Finance Minister Kasaija Praises NSSF’s Stability, Announces 11.5% Interest Rate
Finance Minister Matia Kasaija praised the NSSF’s stability and growth, which saw the fund grow by 19.2% in the last financial year. At the NSSF Annual Members’ Meeting, an interest rate of 11.5% was declared, exceeding the average inflation rate.
The Finance Minister, Hon. Matia Kasaija, expressed the Government’s satisfaction with the stability and growth of the National Social Security Fund (NSSF) over the past year. This is reflected in the Fund’s increase from UGX 18.56 trillion in the financial year 2022/23 to UGX 22.13 trillion in 2023/24, marking a 19.2% growth.
“On behalf of the Government, I am pleased to affirm our contentment with the Fund’s stability and continuity over the past year, as evidenced by the impressive growth registered,” the minister stated during the NSSF Annual Members’ Meeting held at the Kampala Serena Hotel on September 26, 2024.
The NSSF’s investment portfolio includes fixed income, real estate, and equities. During the same event, Minister Kasaija announced an interest rate of 11.5% for NSSF members. He highlighted that this rate surpasses the 10-year average inflation rate of 4.2% and represents an unprecedented payout of over UGX 2 trillion in interest to members.
The Minister further emphasized that creating employment opportunities for the many young graduates from various institutions of learning is vital for maintaining the country’s stability.
Remarks from NSSF Managing Director
Patrick Ayota, the Managing Director of NSSF, also addressed the audience, underscoring the Fund’s commitment to its members.
“The Fund belongs to its members, and they remain our top priority. Globally, there are approximately 332 pension funds of a similar size to NSSF. We have benchmarked against these funds to understand how they create value for their members through investments,” Mr. Ayota stated.
He added that, based on global metrics, the average index stood at 3.3, while NSSF Uganda recorded a notable metric of 7.6. “Many pension funds use us as a benchmark due to our strategic investment allocations,” he said.
Mr. Ayota’s appointment as Managing Director in August 2023 was delayed due to investigations into allegations of abuse of office, corruption, and mismanagement against his predecessor, Mr. Richard Byarugaba. These investigations were conducted by the Inspectorate of Government and Parliament.
As of August 2023, the NSSF employs over 700 staff and covers all employers, regardless of the number of employees, for individuals between the ages of 16 and 55. However, employees under the Government Pensions Scheme are exempted. Employers are mandated to remit contributions on behalf of their employees on a monthly basis.
