NSSF announces record-shattering 22.53% interest to members for FY 2025/26

The National Social Security Fund (NSSF) has declared a record 22.53 per cent interest rate for members for the 2025/26 financial year, following strong growth in income and investments.

The rate is the highest declared in the Fund's 40-year history and will see Shs5.44 trillion credited to members' accounts.

The announcement was made during NSSF's 14th Annual Members Meeting.

The minister of Finance Henry Musasizi said the amount distributed to members is about Shs2.64 trillion higher than last year's allocation.

"It gives me pleasure to note the record-level performance of the Fund," the minister said.

"This is not accidental. It is due to the strong leadership at NSSF."

The minister also congratulated NSSF for consolidating its position as the largest retirement benefits fund in East Africa.

"The interest translates to a total of Shs5.44 trillion, which is to be shared among the savers."

Musasizi then declared an interest rate of 22.53 per cent for the financial year.

NSSF Managing Director Patrick Ayota said the Fund recorded a strong performance during the year.

"Last year was a good year," Ayota said.

NSSF's total income grew by 85 per cent to Shs6.15 trillion. Of this, Shs3.88 trillion came from realised revenue, while Shs2.62 trillion came from fair-value and foreign-exchange gains.

Member contributions also increased by 14 per cent, from Shs2.13 trillion in the previous financial year to Shs2.42 trillion.

NSSF paid Shs1.5 trillion in benefits to 50,499 members during the year.

It also reactivated 55,000 dormant members.

Ayota said the Fund had targeted enrolling 300,000 new working Ugandans during the first year of its new strategy. It surpassed the target after attracting 311,000 new savers.

NSSF currently has 3.6 million registered members, of whom about 2.7 million have balances with the Fund.

Ayota said NSSF's 10-year strategy, which runs until 2035, seeks to increase the number of Ugandans saving with the Fund to 15 million.

The Fund also wants to grow its assets to Shs80 trillion.

The original target was Shs50 trillion, but NSSF revised it upwards after assessing the Fund's growth trajectory.

"When we started out with this strategy, the target was Shs50 trillion, but when we saw the trajectory we were moving on, we recommended to the board to adjust it to Shs80 trillion," Ayota said.

NSSF invested Shs4.32 trillion in Uganda's economy during the last financial year. About 76 per cent went into government bonds, while 18 per cent went into equities, including companies such as MTN and Airtel.

The Fund has also invested more than Shs10 trillion in Kenya, Tanzania and Rwanda as part of its regional diversification strategy.

Ayota said NSSF's growth reflects its confidence in Uganda's economy as the Fund marks four decades of operation.

"This is the 40th year of NSSF. We have been part of this economy, and we believe in it and in this country," he said.