NSSF savers earn record 22.53 per cent interest

KAMPALA. National Social Security Fund (NSSF) members will earn a record 22.53 per cent interest on their savings for the financial year 2025/26, translating into a Shs5.44 trillion payout, the highest in the Fund’s history.

The rate, announced Thursday at NSSF’s 14th Annual Members’ Meeting, represents a significant increase from the 13.5 per cent declared for the previous financial year, when members earned about Shs2.5 trillion in interest.

Finance Minister Henry Musasizi attributed the latest payout to the Fund’s strong financial performance, saying the returns demonstrate the growth of members’ savings.

The Shs5.44 trillion interest payout means members will receive more than twice the amount declared for the 2024/25 financial year.

NSSF’s revenues increased by 86 per cent to a record Shs6.51 trillion, while assets under management grew from about Shs26 trillion to Shs32 trillion during the year.

Member contributions also increased by 13 per cent to Shs3.4 trillion, while Shs1.5 trillion was paid out to qualifying savers.

NSSF managing director Patrick Ayota attributed the Fund’s performance to the growth of the economy, strong performance of stock markets in East Africa where the Fund has invested, and appreciation of regional currencies against the Uganda shilling, among other factors.

The latest return comes as NSSF pursues an ambitious expansion plan under its 10-year strategy, targeting 15 million active members by 2030 and assets of Shs50 trillion, before growing them to Shs80 trillion by 2035.

However, the Fund’s growing financial muscle also attracted calls for greater participation in national development.

Gender, Labour and Social Development Minister Henry Tumukunde challenged the NSSF board and management to ensure that the Fund’s growing value—estimated at about $9 billion—is reflected in the country’s development agenda.

“This money should be turning around the economy. It must change the economy!” Gen Tumukunde said.

He urged the Fund to abandon what he described as a “parastatal style” of management and adopt a private-sector approach, including recruiting and retaining staff based on competence rather than academic qualifications.

“If you see someone not performing to your expectations, just let them go,” he said.

The minister also challenged the board on whether the Fund was obtaining the best possible returns from its investments.

Mr Ayota earlier listed several government infrastructure projects that NSSF is expected to finance, including the proposed Kampala-Jinja Expressway.

NSSF Board chairman David Ogong, however, said the Fund’s investment options were constrained by the law, despite its growing pool of investable resources.

The Fund has also been pushing to expand coverage, particularly among employers who do not remit contributions for their workers.

Mr Musasizi commended NSSF’s investment in government programmes and said the Finance ministry would continue supporting the Fund to strike a balance between investing in national development and creating value for members.

Meanwhile, Gen Tumukunde warned employers who default on NSSF contributions that the government would move against their businesses.

He said defaulting employers could be recommended for deregistration and have their trading licences revoked.

NSSF’s latest declaration comes at a time when the Fund is seeking to widen coverage beyond the formal workforce while growing its investment portfolio to support higher returns for members.