NSSF to pay 13.5% interest to savers

KAMPALA - The National Social Security Fund (NSSF) has announced 13.5% interest for the financial year 2024/25. This marks an increase from the 11.5% declared in the previous financial year and reflects the fund’s strong financial performance and sustained growth.

The declaration was made by the Minister of Finance, Planning and Economic Development, Matia Kasaija, during the 13th Annual Members Meeting held at the Kampala Serena Hotel.

Addressing stakeholders, Kasaija commended the Fund for maintaining a clean balance sheet and growing its assets.

“Last year, the NSSF paid members an interest rate of 11.5%, which translated into over sh2 trn distributed among savers. This year, that has been raised by 2%, which is a great achievement. It is not easy to sustain such growth, but the Fund has proven its ability to safeguard members’ savings and deliver value,” Kasaija said.

According to NSSF’s financial report, the Fund closed the 2024/25 financial year with assets worth sh26 trn. This represents a 17.5% increase from sh22.1 trillion recorded the previous year. Member contributions grew by 10.4% to sh2.13 trillion, while total revenue rose to sh3.52 trillion compared to sh3.2 trillion in the previous year.

NSSF Managing Director Patrick Ayota unveiled the Fund’s new ten-year strategy, which will run from 2025 to 2035. The strategy follows the successful completion of the previous 2015–2025 roadmap.

The gains were largely attributed to improved investment returns. Interest income increased to sh2.88 trn, while dividend earnings jumped to sh238b.

“The Fund has demonstrated efficiency and sound financial management. These results underscore the importance of prudent investments and accountability,” Kasaija added, applauding the Fund’s leadership for their transparency.

At the same meeting, NSSF Managing Director Patrick Ayota unveiled the Fund’s new ten-year strategy, which will run from 2025 to 2035. The strategy follows the successful completion of the previous 2015–2025 roadmap.

“We have launched a new strategic plan to guide the Fund’s operations for the next decade. Our vision is to make savings a way of life and to change lives through financial security,” Ayota said.

Under the new strategy, NSSF aims to achieve a savings portfolio of sh50 trn, grow membership to at least 15 million people, and maintain a 95% customer satisfaction rate.

Ayota emphasised that building a strong savings culture is key to Uganda’s long-term development.

The National Social Security Fund (NSSF) Mbarara team as they received the 13.5% interest announcement.

“As a country, we need to embrace a culture of saving if we are to build a sustainable economy. Many developed nations grew on the back of strong savings and investments. We want to encourage Ugandans to see savings not just as a legal requirement but as a lifestyle,” he explained.

Ayota also reiterated NSSF’s commitment to supporting Uganda’s economic transformation by investing in critical sectors.

Agriculture, he noted, remains the backbone of the economy and will continue to benefit from NSSF initiatives. In addition, the Fund has set a target to support at least 1,000 startups by the year 2035 as part of its broader innovation and enterprise development strategy.

“Supporting startups and enterprises is key to creating jobs and ensuring economic resilience. We believe that by investing in agriculture, innovation, and entrepreneurship, we are not only securing members’ savings but also driving the country’s development,” Ayota said.

Dr. David Ogong, the Chairman of the NSSF Board of Directors, reported that the Fund has not only grown members’ savings but also contributed significantly to employment creation.

“Through our investments and programmes, we have directly and indirectly created over two million jobs. This is in line with our mandate to create value for our members and contribute to national development,” Dr. Ogong noted.

He further urged government to involve the Fund in more national development projects, particularly those with long-term economic benefits.

“We are glad that we are now engaging with the informal sector, which represents a large part of Uganda’s workforce. We encourage more Ugandans, especially those outside formal employment, to consider voluntary savings with the Fund. This will not only secure their future but also strengthen the economy,” Dr. Ogong added.

The Minister of Gender, Labour and Social Development, Betty Amongi, also praised NSSF for its achievements, particularly in growing membership. She highlighted the importance of extending coverage to the informal sector, which constitutes the majority of Uganda’s workforce.

“We are proud of the Fund’s efforts to bring more people on board. Our aim is to continue expanding membership, especially among informal sector workers who have often been left out of formal social security systems. By doing so, we can ensure that more Ugandans have a safety net in retirement,” Amongi said.

She called on the public to take advantage of voluntary saving opportunities offered by the Fund, stressing that social security should be a priority for every citizen.