The National Social Security Fund (NSSF) revealed interest payout of 15 percent on members’ savings for the financial year 2017/18. The announcement was made by Hon. Dr. Gabriel Ajedra, Sate Minister of Finance for General Duties during the 6th NSSF Annual members meeting.
The interest rate for the year equates to 1.1 trillion shillings paid out in interest to members of the Fund. This is the very first time in the Fund’s history that the Fund has declared 15% interest rate to its members.
The announcement comes on the heels of the Fund’s declaration of an impressive performance on key financial indicators for the Financial Year 2017/2018, with total income hitting a record UGX 1.6 trillion before interest to members and taxes with the fund’s total Assets Under Management (AUM) hitting a record UGX 9.98 Trillion as at June 30, 2018, a 26% increase from UGX 7.92 Trillion the previous Financial Year.
The 15% interest rate is attributed to the Fund’s improved performance on all financial and investment indicators, arising out of strategic exploitation of the investment environment within the region, despite modest growth in the economy over the same period.
The Fund’s performance shows total member contributions increased by 14% to UGX 1.05 trillion in 2017/2018 compared to UGX 917 billion in the previous Financial Year, the most ever collected by the Fund in a single year and total Income increased by 77% to UGX 1.6 Trillion in 2018 from UGX 912 Billion in 2017.
Member contributions also grew by 14% to UGX 1.05 Trillion in 2018 from UGX UGX 917 Billion in 2017 and benefits paid out to qualifying members increased by 29% to UGX 360 Billion in 2018 from UGX 278 Billion in 2017.
