National Social Security Fund (Uganda)

Last updated

National Social Security Fund Uganda
Native name
NSSF Uganda
Company typeQuasi-government
IndustrySocial Security
Founded1985;39 years ago (1985)
Headquarters14th Floor Workers House
1 Pilkington Road
Kampala, Uganda
Key people
Peter Kimbowa
Chairman
Patrick Ayota
Managing Director
Gerald Kasaato
Deputy Managing Director. [1]
Products Investments
RevenueIncrease2.svg Pretax:Sh2.2 trillion (US$589.85 million) (June 2023) [2]
Total assets UGX:18.58 trillion (US$4.981 billion) (June 2023) [2]
Website Homepage

The National Social Security Fund (NSSF) (also NSSF Uganda), is a quasi-government agency responsible for the collection, safekeeping, responsible investment, and distribution of retirement funds from employees of the private sector in Uganda who are not covered by the Government Retirement Scheme. Participation for both employers and employees is compulsory. The Uganda National Social Security Fund is the largest pension fund in the countries of the East African Community, with total assets of USh18.58 trillion (approx. US$4.981 billion), as of June 2023. [2]

Contents

History

In February 2009, the President of Uganda fired the minister of finance, whose ministry supervises the activities of NSSF. Also terminated were the managing director of the NSSF. A new board of directors and a new management team were appointed in 2009. [3]

In late 2010, NSSF underwent a restructuring process aimed at making it more efficient, competitive, and responsive to the needs of its members. It was then poised to provide a wide range of social security products and be the lead institution for domestic capital formation and deepening the financial sector. [4] Analysts in the country said in 2013 that the NSSF had become a leading player in the country's economy. [5]

Investment portfolio

In July 2018, the fund's investments included (a) fixed income investments, accounting for 77 percent of all investments (b) equities on the security exchanges of the East African countries, accounting for 17 percent and (c) real estate investments, which are 6 percent of the total portfolio. [6]

Significant real estate holdings include Workers' House in the centre of Kampala, Uganda's capital city, where NSSF maintains its head office, and City House Jinja, in Jinja, developed between 2015 and 2018, at a cost of USh3.5 billion (approx. US$1 million). [7]

According to its financial statements for the year ending 30 June 2014, NSSF had UGX:2.65 trillion in government treasury bonds (with yields ranging from 10.25 to 14.35 percent), UGX:682.1 billion on deposit with commercial banks, UGX:251.3 billion in equity investments at fair value through profit or loss (EPL), UGX:250.2 billion in capital work-in-progress, UGX:193.7 billion in investment properties, UGX:143.2 billion in corporate bonds (with yields ranging from 11.03 to 17.00 percent), UGX:73.3 billion in equity securities held-for-trading by fund managers (HFT), and UGX:14.6 billion in cash and bank balances. [8] : 15  Based on market value as of 30 June 2014, NSSF's largest investments in equity securities were as follows: [8] : 41–42, 44 

Operations and economic performance

The NSSF is a defined contribution scheme and is financed largely by contributions from employers and employees. The total contribution is equal to 15 percent of an employee's gross salary, with the employer contributing 10 percent and the employee 5 percent. [8] : 18  The NSSF pays five types of benefits: [8] : 18 

The NSSF's total assets as of 30 June 2014, were valued at UGX:4.4 trillion. [8] : 15  In October 2017, The Independent, a Ugandan English language newspaper, estimated the NSSF total assets at USh7.9 trillion (approximately US$2.48 billion at that time), as of 30 June 2017. [9] By June 2018, those assets had increased to USh9.98 trillion ($2.678 billion). [10] As of 30 June 2020, NSSF Uganda managed a total asset portfolio of USh13.38 trillion ($3.627 billion). This was a 17 percent increase from UGX11.3 trillion ($3.064 billion), as of 30 June 2019. [11] As of June 2021, NSSF Uganda controlled UGX:15.5 trillion (US$4.406 billion) in total assets. [12] NSSF Uganda controlled total assets valued at UGX:18.58 trillion (US$4.981 billion), as of 30 June 2023. [2]

Pension Towers

Beginning in the early 2000s, NSSFU has been developing an office complex known as Pension Towers, along Lumumba Avenue, on Nakasero Hill, one of the most prestigious neighborhoods in Kampala, Uganda's capital city. The complex consists of three interconnected towers; one central tower of twenty-five stories in height, flanked on either side by a ten-story tower. Roko Construction Company, a Ugandan construction company constructed the four basement floors between 2008 and 2012, but failed to qualify for further works on the project. Three Chinese firms are in a final bidding process to complete the construction, between 2012 and 2015. Construction costs for the complex are estimated at UGX:260 billion. [13] When finished, the three towers will contain in excess of 59,410 square metres (639,500 sq ft) in office space. Parking for over 500 vehicles will be provided in the development. [14]

City House Jinja

Jinja City House is owned by the Uganda National Social Security Fund (NSSF), who developed the building, between 2015 and 2018. The building houses the NSSF offices in Jinja and the remaining space is rented out to qualified businesses and corporations. The mixed use building consists of 1,500 square metres (16,146 sq ft) on four floors, of which 1,200 square metres (12,917 sq ft) are rentable. NSSF will occupy the remaining 300 square metres (3,229 sq ft). [15]

NSSF Mbarara Complex

Mbarara City House, is the second NSSF real estate investment outside the capital city of Kampala. It was developed at a cost of USh3.9 billion (approximately US$1.2 million), between 2017 and 2019. [16]

Governance

Board of directors

Ugandan Minister of Finance Matia Kasaija appointed a new board of directors in September 2023, composed of the following members: [17]

  1. Dr David Ogong: Chairman
  2. Aggrey David Kibenge
  3. Silver Mugisha
  4. Ramathan Ggoobi
  5. Annet Birungi
  6. Patrick Ayota: Managing Director and CEO.
  7. Peninnah Tukamwesiga
  8. Sam Lyomoki
  9. Annet Mulindwa Nakawunde
  10. Richard Bigirwa

Management

The management of the NSSF consisted of the following individuals as of September 2023: [17]

Branch network

As of June 2019, NSSF had a branch network of 19 branches in the central, eastern, northern, and western parts of Uganda, with six in Kampala, the capital. [19]

  1. Head Office: Workers House, One Pilkington Road, Kampala
  2. Bugoloobi Branch: Bugoloobi
  3. Kireka Branch: Kireka
  4. Entebbe Branch: Entebbe
  5. Kawempe Branch: Kawempe
  6. Bakuli Branch: Bakuli
  7. Arua Branch: Arua
  8. Gulu Branch: Gulu
  9. Lira Branch: Lira
  10. Soroti Branch: Soroti
  11. Mbale Branch: Mbale
  12. Jinja Branch: City House Jinja, Jinja [15]
  13. Lugazi Branch: Lugazi
  14. Masaka Branch: Masaka
  15. Masindi Branch: Masindi
  16. Hoima Branch: Hoima
  17. Fort Portal Branch: Fort Portal
  18. Mbarara Branch: NSSF Mbarara Complex, Mbarara [16]
  19. Kabale Branch: Kabale

See also

Related Research Articles

Before Uganda's independence in 1962, the main banks in Uganda were Barclays ; Grindlays, Standard Bank and the Bank of Baroda from India. The currency was issued by the East African Currency Board, a London-based body. In 1966, the Bank of Uganda (BoU), which controlled the issue of currency and managed foreign exchange reserves, became the central bank and national banking regulator. The government-owned Uganda Commercial Bank and the Uganda Development Bank were launched in the 1960s. The Uganda Development Bank is a state-owned development finance institution, which channeled loans from international sources into Ugandan enterprises and administered most of the development loans made to Uganda.

Housing Finance Bank (HFB) is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the national banking regulator.

<span class="mw-page-title-main">Stanbic Bank Uganda Limited</span> Commercial bank in Uganda

Stanbic Bank Uganda Limited (SBU) is a commercial bank in Uganda and is licensed by the Bank of Uganda, the central bank and national banking regulator.

<span class="mw-page-title-main">DFCU Bank</span> Commercial bank in Uganda

DFCU Bank, registered as the Development Finance Company of Uganda Bank Limited, is a commercial bank in Uganda. It is licensed by the Bank of Uganda (BoU), Uganda's central bank and national banking regulator.

Diamond Trust Bank Uganda Limited (DTBUL), is a commercial bank headquartered in Uganda. It is licensed and supervised by the Bank of Uganda, the central bank and national banking regulator.

<span class="mw-page-title-main">Bank of Africa Uganda Limited</span> Ugandan commercial bank

Bank of Africa Uganda Limited, also known as BOA Uganda (BOAU), is one of the commercial banks in Uganda that have been licensed by the Bank of Uganda, the country's central bank and national banking regulator.

<span class="mw-page-title-main">Ecobank Uganda</span> Commercial bank in Uganda

Ecobank Uganda is a bank in Uganda that operates as a commercial bank under a license granted by the Bank of Uganda, the central bank and national banking regulator.

<span class="mw-page-title-main">Equity Bank Uganda Limited</span> Bank in Uganda

Equity Bank Uganda Limited (EBUL), is a commercial bank in Uganda. It is licensed by the Bank of Uganda, the central bank and national banking regulator. EBUL is a subsidiary of Equity Group Holdings Limited, a financial service conglomerate with headquarters in Kenya and subsidiaries in six countries of the African Great Lakes Region.

National Insurance Corporation Limited, commonly referred to as National Insurance Corporation (NIC), is an insurance company in Uganda. The company is a leading provider of insurance and risk management services in the country.

<span class="mw-page-title-main">Umeme</span> Ugandan publicly-owned electricity distribution company

Umeme Limited is the largest energy distributor in Uganda, distributing about 97 percent of all electricity used in the country. The shares of the stock of the company are listed on the Uganda Securities Exchange (USE) and are cross listed on the Nairobi Stock Exchange (NSE). As of December 2023, the company's total assets were approximately UGX:2.347 trillion, with shareholders' equity of approximately UGX:937.381 billion.

PostBank Uganda is a commercial bank in Uganda, licensed and supervised by the Bank of Uganda, the country's central bank and national banking regulator. The bank received her tier-1 banking license in December 2021.

<span class="mw-page-title-main">Uganda Clays Limited</span> Ugandan publicly traded company

Uganda Clays Limited (UCL), commonly referred to as Uganda Clays, is a building materials manufacturer in Uganda. The company manufactures baked clay building products, using Italian-made heavy clay processing machinery. The clay is excavated using surface mining techniques. The company is listed on the Uganda Securities Exchange (USE), being the first equity to list on the exchange in 2000.

<span class="mw-page-title-main">Absa Bank Uganda Limited</span> Commercial bank in Uganda

Absa Bank Uganda Limited, formerly known as Barclays Bank of Uganda Limited, is a commercial bank in Uganda. It is licensed by the Bank of Uganda, the central bank and national banking regulator. The bank is a subsidiary of Absa Group Limited, a financial services conglomerate, based in South Africa, with banking subsidiaries in 12 African countries and representative offices in two other African countries. Absa Bank Group, whose shares trade on the JSE Limited, was reported to have total assets in excess of US$91 billion, as of October 2019. 

Pride Microfinance Limited (PMFL), is a microfinance deposit-taking institution (MDI) in Uganda. It is licensed by the Bank of Uganda, the central bank and national banking regulator.

Finance Trust Bank (FTB), commonly called Finance Trust, is a commercial bank in Uganda. It is licensed by the Bank of Uganda, the central bank and national banking regulator.

Opportunity Bank Uganda Limited (OBUL), is a Tier II credit institution in Uganda. It was previously registered as a commercial bank by the Bank of Uganda, the central bank and national banking regulator. The institution received a commercial banking license on 25 September 2019.

<span class="mw-page-title-main">Standard Chartered Uganda</span> Commercial bank in Uganda

Standard Chartered Uganda, whose official name is Standard Chartered Bank Uganda Limited but is often referred to as Stanchart Uganda, is a commercial bank in Uganda. It is one of the banks licensed by the Bank of Uganda, the central bank and national banking regulator.

FINCA Uganda Limited, also known as FINCA Uganda, is a microfinance deposit-accepting institution (MDI) in Uganda. It is licensed and regulated by the Bank of Uganda, the central bank and national banking regulator.

Pension Towers is a building under construction in Kampala, the capital of Uganda and the largest city in that country.

NSSF Mbarara Complex, also Mbarara City House, is a building in Mbarara, a city in the Western Region of Uganda.

References

  1. ↑ Muhamadi Byemboijana (21 June 2024). "Gerald Paul Kasaato Appointed NSSF Deputy Managing Director". SoftPower Uganda. Kampala, Uganda. Retrieved 21 June 2024.
  2. 1 2 3 4 Martin Luther Oketch (21 September 2023). "NSSF investment income crosses Shs2 trillion mark". Daily Monitor . Kampala, Uganda. Retrieved 22 September 2023.
  3. ↑ Martin Ssebuyira, and Al-Mahdi Ssenkabirwa (14 May 2012). "Workers give government 14 days to name new NSSF board". Daily Monitor Mobile . Kampala. Retrieved 22 June 2018.
  4. ↑ Busuulwa, Bernard (3 April 2009). "NSSF turns to fund managers". The EastAfrican . Nairobi. Retrieved 22 June 2018.
  5. ↑ Kidimu, Gilbert (12 September 2013). "Workers to Benefit From Pension Reforms". New Vision . Kampala. Retrieved 22 June 2018.
  6. ↑ Kyatusiimire, Sharon (28 June 2018). "NSSF Launches Shs3.5 Billion Building In Jinja". Kampala: Chimp Reports Uganda. Retrieved 5 July 2018.
  7. ↑ Staff Writer (2 July 2018). "Kadaga Opens NSSF'S Jinja Office Complex". Red Pepper . Mukono. Retrieved 5 July 2018.
  8. 1 2 3 4 5 Uganda Auditor General (29 October 2014). "Financial Statements for the Year Ended 30th June, 2014, Together with the Report and Opinion Thereon of the Auditor General" (PDF). Kampala: Uganda Office of the Auditor General. Retrieved 22 June 2018.
  9. ↑ Businge, Julius (9 October 2017). "NSSF sees higher returns for savers in FY 2017/18". The Independent (Uganda) . Kampala. Retrieved 22 June 2018.
  10. ↑ CEO Magazine (23 September 2021). "NSSF earns UGX 1.8 Trillion in income, assets hit UGX 15.5 Trillion". CEO Magazine Uganda. Kampala, Uganda. Retrieved 25 September 2021.
  11. ↑ Eagle Uganda (28 September 2020). "NSSF declares 10.75% interest rate to members for FY 2019/20". Eagle Uganda Online. Kampala, Uganda. Retrieved 29 September 2020.
  12. ↑ Ali Twaha (24 September 2021). "NSSF total assets grow to sh15.5 trillion". New Vision . Kampala, Uganda. Retrieved 24 September 2021.
  13. ↑ Mugabe, David (23 May 2012). "NSSF constructs Uganda's tallest tower". New Vision . Retrieved 14 October 2015.
  14. ↑ NSSFU (2011). "Pension Towers to reduce office space shortage in Kampala". NSSF Uganda (NSSFU). Retrieved 14 October 2015.
  15. 1 2 Staff Writer (2 July 2018). "Kadaga Opens NSSF'S Jinja Office Complex". Red Pepper . Mukono. Retrieved 28 June 2019.
  16. 1 2 Christine Kasemiire (28 June 2019). "NSSF Diversifying Into Real Estate, Says Byarugaba". Daily Monitor . Kampala. Retrieved 28 June 2019.
  17. 1 2 NSSF Uganda (22 September 2023). "Board of Directors of NSSF Uganda". NSSF Uganda. Kampala, Uganda. Retrieved 22 September 2023.
  18. ↑ Dorothy Nakaweesi (14 March 2019). "Kasaija appoints new NSSF head of legal services". Daily Monitor . Kampala, Uganda. Retrieved 29 March 2019.
  19. ↑ NSSF (December 2018). "Branch Directory". National Social Security Fund of Uganda (NSSF). Retrieved 10 December 2018.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.