National Social Security Fund (NSSF) managing director Patrick Ayota has announced that the fund disbursed over UGX 122 billion to 7,283 eligible members in the western region during the fiscal year 2022/23. Ayota explained that this figure represents approximately 16% of the total number of members who received benefits from the Fund in that period.
Speaking to employers in Mbarara city at Hotel Triangle, Ayota revealed that the total benefits paid to eligible members had seen a marginal increase of 1%, rising from UGX 1.189 trillion in the fiscal year 2021/22 to UGX 1.199 trillion in 2022/23. He emphasized that these payouts demonstrate the safety of members’ savings with the Fund and their ability to access them when they qualify.
Ayota also provided information regarding the processing time for these benefits, noting that, on average, they were processed within 11 days. While acknowledging that this turnaround time remains higher than desired due to the new core system and delayed verifications from external partners, he highlighted that it marks significant improvement compared to the previous decade when benefits took 105 days to process.
In addition, Ayota shared the Fund’s overall impressive performance on key performance indicators for the fiscal year 2022/23. This success was achieved despite a challenging global environment, characterized by conflicts in Europe, investor shifts from developing markets to the US, declining values in East African stock markets, and increased scrutiny in the Fund’s operations during the third quarter of the recently concluded financial year. NSSF saw a 15% increase in revenue, growing from UGX 1.9 trillion to UGX 2.2 trillion. The assets under management also grew from UGX 17.26 trillion in the fiscal year 2021/22 to UGX 18.56 trillion in the fiscal year 2022/23. As a result, a 10% interest rate was declared, amounting to a total of UGX 1.591 trillion credited to member accounts.
However, Ayota highlighted that the western region exhibited the lowest compliance rate within NSSF at 48% compared to other regions. He urged employers to promptly remit social security contributions for their employees to avoid penalties.
During the meeting, employers also suggested that NSSF consider investing in affordable estates in upcountry areas rather than focusing solely on Kampala, where properties are costly. Ayota assured employers that such plans were already in the Fund’s program, and they could collaborate with a local developer in Mbarara to identify land and receive a guarantee to purchase it, enabling NSSF to offer affordable housing and stimulate the local economy.
