The National Social Security Fund (NSSF) in Uganda has announced that it will pay a 22.53 percent interest rate to its member-savers for the year 2025/2026. This was revealed by Henry Musasizi, the Minister of Finance, Planning and Economic Development, at the 14th Annual Members' Meeting. The interest payout is expected to total 5.44 trillion shillings, the highest interest and volume paid in the history of the fund.
According to the NSSF, the interest rate for the year 2024/2025 was 13.5 percent, which translated to about 2.5 trillion shillings in value terms. The fund has recorded significant growth, with an 86 percent surge in annual revenues to a record 6.51 trillion shillings. Assets under management have also increased from 26 trillion shillings to 32 trillion. Member contributions rose 13 percent to 3.4 trillion, while 1.5 trillion shillings was paid out to qualifying savers.
The NSSF's Managing Director, Patrick Ayota, attributed the revenue performance to the growth of the economy, the good performance of the stock markets in East Africa, and the appreciation of currencies against the Ugandan shilling. The fund aims to expand its active membership to 15 million savers by 2030, as part of its 10-year strategic plan. It also aims to scale total assets to 50 trillion and eventually 80 trillion shillings by 2035.
Henry Tumukunde, the Minister for Gender, Labour and Social Development, challenged the NSSF Board and Management to ensure that the value of the Fund, which is approximately 9 billion dollars, is reflected in the national development agenda. He urged them to move away from a "Parastatal style" of management to a private sector mindset of management. Tumukunde also emphasized the need to hire based on competence, rather than just academic papers.
The NSSF has invested in various government infrastructure projects, including the Kampala-Jinja Expressway. The fund's chairman of the Board of Directors, David Ogong, noted that their investment efforts are limited by the law, despite having more investable resources. The Minister for Gender, Labour and Social Development vowed to have defaulting employers deregistered by the Ministry of Trade.
Finance Minister Musasizi commended the NSSF for its investments in government programmes and pledged to continue supporting the fund to balance its investments with creating value for the savers. The NSSF's interest rate has fluctuated over the years, ranging from 9.65 percent in 2022 to 13.5 percent in 2025. The fund's performance has been steadily increasing, with a 10 percent interest rate in 2023.
The NSSF's growth has been impressive, with a significant increase in interest rates over the years. In 2012, the interest rate was 10 percent, while in 2013 it was 11.23 percent. The fund's interest rate has continued to rise, with 11.50 percent in 2014, 13 percent in 2015, and 12.30 percent in 2016. The NSSF's performance is a positive indicator of Uganda's economic growth and the fund's ability to provide for its members.
Key points
- The NSSF will pay a 22.53 percent interest rate to its member-savers for the year 2025/2026.
- The fund has recorded an 86 percent surge in annual revenues to a record 6.51 trillion shillings.
- The NSSF aims to expand its active membership to 15 million savers by 2030.
