NSSF Declares Record 22.53% Interest Rate, Crediting Sh5.44 Trillion to Savers
Corporate editorUpdated 1 day Ago2 Mins read36
Finance Minister Henry Musasizi has announced a record 22.53 per cent interest rate for National Social Security Fund (NSSF) members for the financial year ended June 2026, resulting in Sh5.44 trillion being credited to savers’ accounts.
The rate was announced on Thursday, September 24, during NSSF’s 14th Annual Members’ Meeting at the Kampala Serena Hotel. It is the highest interest rate in the Fund’s 40-year history, surpassing the previous record of 15 per cent declared in 2017/18.
The Sh5.44 trillion payout is almost double the Sh2.8 trillion credited to members in the previous financial year, when the interest rate stood at 13 per cent.
Musasizi said the return was above Uganda’s 10-year average inflation rate of 4.1 per cent, as the Government continues to emphasise increased domestic savings and investment.
NSSF records strong financial growth
The record interest rate came after a strong financial year for the Fund. NSSF’s total income increased by 85 per cent, from about Sh3.51 trillion in the previous financial year to Sh6.51 trillion in 2025/26.
Assets under management also increased by about 2 per cent, reaching approximately Sh32.8 trillion by June 2026, up from Sh26 trillion a year earlier.
Member contributions increased by 13 per cent to Sh2.42 trillion, while the Fund paid about Sh1.55 trillion in benefits to members during the year.
NSSF Managing Director Patrick Ayota said the Fund attracted 311,000 new members during the year, while 55,000 dormant members were reactivated.
Under its Vision 2035 strategy, NSSF wants to expand its coverage to 15 million savers, equivalent to half of Uganda’s working population, while growing the Fund to Sh88 trillion.
Investments drive performance
Ayota said NSSF continued to invest members’ savings across different asset classes, including government securities, equities and real estate.
About 76.5 per cent of the Fund’s assets were invested in fixed-income securities at the end of June 2026, while equities accounted for about 18.4 per cent and real estate about 5.1 per cent.
The Fund’s income was boosted by strong investment performance. Of the Sh6.51 trillion in total income, approximately Sh3.88 trillion was realised income, including interest from bonds and dividends. At the same time, Sh2.62 trillion represented unrealised gains from assets that had increased in value but had not yet been sold.
NSSF also recorded Sh301.5 billion in income tax, adding to its contribution to government revenue.
Musasizi calls for more domestic savings.
Musasizi said Uganda’s economic ambitions will require the country to mobilise more domestic savings and channel them into productive investments.
He noted that Uganda’s savings rate currently stands at about 24 per cent of GDP, but needs to increase to 40 per cent by 2040 to support the country’s long-term investment requirements.
The Minister commended NSSF for its investments in infrastructure and other strategic areas, while stressing that members’ savings should be protected and invested prudently to generate competitive, risk-adjusted returns.
He also encouraged workers outside the formal sector, including farmers, market vendors, students and boda boda riders, to take advantage of NSSF’s voluntary savings products.
Tumukunde urges NSSF to support economic transformation.
Minister of Gender, Labour and Social Development Lt. Gen. (Rtd.) Henry Tumukunde challenged NSSF to expand its role in Uganda’s economic development.
Tumukunde said the Fund should not only safeguard workers’ retirement savings but also become a stronger catalyst for economic transformation, while maintaining the principles of prudent investment and financial competitiveness.
NSSF’s 14th Annual Members’ Meeting served as the Fund’s accountability platform for reviewing its 2025/26 financial performance, investments, governance and future priorities.
The record interest declaration gives NSSF members a significantly higher return for the year, while the Fund’s management faces the longer-term task of sustaining investment performance, expanding membership and protecting the value of workers’ savings.
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