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NSSF members to share Shs1.1 trillion after record 15% interest rate

Savers with NSSF are set to share Shs1.1 trillion for the financial year 2017/18 after the Fund declared a 15 per cent interest (PML Daily PHOTO)

KAMPALA – Savers with National Social Security Fund (NSSF) are set to share Shs1.1 trillion for the financial year 2017/18 after the Fund declared a 15 percent interest, the highest ever by the fund, following a great financial performance.

The interest rate is a rise from 11.23 per cent for the Financial Year 2016/17.

NSSF managing director Mr Richard Byarugaba said: “We have had a good year (2017), we earned good returns on the fixed income and equity markets in East Africa the stock exchanges in Uganda and Kenya performed well in 2017. So, so we are sharing with our members the profits we have made.”

NSSF Managing Director, Mr Richard Byarugaba revealed that the fiscal year 2017/2018 was a good one. (FILE PHOTO)

Officiating at the annual general meeting of the Fund on Tuesday, State Minister for Finance Gabriel Ajedra said this is going to be the first time the fund will pay such an interest rate to its members.

“The Fund will pay an annual interest rate of 15 per cent which will be Shs1.1 trillion in total. I am impressed by the fund’s commitment to transparency which is something some of us, as government need to replicate across. I want to underscore the good performance of the board and management. Within, the last three years, the fund has registered about 500,000 savers,” Eng. Ajedra said.

The highest ever interest declared to members was in 2007/2008 when then Managing Director, David Chandi Jamwa declared a 14 per cent rate.

Currently, about 2 million people are saving with the National social security Fund and a total of shs1.5 trillion has been contributed by these members to the fund.

Contributions recorded a 14 per cent growth to Shs1.05 trillion for the financial year 2017/18 compared to Shs917b the previous financial year.

Mr Stephen Kaboyo, the Alpha Capital managing partner, said the 15 per cent interest was a huge one considering the fact that during the second half of 2017, interest rates trended downwards underpinned by the monetary policy easing.

Savers and stakeholders graced the NSSF Annual Members’ Meeting as the revelation of a 15percent interest was unveiled (PML Daily PHOTO)

Mr Byarugaba also revealed that construction of the pension towers will start in three months. “Three years down the road, the NSSF Pension towers will be the tallest and biggest building in town; it will cost us 110m dollars of our money”

NSSF board chairman Patrick Byabakama Kaberenge said the fund will remain focused developing the real estate sector to supplement on government efforts of solving the problem of shortage of houses.

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