NSSF savers get 10% interest rate for FY2022/2023

Finance Minister Matia Kasaija has this morning announced a 10% interest rate payment for National Social Security Fund savers for the FY2022/2023 slightly higher than the 9.65% rate for the FY2021/2022.  

This was announced at the 11^th Annual Members’ Meeting held both physically and online in Kampala, the capital city.

Kasaija said: “Members of NSSF thank you for trusting NSSF with your money; it is safe.”

NSSF pays an interest rate to members which is 2 percentage points above the 10-year inflation rate. For FY2022/2023, the inflation rate was 4.2%.

Patrick Ayota, the Fund’s Managing Director said, this promise will be kept for years to come.

Peter Kimbowa, the Fund’s Board Chairman said: “I would like to report that there has been continuity and stability at the Fund. The Board’s focus is the future because we believe that the best of the Fund is yet to come.”

He said there are opportunities to draw all categories of working Ugandans into the social security savings net, enabled by the NSSF Act as recently amended.

He added that they will still focus on expanding coverage to 50% of the working population from about 10% that the Fund currently serves.

The other area of focus is the innovation potential – both within the Fund and the country at large.

“We can change people’s perception of what it means to build savings over an extended period from the current 11% of GPD to about 30%, which is the desirable point at which the country can start funding its national budget using locally mobilised funds. The potential for each individual and the country is immense,” he said.

The performance

The Fund recorded a 15% increase in revenue, reaching Shs2.2 trillion for the Financial Year ending June 30, 2023.

According to Ayota, the key drivers behind the impressive financial performance include a substantial boost in interest income, which surged from Shs1.79 trillion to Shs2 trillion, and a noteworthy increase in dividend income, rising from Shs84 billion to Shs139 billion.

The Fund invests mainly in three asset classes – fixed income, equities (listed and unlisted), and real estate.

NSSF interest rate – trend for the last 12 years

2012 ✅10.00%

2013 ✅11.23%

2014 ✅11.50%

2015 ✅13.00%

2016 ✅12.30%

2017 ✅11.23%

2018 ✅ 15%

2019 ✅ 11%

2020 ✅ 10.75%

2021 ✅ 12.15%

2022 ✅ 09.65%

2023 ✅ 10.00%