The National Social Security Fund (NSSF) in Uganda has declared a 22.53 percent interest rate for its member-savers for the year 2025/2026. This announcement was made by Henry Musasizi, the Minister of Finance, Planning and Economic Development, at the 14th Annual Members' Meeting. The interest rate is a result of the Fund's good performance.
The interest payout will total 5.44 trillion shillings, marking the highest interest and volume paid in the history of the fund. In comparison, for the year 2024/2025, NSSF declared an interest rate of 13.5 percent, which translated to about 2.5 trillion shillings in value terms. This significant increase reflects the Fund's strong financial performance.
NSSF has recorded an 86 percent surge in annual revenues to a record 6.51 trillion shillings. Additionally, assets under management have risen from 26 trillion shillings to 32 trillion. Member contributions have increased by 13 percent to 3.4 trillion, while 1.5 trillion shillings was paid out to qualifying savers. These figures demonstrate the Fund's growth and stability.
According to Managing Director Patrick Ayota, the revenue performance is attributed to the growth of the economy, the good performance of the stock markets in East Africa, where NSSF has invested significantly, and the appreciation of currencies. The Fund's investment strategy has yielded positive results, contributing to its financial success.
The NSSF aims to expand its active membership to 15 million savers by 2030, as outlined in its 10-year strategic plan. The Fund also targets scaling total assets to 50 trillion and eventually 80 trillion shillings by 2035. To achieve these goals, the Fund will focus on increasing membership and optimizing its investments.
Henry Tumukunde, the Minister for Gender, Labour and Social Development, has challenged the NSSF Board and Management to ensure that the value of the Fund, approximately 9 billion dollars, is reflected in the national development agenda. He emphasized that the Fund's investments should have a significant impact on the economy, urging a shift from a "Parastatal style" of management to a private sector mindset.
The NSSF Board and Management have been urged to prioritize competence when hiring and to take decisive action against underperforming employees. The Minister also highlighted several government infrastructure projects that the Fund plans to finance, including the Kampala-Jinja Expressway. The Fund's investment efforts are subject to legal limitations, despite having more investable resources.
Key points
- The NSSF has declared a 22.53 percent interest rate for its member-savers for the 2025/2026 year.
- The interest payout will total 5.44 trillion shillings, the highest in the fund's history.
- The Fund aims to expand its active membership to 15 million savers by 2030 and scale total assets to 50 trillion shillings by 2035.
