NSSF Earnings Soar to UGX 6.5 Trillion
BY D KASULE: The National Social Security Fund (NSSF) has reported earnings of UGX 6.51 trillion for the 2025/26 financial year, an 85 percent increase from the UGX 3.5 trillion recorded the previous year.
NSSF Managing Director Patrick Ayota announced the figures while presenting the fund’s annual performance report to journalists. He said the results mark the first year of NSSF’s new ten-year strategic plan, Vision 2035, which runs through 2035 following the conclusion of the previous ten-year cycle in June 2025.
Ayota attributed part of the fund’s strong performance to improved staff satisfaction, noting that employee engagement rose from 91 percent to 93 percent over the past year, about 15 percentage points above the African benchmark.
“Well-treated staff translate into better service for members,” Ayota said. He noted that the average time taken to process benefit claims had fallen from 10.9 days in 2023 to 5.6 days, which he described as an indicator of improved staff performance and service delivery.
He added that nearly all of NSSF’s internal transactions are now paperless. On the customer side, Ayota said satisfaction stood at 89 percent. According to the report, contributions collected from members increased by 13 percent, from UGX 2.13 trillion to UGX 2.42 trillion, while benefits paid out grew by 17 percent, from UGX 1.3 trillion to UGX 1.5 trillion.
“About 46,000 members received payouts during the year, similar to the previous year’s numbers,” Ayota said, adding that the payments were processed faster than before.
On investments, Ayota said 76.5 percent of NSSF’s assets were held in government bonds, 18.4 percent in stocks and other equities, and 5.1 percent in real estate. He explained that investments in government bonds help finance public programmes, while investments in companies such as MTN and Airtel support business expansion and job creation.
Total realised income—money actually received, mainly from bond interest, rental income and dividends—increased by 24 percent, from UGX 3.13 trillion to UGX 3.88 trillion. The fund also recorded unrealised gains of UGX 2.62 trillion from increases in the value of its investments.
NSSF’s cost of administration, measured as total expenses as a share of its asset base, stood at 0.84 percent. This was below the global average of about 2 percent and lower than the 2.5–3.5 percent typical of the fund’s regional peers. Its cost-to-income ratio stood at 7.7 percent, compared with roughly 50 percent for commercial banks. The fund also paid UGX 3.1 billion in taxes.
Ayota also highlighted the growth of Smart Life, NSSF’s voluntary savings product launched in December 2024. The product has grown to UGX 180 billion, with more than 135,000 accounts opened. He shared examples of members saving small amounts regularly, including some who started with as little as UGX 5,000, and later accumulated substantial balances. Ayota said the experience demonstrated that Ugandans are willing to save when provided with convenient and trustworthy savings options.
Overall, the fund grew by 26 percent during the year, from UGX 26 trillion to UGX 32.8 trillion, while Uganda’s economy grew by about 6 percent. Ayota said the growth reflected the benefits of diversifying investments across bonds, equities and real estate rather than concentrating assets in a single class.
He also noted that the number of members who have reached the age of 55 and are eligible to withdraw their savings, but have chosen to leave their money with NSSF, has increased steadily. The number rose from about 51,000 in 2022/23 to roughly 88,000 by the end of the last financial year.
The interest rate to be credited to members’ accounts for the year has not yet been announced. The decision rests with the Minister, who is expected to announce the rate next Thursday.