Members of the National Social Security Fund will be getting 1.07% less interest on their returns this Financial Year. The Fund reduced interest rates on returns to 11.23% compared to 12.3% in the previous Financial Year 2016/2017. Richard Byarugaba the NSSF Managing Director had an explanation for this reduction. “But what happened during March of last year is that the Central Bank in Uganda and a couple of other places including Kenya where there was an interest rate cap basically signaled a lowering of interest rates and that did affect the amount of investments that we are putting or the returns that come out of the fixed income asset class.” Said, Richard Byarugaba – Managing Director, NSSF.

The National Organization of Trade Unions however felt that this was unfair to workers accusing different institutions such as the Uganda Retirement Benefits Regulatory Authority of taking a share of the members’ savings for unclear work. “Why should URBRA take 4 Billion from the workers’ saving? That money should have been credited to my account, on other people’s account. Now, you find that that URBRA law is now becoming a minus because of the Ministry of Finance who don’t even understand the social security.” Said, Uhser Wilson Owere – Chairman General, NOTU. Patrick Kaberenge the NSSF Board Chairman believed that comprehensive reforms in the NSSF law would go a long way in solving some of the major challenges that the Fund was facing including how members could access part of their savings before the actual retirement age. “Many countries now allow between 20 and 50% of somebody’s savings to be accessed by the member. It is ridiculous for a saver to have 200 million shillings on his or her NSSF account and cannot pay 3 million shillings for his university daughter or son. That should be very easy.” Said, Patrick Kaberenge – Board Chairman, NSSF.

Despite the challenges, the Fund delighted in the member growth, a 17% growth in member contributions from 785.5 billion shillings last year to 917 billion shillings in 2017. Monthly contribution grew by 18.5% from 65 billion shillings to 77 billion shillings as compliance improved from 77% to 80%. The Fund membership stood at 1.7 million 4,370 voluntary members.