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NSSF Managing Director Patrick Ayota highlighted that investments in stable, low-risk assets, such as government securities, have been key to the Fund's performance
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By Our Reporter
Finance Minister Matia Kasaija announced that the National Social Security Fund (NSSF) will pay an 11.5% interest on members' savings for the 2023/2024 financial year, amounting to around sh2 trillion in total payouts. This rate, declared at NSSF’s 12th annual members meeting, exceeds the 10-year inflation average of 4.2% and is higher than the 3.9% inflation rate for 2023/24.
For example, a member with sh1 million as of July 1, 2023, would earn sh115,000 in interest.
NSSF Managing Director Patrick Ayota highlighted that investments in stable, low-risk assets, such as government securities, have been key to the Fund's performance. The stock markets in East Africa also saw a strong recovery, and NSSF strategically invested in MTN and Airtel stocks, enhancing its portfolio and returns.
Patrick Ayota, MD NSSF
Growth plans
As part of its Vision 2035, NSSF aims to grow its assets to sh50 trillion, extend coverage, and boost job creation through initiatives like the Hi-Innovator program. The Fund also plans to engage informal groups in value-added activities, particularly in agriculture, and explore public-private partnerships (PPP) for sustainable investments. On housing, NSSF is focused on affordable housing projects despite challenges like high land costs and taxation. The cheapest unit in their Temangalo project is priced between sh90m and sh100m.
Fund Performance
NSSF achieved significant asset growth, surpassing its sh20 trillion target a year early, with assets reaching sh22.13 trillion by June 2024—a 19.2% increase from the previous year. Interest income grew from sh2 trillion to sh2.34 trillion, while contributions rose by 12.2% to sh1.93 trillion. Benefits paid out decreased from sh1.199 trillion to sh1.120 trillion in the same period.
Newly appointed Board Chairman David Ogong reassured members that the Fund would continue to provide strong returns and expand its coverage.
