NSSF announces new interest rates today

By Vision Reporter

THE National Social Security Fund (NSSF) is set to announce new interest rates for its members today.

Finance minister Maria Kiwanuka will announce the rates at a news conference in the ministry’s board room at 1pm Monday afternoon in Kampala.

In 2010, NSSF doubled the interest rate from 3% to 7%.

The rate of interest went up from 3% from the previous financial year to 7% because of the improved financial performance, the NSSF chairman, Vincent Ssekono, said.

Ssekono attributed the improved financial stand to the improved performances in the stock market and the positive performances of the fixed income investments such as the treasury bills, bonds and fixed deposits in banks.

The managing director, Richard Byarugaba, said the real estates also performed well, with the exception of those under question such as the Nsimbe estates.

The Fund keeps about sh800b on fixed deposits in various commercial banks. Many of these deposits are renewed when they mature after one year.

The Fund shares improved. It owns shares in Housing Finance Bank (50%), TPS Serena Hotel (20%), The New Vision Group (19.6%), DFCU (5.91%), Stanbic Bank (2.79%), Uganda Clays (32.5%), Safaricom (2.38%) and Bank of Baroda (1.49%).

The Fund has 450,000 members and boasts of an asset base of sh1.6 trillion, according to the June 2010 unaudited report, up from sh1.3 trillion in June 2009.