NSSF savings interest earning drops to 12.3 per cent

Finance Minister Matia Kasaija has declared an interest earning of 12.3 per cent for savers with the National Social Security Fund (NSSF), a decline from 13 per cent in the last financial year.
“This rate is above the 10-year average rate of inflation at 8.85 per cent. I am pleased to note that despite the tough economic environment, the Fund has performed well as reflected in the interest rate that will be paid to members,” Mr Kasaija said at a press briefing this morning. The total interest payout will total Shs606b, up from Shs515b due to the higher number of savings. The amount will be credited on member accounts based on their balances as at July 1, 2016.

The decision of the minister to slash the rate was informed by a Shs150b drop in the Fund’s after tax profit. On Monday, the Fund revealed that the after tax profit declined to Shs491b from Shs630b in 2014/15 on account of a slowing economy, depreciating shilling and a decline in the value of the stock exchanges in Kenya, Uganda and Tanzania. NSSF is restricted to only invest in East Africa.
The total interest payout will total Shs606b, up from Shs515b due to the higher number of savings.