The size of the fund has grown from sh5.6trillion in 2015 to sh6.5trillion
NSSF board chairman Patrick Byabakama Kaberenge (L) watches Finance Minister Matia Kasaija (2nd L) unveil the 12.3% interest as NSSF MD Richard Byarugaba (2nd R) and his deputy Geraldine Ssali look on. Photo by Godfrey Kimono
The National Social Security Fund (NSSF) is set to credit its member's accounts with over sh606b after unveiling a new 12.3% interest rate.
While unveiling the new rate at NSSF offices this morning, Minister of Finance Matia Kasaija noted that the interest rate slightly dropped from 13% from the previous year.
He however noted that this does not affect the money that is to be received by the members of the fund which is a 17% increase of the sh516b that was received last year.
“I am pleased to note that despite the tough environment, the fund has performed well as reflected in the interest rate that will be paid to the fund members” he said.
Kasaija further revealed that government is committed to guaranteeing a stable financial environment so as to enable financial entities like NSSF to perform well for the good of the country.
NSSF managing director Richard Byarugaba also noted that the size of the fund had grown from sh5.6trillion in 2015 to sh6.5trillion due to an 18% asset base increment.
Byarugaba attributed this rise to improved bond yields and dividends coming from equity investments.
Looking to the future Byarugaba said NSSF was on schedule to grow to sh20trillion by 2025 saying they are determined to innovate to become more relevant to the membership, enhance service delivery and make NSSF a desirable place to work.
"The Fund is in a strong financial position, and still growing. We will continue to manage our costs to progressively lower the cost of doing business," he said while pledging a commitment to transparency and accountability.