The Minister of Finance, Matia Kasaija, has announced 11.5 percent interest rate for contributors to the National Social Security Fund (NSSF).
Speaking at the annual general meeting, Matia Kasaija said we are pleased with the stability and continuity at the fund over the last year, as evidenced by the growth registered.
“As per Section 36(2) of the NSSF Act (Cap 230), for the Financial Year 2023/24, I declare an interest rate of 11.5%. The interest rate I have declared is above the 10-year average rate of inflation currently at 4.2% and the 2023/24 inflation, which stood at 3.9%. It is slightly above Shs2 trillion, the highest amount of money ever paid in interest to members,” the minister said.
He said the new interest will be calculated and credited on the balance outstanding on the members’ accounts as of July 1, 2023.
According to the 2023/24 financial year results, the fund recorded Shs2.53 trillion in revenue. The fund’s assets under management (AUM) increased from Shs18.56 trillion in the financial year 2022/23 to Shs22.13 trillion in the financial year 2023/24.
The results further indicate that the member contributions shot up from Shs1.72 trillion in financial year 2022/23 to Shs1.93 trillion in financial year 2023/24. The total revenue saw a 15% increase, from Shs2.2 trillion in financial 2022/23 to Shs2.53 trillion in financial 2023/24.
The compliance rate was maintained at 57%. Benefits paid decreased slightly from Shs1.199 trillion to Shs1.120 trillion, driven by a reduction in claimants from 48,115 to 44,250. Mid-term benefit payments also dropped from Shs272.2 billion to Shs176.6 billion.
Davinia Esther Anyakun, Minister of State for Gender, Labour, and Social Development, said I am interested in the strategies to increase coverage, given that the legal obstacle limiting the eligibility threshold to five employees was repealed to enable the Fund to recruit employees from the informal sector, the self-employed, and the public sector voluntarily.
“Fund has embarked on recruiting previously unserved segments, including the informal sector and the agricultural sector. I look forward to seeing what progress the fund will make by this time next year,” she said.
Patrick Ayota, Managing Director of the fund, said the management team and the board of NSSF have come up with “Vision 2035,” the next 10-year cycle.
“We are going to be very active in growing jobs and creating earnings for people. We want to make lives better by making savings a way of life. We are going to maximise earnings, maximise earnings, and maximise value to members so that they do not exist,” he said.
