The National Social Security Fund (NSSF) is projecting robust performance at the close of the Financial Year 2024/25, with income expected to reach UGX 3 trillion and assets under management forecasted to grow to UGX 25 trillion—marking a continued upward trajectory for Uganda’s largest retirement benefits scheme.
This projection represents significant year-on-year growth, building on the UGX 2.53 trillion in income and UGX 22.13 trillion in assets that the Fund recorded at the close of the Financial Year ended June 30, 2024.
In light of the strong financial performance, NSSF is expected to declare a competitive interest rate to members later this year.
NSSF Managing Director Patrick Ayota attributed the strong performance to prudent investment strategies, regional portfolio diversification, and higher returns from all asset classes including fixed income, equities, and real estate.
Mr Ayota was speaking at a Media RoundTable in Kampala where he received NSSF’s dividend cheque of UGX 50.3 billion from Airtel Uganda.
“We have continued to diversify—not just within Uganda, but also regionally in markets such as Kenya and Tanzania,” Ayota said. “This diversification strategy has allowed us to weather economic shifts while delivering consistent returns for our members.”
Strong Growth Across All Investment Classes
For the financial year ended June 2024, the Fund saw income growth of 16%, up from UGX 2.2 trillion to UGX 2.53 trillion. This was driven largely by higher interest earnings, which rose from UGX 2 trillion to UGX 2.34 trillion, dividend income that jumped from UGX 145.1 billion to UGX 175 billion, and real estate earnings that increased from UGX 11.9 billion to UGX 13.3 billion.
Looking ahead, Ayota said the Fund expects to surpass UGX 3 trillion in income for the 2024/25 Financial Year, supported by ongoing growth in interest and dividend earnings, as well as maturing real estate developments.
“Real estate is a long-term play,” Ayota explained. “It takes time to develop, but once mature, it provides strong cash flows and hedges against inflation. We are now starting to see the returns on earlier investments.”
Asset Base Expansion and Member Contributions
NSSF’s assets under management grew by an impressive 19.2% in the last financial year, from UGX 18.57 trillion in 2022/23 to UGX 22.13 trillion in 2023/24. With the Fund now projecting to reach UGX 25 trillion by the close of the current financial year, it will have surpassed its Vision 2025 target of UGX 20 trillion more than a year in advance.
Irene Mwoyogwona: Beyond the Numbers – How Pride Bank's Award-Winning CFO Combines Profitability and Social Impact“We still hold our position as the largest Fund by value in East Africa,” Ayota emphasized.
Member contributions also showed robust growth, rising by 12.2% from UGX 1.72 trillion in FY2022/23 to UGX 1.93 trillion in FY2023/24. For the current year, NSSF is projecting member contributions to increase to UGX 2 trillion.
The increase in contributions signals both rising formal employment and improved compliance, driven by stronger enforcement of statutory obligations and expansion of voluntary contributions.
Benefit Payments and Cost Efficiency
Interestingly, the Fund saw a decline in benefit payouts over the past year. Total benefits paid out dropped from UGX 1.199 trillion in FY2022/23 to UGX 1.120 trillion in FY2023/24. This was attributed to a reduction in the number of claimants—from 48,115 to 44,250—especially in mid-term benefit claims, which declined from UGX 272.2 billion to UGX 176.6 billion.
At the same time, the Fund improved cost efficiency. Administrative costs dropped to 1.00% of total assets from 1.02% in the prior year, reinforcing NSSF’s commitment to maximizing value for its members.
Looking Ahead: Vision 2035
The Fund has now embarked on an ambitious roadmap—Vision 2035—which aims to grow assets to UGX 50 trillion, extend social security coverage to 50% of Uganda’s working population, and achieve 95% customer satisfaction levels.
“Our goal is to not only grow the Fund but also ensure that more Ugandans are included in the social security net,” Ayota said. “That means investing in technology, expanding voluntary savings schemes, and deepening our regional footprint.”
NSSF’s projected UGX 3 trillion income and UGX 25 trillion in assets underline its growing financial might and strategic discipline.
With regional investments paying off and new growth strategies in motion, the Fund is not only safeguarding the retirement benefits of millions of Ugandans but also positioning itself as a key economic player in East Africa.
