VIDEO: NSSF Announces 12.3% Interest Rate as Asset Portfolio Grows by 18%

Finance Minister Matia Kasaija (C) announcing the NSSF interest rate for the financial year 2015/16 together with NSSF Managing Director Richard Byarugaba (R) on Friday

National Social Security Fund (NSSF) has Friday announced a 12.3% interest rate that will be credited to its members in the 2015/16 financial year.

This is a slight drop from 13% in the previous year. The Fund however says that despite the drop, online the credit worth increased from Ugsh 516 billion to Ugshs 606 billion.

The Finance Minister Matia Kasaija who made the announcement said the rate was ‘good’ given the difficult economic environment that NSSF has been operating in which was characterized by high volatility.

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“The rate is above the 10 year average rate inflation, look now at the 8.85% against which the Fund rates itself meaning that NSSF is indeed growing the value of its members’ savings. Members will now also earn Ugsh 90 billion compared to the previous years,” Minister Kasaija said.

“On the side of government, we have controlled inflation and more or less stabilized the exchange rate but this can’t be sustained if we don’t talk less and do more. Politicians must also avoid making statements that portray Uganda as the worst place for investment.”

He reiterated that government will guarantee a stable macroeconomic environment to enable entities like NSSF to perform well for good of the entire country.

The NSSF Managing Director Richard Byarugaba attributed the interest rate fall to stock markets which declined across the region as well as the depreciation of the Uganda shilling against major currencies. This he said affected the Fund’s equity portfolio.

“The Uganda stock exchange declined by 14.5%, Kenya by 15% and Tanzania by 9%. Furthermore, the Uganda Shilling was volatile given that it depreciated against foreign and East African currencies. This means that the assets we hold lost value,” Byarugaba said.

This notwithstanding, the Fund assets grew from Ugshs 5.6 trillion to Ugshs 6.6 trillion, an 18% growth attributed to member contributions which grew by Ugsh 780 billion.

Revenue also grew by 21% from Ugsh 583 billion to Ugshs 708 billion and a profit after tax of Ugshs 491 billion in 2015/16 financial year. The Fund’s register currently stands at 1.5 million members.

“Our expenses ratio improved from 1.33% in 2014/15 financial year to 1.3% in 2015/16, better than most global pension funds with a size similar to that of NSSF. Treasury yields improved across all maturities, rising above the 17% mark compared to last year’s 16.7%,” he added.


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