The National Social Security Fund (NSSF) has announced that its members will earn a 10% return on their savings for the 2022/23 financial year. This is higher than last year’s interest of 9.35%, which was the lowest rate paid in the past decade.
The announcement was made by Finance Minister Matia Kasaija during the Fund’s 11th Annual Members’ Hybrid meeting at the Kampala Serena Hotel on Tuesday.
Experts had earlier predicted a notable shift, with expectations of a return to double-digit interest rates of between 10% to 14%.
NSSF’s managing director, Patrick Ayota, acknowledged the challenges posed by declining yields on bonds. Despite these challenges, NSSF reported a 15% increase in total realised income, surging from sh1.9 trillion to sh2.2 trillion for the fiscal year ending on June 30, 2023.
Ayota attributed the growth in earnings to interest income, which climbed from sh1.79 trillion to sh2 trillion, and dividend income, which grew from sh84b to sh139b.
The 10% return on savings is good news for NSSF members, as it will help their savings grow over time. It is also a sign that the Fund is performing well and is able to generate returns for its members.
