugx 2.2 trillion in the Financial Year 2022/23.”
The interest rate declared is 5.8% above the 10-year average inflation, which means that the Fund has once again delivered on its promise and surpassed it by almost 3.8%. As provided for in the NSSF Act, as amended, this new rate will be calculated and credited to the balance outstanding on the members’ accounts as of 1st July 2022.
Betty Amongi, the Minister of Gender, Labour and Social Development also lauded the Fund’s performance but challenged it to create more solutions that will further address social protection in line with the International Labour Organization, the global body charged with developing international policies and programmes to improve working and living conditions worldwide.
She promised to fast track and issue regulations to operationalize several benefits/ products that the Fund was innovating to provide more value to members beyond a good return.
Patrick Ayota, the Fund’s Managing Director who presented the Fund’s performance results at the meeting, also highlighted its sustainability agenda that included support to local entrepreneurs to scale and create jobs as well as the Fund’s interventions in health and education.
