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NSSF revenue increases by 15% to Shs 2.2 trillion

NSSF MD Patrick Ayota

NSSF MD Patrick Ayota

The National Social Security Fund (NSSF) revenue increased by 15 per cent from Shs 1.9 trillion to Shs 2.2 trillion for FY ended June 30, 2023, managing director Patrick Ayota has announced.

Addressing the media at the NSSF annual media round table, Ayota attributed the growth to increased earnings from interest income from Shs 1.79 trillion to Shs 2 trillion and dividend income which grew from Shs 84 billion to Shs 139 billion.

Income from the fund’s real estate projects also slightly increased from Shs 13.4 billion to Shs 14 billion and Shs 16 billion was earned from other incomes.

“Overall, the investment environment in Uganda and the region was challenging over the last financial year. However, the fund was able to increase its revenue owing to strategic asset allocation that enabled us to remain profitable despite a generally depressed market,” he said.

“Although inflation remained under control at 4.8 per cent, the reduction in the value of the stock markets in Uganda and Kenya, the appreciation of the Uganda shilling against the regional currencies and the reduction in long-term bond yields increased pressure on the fund’s performance. For us to post a 15 per cent increase in revenue shows our resilience and an astute investment risk balance,” Ayota added.

Even though there was a reduction in value in the stock markets in Uganda, Kenya, Tanzania and Rwanda where the fund holds several investments, and a significant appreciation of the Uganda shilling against major currencies mainly the Kenyan shilling which depreciated by 22.2 per cent against the Uganda Shilling, Ayota maintains that the fund’s financial position is stable and the assets under management continue to grow.

“Our assets under management increased from Shs 17.26 trillion in financial year 2021/22 to Shs 18.56 trillion in financial year 2022/23. This growth was driven by an increase in member contributions, increased realized income, and a cost management strategy that enables us to create more value for the member at a lower cost compared to the previous financial year. In fact, with the current asset base, we project that the strategic goal of growing the assets under management to Shs 20 trillion by 2025 will be achieved by June 30, 2024, one year ahead of schedule,” Ayota said.

Results from the fund further show that member contributions increased by 15 per cent from Shs 1.49 trillion to Shs 1.72 trillion, the cost of administration reduced from 1.18 per cent to 1.02 per cent while paid to qualifying members increased by 1 per cent from Shs 1.189 trillion to Shs 1.199 trillion.

Ayota assured NSSF members that the fund is in a better financial position going forward and the focus has now shifted to ensuring its long-term sustainability.

“Our new “Vision 2035” is the bedrock of our long-term strategic focus – where we want to grow the fund to Shs 50 trillion, cover at least 50 per cent of the working population and achieve 95 per cent and both customer satisfaction and staff engagement,” he said.

This Tuesday September 26, the ministry of Finance is expected to declare this financial year’s interest rate which will be paid to members off their savings during the fund’s 11 annual members meeting.

jjingoernest1@gmail.com

Comments

+1 #1 Wante Martino 2023-09-25 12:01
With all due Respect Mr. Ayota, you have started of on a bad footing, who is supposed to Inform Savers of the Interest rate, we know previously it was the MD, what has happened, mukyeyiiya, Kasaija from previous experience we know what he ca be "Told" to Do by President!
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