In an interaction session held at the Hotel Triangle in Mbarara City, savers belonging to the National Social Security Fund (NSSF) hailing from Western Uganda expressed their desire for the Fund to initiate investments in their region. They claimed that the Fund has predominantly concentrated its investments in the central region, neglecting other areas.
Solomon Akankwasa, an employee at EBO SACCO, voiced his concerns about the Fund’s investment criteria, highlighting the concentration of NSSF investments in Kampala. He pointed out that numerous investment opportunities are available in other regions.
Mujibu, referring to the Fund’s real estate investments, pointed out that these investments are primarily located in the central region, including projects such as the Lubowa housing project, Citadel Apartments Mbuya, Pension Towers, and Temangalo. This prompted questions about whether savers with lower savings are taken into consideration when making such investments. Mujibu emphasized that the cost of these houses exceeds 200 million shillings, while approximately 83% of savers have savings below 10 million shillings.
Patrick Ayota, the Managing Director of NSSF, disclosed the Fund’s intention to commence regional investments, with a strong focus on real estate, following the completion of office construction. He also mentioned the possibility of collaborating with local private developers to allocate land and construct housing at costs determined by the Fund.
During the meeting, Ayota revealed that, for the financial year 2022/23, NSSF disbursed over 122 billion shillings to 7,283 eligible members in Western Uganda, constituting approximately 16% of the total number of members who received benefits during that period. Ayota acknowledged the challenging environment characterized by declines in value across East African stock markets and increased scrutiny during the third quarter of the just-concluded financial year. Nonetheless, he highlighted the Fund’s strong performance across various Key Performance Indicators in FY2022/23.
Ayota also expressed concern regarding the low NSSF compliance rate in the Western region, which stands at 48%, the lowest compared to other regions.
