The National Social Security Fund (NSSF) of Uganda has received a dividend of Shs 42.6 billion from its investment in Airtel Uganda for the 2025 financial year. This significant payout was announced by Airtel Uganda's managing director, Sumendra Sahu, during a cheque handover ceremony. The dividend payment is a result of NSSF's investment in Airtel Uganda, which was listed on the Uganda Securities Exchange (USE) in 2023.
NSSF purchased approximately 4.21 billion Airtel Uganda shares for around Shs 199 billion, with a public offer price of Shs 100 per share. However, the fund's effective purchase price was reduced to Shs 47.17 per share due to a volume discount. By the end of June 2026, the shares had appreciated to Shs 152, representing a gain of over 100 per cent. This investment gives NSSF an approximately 10.6 per cent stake in Airtel Uganda, held on behalf of its 2.6 million members.
The dividend payout from Airtel Uganda is a significant contributor to NSSF's overall performance. According to NSSF managing director Patrick Ayota, the fund received Shs 8 billion in dividends when Airtel first listed and Shs 31.7 billion for 2024. With the latest payout, cumulative dividends from Airtel Uganda now stand at Shs 82.3 billion. Ayota noted that Airtel's dividend contribution has grown steadily over the years.
The Shs 42.6 billion dividend payout from Airtel Uganda is equivalent to roughly two percentage points of NSSF's record 22.53 per cent interest rate for the 2025/26 financial year. Ayota estimated that about Shs 250 billion is required to generate one percentage point of interest for NSSF members. He attributed the fund's record interest payout to its diversified investment portfolio across Uganda, Kenya, Tanzania, and Rwanda, as well as across sectors including telecommunications, banking, and breweries.
NSSF's investment strategy involves reviewing its holdings annually and selling only when it determines that a stock's value has been exhausted. Ayota described Airtel Uganda as an "amazing value" for the country, citing its steady growth and contribution to the fund's performance. As of June, NSSF's assets under management grew by 26 per cent, from Shs 26 trillion to Shs 32.8 trillion.
The fund's asset allocation as of June consisted of 76.8 per cent in fixed-income instruments, 18.4 per cent in equities, and 4.8 per cent in real estate. NSSF has also raised its 2035 assets-under-management target from Shs 50 trillion to Shs 80 trillion. Additionally, the fund's voluntary savings scheme, launched 22 months ago, has attracted over 120,000 members and Shs 217 billion in savings.
Ayota responded to social media claims questioning the fund's returns, including allegations that NSSF invested in drug cartels and cryptocurrency. He attributed the scepticism to Ugandans' tendency to "sometimes not believe good news." Meanwhile, Airtel Uganda has launched satellite-powered mobile connectivity through a partnership with Starlink, extending coverage to areas where building terrestrial networks is difficult.
Key points
- NSSF received Shs 42.6 billion in dividends from Airtel Uganda for the 2025 financial year.
- The investment gives NSSF an approximately 10.6 per cent stake in Airtel Uganda, held on behalf of its 2.6 million members.
- NSSF's record 22.53 per cent interest rate for the 2025/26 financial year was partly driven by Airtel Uganda's dividend contribution.
