Overview:

This came after the Fund's managing director, Patrick Ayota said they had reached Shs20 trillion target for June 2025 earlier this year, approximately 18 months ahead of schedule.

Contributors to the National Social Security Fund (NSSF ) will receive 11.5 percent interest they earned this year, Finance minister Matia Kasaija has announced.

This was after the Fund reported a marginal increase in profits.

“The fund is indeed growing, moving from UGX 18.56 trillion in FY 2022/23 to UGX 22.13 trillion in FY 2023/24—an increase of 19.2%. The interest rate is slightly above UGX 2 trillion, marking the highest amount of money ever paid in interest to NSSF members; As per the NSSF Act for FY 2023/24, I declare an interest rate of 11.5%,” Kasaija said.

  He said the Fund is investing in the right assets in fixed income, real estate, and equities.

“The delicate balance between risk and return is demonstrated by the concentration primarily in Fixed Income (79.2 percent), which is by far the safest investment asset. The Fund is preserving and growing the value of members’ savings having consistently paid more than 2 percent above the 10-year average rate of inflation for more than 10 years and counting,” Mr Kasaija said.

This came after the Fund’s managing director, Patrick Ayota said they had reached Shs20 trillion target for June 2025 earlier this year, approximately 18 months ahead of schedule.

“Last year, we collected Shs1.9 trillion on your behalf and generated interest that was credited to your account. For every shilling spent on expenses, we created a value of 18 shillings. In comparison, Kenya’s figure stands at 8 shillings, while Tanzania’s is 5 shilling,” Mr Ayota said.

The Fund is now targeting to grow to Shs50 trillion and cover half the population by 2035. NSSF investments are held in treasury bonds (79.2 percent), equities (13.1 percent) and real estate (7.7 percent).

Patrick Ayota, the NSSF Managing Director: We want to focus a lot on the value we create. The fund belongs to the member, and our priority is the member. Globally, there are about 332 pension funds our size. We did a benchmark against these pension funds to understand how they are creating value for their members through investments. The average index was 3.3 for the metrics used. There was one metric dot at 7.6, and it was NSSF Uganda. Many pension funds benchmark with us because of our strategic investment allocation