NSSF reveal lowest interest payment of 9.65%

The state minister for Finance in charge of general duties, Henry Musaasizi has announced the lowest interest rate of 9.65% for members of the National Social Security Fund (NSSF) for the financial year 2021/2022.

NSSF reveal lowest interest payment of 9.65%
Richard Byarugaba NSSF MD (3rd left) with other officials and Henry Musasizi (4th Right), the Minister of state for Finance (General Duties), who represented the Minister of Finance, Planning and Economic Development, announced the interest rate for FY 2021/22

The state minister for Finance in charge of general duties, Henry Musaasizi has announced the lowest interest rate of 9.65% for members of the National Social Security Fund (NSSF) for the financial year 2021/2022.

The new rate is equivalent to Shs1.38 trillion which is a drop from the 12.15% declared in 2020/2021. The announcement has been made by the minister at the 10th annual members’ meeting held at Kampala Serena Hotel.

Minister Musasizi has however commended the fund for registering an 11% growth despite shocks caused by the Covid-19 pandemic among other factors. According to the NSSF managing director, Richard Byarugaba, the fund balance sheet grew by 11% from Shs15.46 trillion to Shs17.25 trillion.

He says this growth is consistent with the combined growth in investments driven by contributions and income generated net of benefits paid out. “This year, we have accelerated our real estate projects and fostered our ESG agenda through the Hi-Innovator program. So far, we have created over 1300 jobs, 700 entrepreneurs and provided our business advisory services through the financial literacy program.”

Byarugaba added, “contributions only grew by 9%, voluntary contributions grew by 5000 new members on the employee side and 1000 on the employer side.”

Musasizi also praised the fund for implementation of the midterm access program where he said over Shs443 billion has been disbursed in the last one year to over 21700 beneficiaries.

FY 2021/22 Financial Performance Summary

Assets Under Management increased by 11% from Ushs15.5trillion to Ushs17.3trillion. The growth is fueled by the investment capital expenditure from the increasing incomes which are growing at higher rate than the outflows.

Member contributions increased by 9% from Ushs1.3trillion to Ushs1.48trillion. The growth in contributions was mainly driven by payment of arrears, new member registrations and reactivation of employer accounts.

Benefits paid out to qualifying members increased to Ushs1.19trillion from Ushs642.3billion. This was fueled by mid term payouts to qualifying members. Total Comprehensive Income slightly declined from Ushs1.84trillion to Ushs1.776 trillion. This was because of a reduction in valuations of the regional equity markets, and re-allocation of investments from long term to short term instruments to avail liquidity for mid-term benefit payments.