- Uganda’s NSSF assets hit record UGX 26 trillion, driven by strong member contributions
- Analysts say growth raises pressure on the Fund to deliver higher interest rates
KAMPALA, UGANDA – Uganda’s National Social Security Fund (NSSF) has posted record results, with assets under management climbing 17.5% to UGX 26 trillion ($7.42 billion) by the end of June 2025.
Managing Director Patrick Ayota said earnings rose 10.8% to UGX 3.52 trillion ($1 billion), up from UGX 3.2 trillion ($913.5 million) a year earlier.
“This performance reflects financial stability and resilience even in a challenging economic environment,” he told reporters in Kampala.
“Growth across real estate, equities, and interest income helped us cross the 26 trillion shilling mark, positioning us strongly for our long-term strategy.”
Strong performance, rising expectations
Member contributions rose by more than 10% to UGX 2.13 trillion ($608 million). Interest income grew to UGX 2.88 trillion ($822 million) from UGX 2.34 trillion, while dividend earnings increased to UGX 238 billion ($68 million). Real estate also contributed UGX 16.6 billion ($4.75 million), up from UGX 13.2 billion ($3.78 million).
The Fund’s equity investments delivered robust returns, including UGX 61.8 billion ($17.6 million) from MTN Uganda, UGX 36 billion ($10.3 million) from Airtel, UGX 21.5 billion ($6.1 million) from Equity Bank, and UGX 18.6 billion ($5.3 million) from CRDB Bank Tanzania. Additional gains came from holdings in KCB Group, Safaricom, Tanzania Breweries, National Microfinance Bank, and Stanbic Uganda.
Civil society leaders say the results are in line with Uganda’s economic expansion.
“The economy is growing at 6% and above, so institutions like NSSF should be able to expand and acquire more assets,” said Julius Mukunda, Executive Director of the Civil Society Budget Advocacy Group (CSBAG).
“As a saver in NSSF I expect a good interest rate on my savings.”
But Mukunda also cautioned: “This growth puts more pressure on NSSF to provide better returns. If they don’t, I can shift my money to other investment trusts.”
Strategic shift ahead
NSSF is preparing to launch its Vision 2035 strategy, aiming to double assets to UGX 50 trillion ($14.3 billion), expand coverage to half of Uganda’s labour force, and achieve 95% customer satisfaction. The fund has already diversified with products like Smartlife Flexi, which drew UGX 27 billion ($7.7 million) in voluntary savings since launch.
The Fund paid UGX 1.32 trillion ($376.8 million) in benefits, up from UGX 1.12 trillion ($319.6 million) last year, though claimants fell slightly to 43,501. Compliance slipped to 52% from 57% after a 2022 law expanded mandatory contributions.
Still, risks remain. NSSF disclosed a UGX 117 billion ($33.4 million) write-down of its 25% stake in UMEME after the government refused to renew the electricity distributor’s concession. Chief Financial Officer Steven Mwanje said the Fund reduced the book value of the holding but offset losses with UGX 95 billion ($27.1 million) in dividends.
Ayota said the Fund’s resilience was evident despite regional stock market volatility and currency swings. “Economic growth improved slightly from 6.1% to 6.3%, and inflation remained under control. The shilling strengthened, yet we delivered a solid performance,” he said.
Mukunda advised that given government’s appetite for domestic borrowing, “NSSF should be attracted to start buying more government bonds since the economy is also growing.”
For savers, the Fund’s record performance offers reassurance – but it also raises expectations that NSSF must deliver stronger returns while managing new risks.
