NSSF Uganda posts Shs6.5 trillion revenue as payouts climb

KAMPALA. National Social Security Fund (NSSF) earnings surged by 85 per cent to Shs6.51 trillion in the year ended June, even as the number of members qualifying for retirement benefits continued to rise.

The strong financial performance has expanded the Fund’s assets to Shs32.8 trillion, up from Shs26 trillion a year earlier, putting NSSF in a stronger position to reward savers and finance long-term investments.

But the growing size of the Fund is coming alongside a rising bill for retirement benefits.

NSSF paid Shs1.55 trillion to 46,000 qualifying beneficiaries during the financial year, a 17 per cent increase from the previous year.

The number of members reaching the retirement age of 55 also rose sharply, with 88,000 members becoming eligible for benefits worth Shs998 billion, compared with 67,000 members who qualified for Shs790 billion in the 2024/25 financial year.

NSSF managing director Patrick Ayota attributed the increase in payments to growth in members’ savings and improvements in the processing of claims.

He said automation had reduced the average turnaround time for benefit payments to about four-and-a-half days, from about two weeks in 2022.

The figures were released on Wednesday, September 16, 2026, ahead of the Fund’s Annual Members’ Meeting next week, where the Minister of Finance, Planning and Economic Development is expected to announce the interest rate to be paid to NSSF savers.

The rate is determined partly by the Fund’s annual surplus and its policy of seeking to give members a return of at least two percentage points above the 10-year average inflation rate.

Investment income drives growth

Of the Shs6.51 trillion revenue recorded during the year, Shs3.88 trillion was realised income, largely generated from investments in government securities.

Interest income rose by 21 per cent to Shs3.49 trillion, while dividends from investments in other companies amounted to Shs369 billion.

Mr Ayota said investments in sectors such as banking, telecommunications and breweries performed strongly during the year, supporting the Fund’s investment returns.

He also attributed part of the increase to movements in the value of the shilling against regional currencies and the US dollar.

The Fund’s investment portfolio remains heavily weighted towards government securities, which account for 76 per cent of its investments through Treasury bonds and bills.

The concentration means NSSF remains an important source of long-term financing for government, while also earning income for its members.

Infrastructure push

With its asset base now above Shs32 trillion, NSSF is seeking to increase its role in financing Uganda’s infrastructure, starting with the Kampala-Jinja Expressway.

Mr Ayota said the Fund had reached an agreement with government on financing the project and was considering other expressway projects.

He said government would be expected to undertake preparatory work, including feasibility studies and acquisition of rights of way, before NSSF commits funds.

“By the way, once the projects are ready for investment, we are prepared to provide financing,” Mr Ayota said.

The move would give NSSF an opportunity to deploy more of its long-term savings into domestic infrastructure while generating returns for members.

Savings continue to grow

Members deposited Shs2.42 trillion in new savings during the year, a 13 per cent increase from the previous financial year.

The growth reflects an expansion of the Fund’s contribution base as well as continued accumulation of retirement savings.

NSSF is also seeking to widen participation beyond the mandatory scheme through its Smart Life voluntary savings product.

The scheme has mobilised Shs180 billion in its first 20 months and now has 135,000 accounts.

Smart Life allows savers to contribute from as little as Shs5,000, targeting workers and other Ugandans who may not be covered by the mandatory NSSF scheme.

NSSF data shows that 64.35 per cent of Smart Life savers are putting money aside for purposes including investment, financial independence and school fees.

The Fund’s latest results therefore present two sides of its expanding role in the economy: a growing investment institution with more than Shs32 trillion under management, and a retirement fund facing an increasing number of claims as its membership ages.

The interest rate announced at next week’s members’ meeting will determine how much of the Fund’s latest performance ultimately accrues to savers.