The Minister of Finance, Planning and Economic Development, Mr Matia Kasaija, has declared an interest rate of 12.15% on National Social Security Fund (NSSF) savings for the Financial Year 2020/21.

Mr Kasaija said the interest is one of the most competitive rates in the market this year.

“This new rate equals UGX 1.52 trillion shillings. It is above the 10 years average rate of inflation which currently stands at 5.43%. It is one of the most competitive rates in the market this year,” he said during the annual NSSF members meeting on Wednesday, 29 September 2021.

He said the declaration of the high interest rate is a sign that NSSF is well managed.

“For over six years that I have been Minister of Finance, Planning and Economic Development, charged with overseeing the Fund, the Fund has registered growth every year across its key performance indicators,” Kasaija said

During the period ended June 30, the Fund registered Shs1.84 trillion in investment income compared to Shs1.47 trillion in the period ended June 30, 2020.

Matia Kasaija, Finance minister

This was driven by growth in interest income, largely attributed to the increase in return on treasury bonds, dividend income and real estate income.

“I am aware that this growth is not by accident but has been borne out of a deliberate vision and strategic focus. I would therefore like to applaud the Board and Management for a job well done,” Kasaija explained during the virtual meeting.

Last year, NSSF declared an interest rate of 10.75% for the financial year 2019/2020. In 2018/2019, they declared an interest rate of 11%.

Mr Kasaija hailed the NSSF management and staff for the good performance.

“As provided for in the NSSF Act, this new rate will be calculated and credited on the balance outstanding on the members’ accounts as of 1st July 2020. I would like to congratulate the NSSF Board, Management and Staff once again for a stellar performance,” he said.

Richard Byarugaba, NSSF MD

The interest rate declaration comes at a time when the NSSF Bill is back Parliament on recommendation of President Museveni for final amendments. The Bill, among others, seeks to ensure that savers who have saved with NSSF for over 10 years and have clocked 45 years be allowed to access 20% of their savings.

The minister urged the NSSF Board and Management to use the new Bill to create more investment opportunities for the savings.

“The NSSF Amendment Bill, The MD and CBOD have both mentioned the NSSF amendment bill, I therefore advice management to ready yourselves to tap into the opportunities that will be presented when the bill is enacted into law,” Kasaija said.