Uganda’s Pension Fund Reduces Interest Rate, Monitor Reports

Uganda’s National Social Security Fund cut interest rates on members’ contributions to 6 percent this year from 7 percent in 2010 because of a slowdown in the economy and costs incurred in a law suit, Daily Monitor reported, citing Richard Byarugaba, the managing director.

The fund is required to deposit 13 billion shillings ($5 million) with the Supreme Court over a law suit by a Kenyan company contesting the NSSF’s cancellation of a building contract, the Kampala-based newspaper reported. Uganda’s inflation rate in September accelerated to 28.3 percent, the highest in 18 years, from 21.4 percent in August, it said.