Monday, September 22, 2025

NSSF ANNOUNCES RECORD 13.5 PCT INTEREST

Finance Minister Matia Kasaija set the room alight when he announced that the National Social Security Fund (NSSF) will pay its members an interest of 13.5 percent for the 2024/25 financial year. 

This is the highest rate the Fund has reported since the 15 percent of 2017/18.

In a country where inflation averaged just under four percent, the number is not just generous, it is transformative. It is the highest rate in four years, eclipsing last year’s 11.5 percent, the 10 percent in 2022/23, and the 9.65 percent declared in 2021/22. Only the pandemic-era payout of 12.5 percent comes close. For millions of Ugandans saving with the Fund, it is a moment of vindication.

The numbers behind the announcement tell a story of resilience and scale. NSSF’s income grew by 11 percent to sh3.51 trillion, up from sh3.18 trillion the previous year. Interest income surged to sh2.88 trillion, dividends from regional equities rose to sh238 billion, and real estate contributed 16.6 billion. These gains more than compensated for losses from currency fluctuations and a write-down on the UMEME stake. 

Chief Executive Officer Patrick Ayota described the result as “a year of disciplined execution, strong returns from fixed income, and a rebound in regional markets.” In his words, the Fund had kept its promise to beat inflation by at least two percentage points.

The Fund’s assets now stand at sh26 trillion, well above the 20 trillion shilling target set for 2025. Contributions crossed sh2 trillion for the first time, showing that more Ugandans are trusting the system with their savings. 

Membership has climbed to 3.4 million, with both mandatory and voluntary savers playing their part. Smart Life, the voluntary savings product, is drawing in low-income earners who had previously been left out of the formal safety net. 

“Our Smart Life product is evidence that saving is no longer a preserve of the formal worker. Everyone can and should build their financial security,” Ayota said.

Beyond the immediate excitement of the payout, the larger transformation lies in what the Fund is becoming. NSSF is no longer just a retirement scheme. Its Vision 2035 is anchored in expanding membership to 15 million Ugandans, growing assets to 50 trillion, and rolling out products that speak to a wider view of social security. Health insurance, estate planning, social investments, and support for enterprises under the Hi-Innovator program are all part of the mix. 

NAMCO, the partnership aimed at integrating farmers into savings through stronger market access, points to an even bigger ambition: reshaping Uganda’s savings culture.

For the economy, the Fund has become indispensable. It holds nearly a quarter of government domestic debt and more than a trillion shillings in local companies. That kind of presence means NSSF is both a stabilizer and a catalyst. When it invests, jobs are created, capital markets deepen, and confidence spreads. When it pays out, members spend or reinvest, circulating wealth back into the economy.

The 13.5 percent rate will raise expectations, and rightly so. Whether it can be sustained in a volatile regional environment will depend on governance, diversification, and discipline. But for now, savers can smile. 

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