Kampala | RedPepper Digital – The National Social Security Fund (NSSF) on Wednesday declared a 12.15% interest rate for the financial year 2020/2021. This was announced by the Minister of Finance, Planning and Economic Development, Matia Kasaija, during the Fund’s 9th Annual Members Meeting held at Kampala Serena Hotel.
“In exercise of the powers conferred upon me by section 35(2) of the NSSF Act I have now the pleasure to announce a 12.15% interest to be paid to members of the Fund” he announced.
The 12.15% interest rate that is higher than the 10.75% interest rate declared last financial year demonstrates the Fund’s resilience to withstand shocks occasioned by a stressed economy and uncertain business environment.
“The performance as presented by the managing director and the chairman board of directors is commendable given the covid-19 pandemic has had massive economic and social effects across the globe and Uganda was no exception at all.” He added.
The Ugandan economy grew at 3.3% in the FY2020/2021 and in the current FY2021/22, it has steadied below 4% given the covid-19 pandemic economic effect as according to experts.
Kasaija further noted that the improved performance of the Fund is an indication that the coronavirus pandemic had no effect its economic activities.
He also urged Auditor General John Mwanga who was also in attendance to expose any form of corruption at the Fund always when carrying the audit, so that culprits are punished.
“I would be very happy next time when you tell me in your report the real issues one by one so that I know how to harass these people.”
The minister conclusively called on the public to save more money for their retirement so as to avoid facing poverty-induced induced hard times in the evenings of their lives.
Richard Byarugaba; the Funds’ managing director in his presentation of the performance report attribute the increased return on Treasury bonds in the fixed income portfolio dividend income and property sales among others.
However, there was a 7% slump in real estate’s returns because of the pandemic economic gymnastics like most companies downsizing, remote working i.e. working from home among other factors.
Performance highlights indicate that the Fund’s assets increased by 17% from UGX13.3 trillion to
UGX15.5 trillion and comprehensive income increased by 25% from UGX 1.47 trillion to UGX 1.84trillion
The Funds’ Interest Rates over the years
ON INCREASED TAXATION AND TEMANGALO LAND SAGA
On the issue of reduction and waiver on some taxes which the Fund Manager Richard Byarugaba said affects operation, the Minister differed and said that the taxes are justifiable and needed for revenue generation for the economy which would be used for service delivery in the various sectors key among which he pointed out roads and security et al.
Kasaija also called for the fast-tracking of the 2008 Temangalo land scandal that pitted the Fund against former Prime Minister Amama Mbabazi and Amos Nzeyi which is currently in Court (He retracted the statement after being informed of the court process that bars anyone from discussing legal suit before court until a ruling is given to the parties involved, which tantamount to contempt of court ), and also to be ready for the NSSF Amendment Act which he says will come with both pros and cons in its sections.
“Now that the President has returned it to Parliament, we are going to discuss it and make sure that it is passed and it is out of the way and it is history after all there is consensus on both parties.”