By Marvin Ezra Ssenkayi
The National Social Security Fund (NSSF) declared an interest rate of 13.5% for the financial year 2024/25, the highest in five years and a jump from last year’s 11.5%.
The announcement, made by Finance Minister Matia Kasaija during the Fund’s 13th Annual Members’ Meeting in Kampala on Monday, means savers will share UGX 2.79 trillion, the largest payout in the Fund’s 40-year history.
Kasaija praised the NSSF’s performance despite economic headwinds, noting that Assets under Management grew by 17.5% to UGX 26 trillion, while member contributions rose 10.4% to UGX 2.13 trillion. Benefits paid to members also increased from UGX 1.12 trillion to UGX 1.32 trillion.
“For yet another year, the Auditor General has given the Fund a clean bill of health. This proves the books are accurate and fair,” Kasaija said, challenging the Fund to sustain growth so he can declare an even higher rate next year.
NSSF Managing Director Patrick Ayota attributed the results to “strategic investments, innovation, and operational efficiency,” highlighting that the Fund now accounts for 11.5% of Uganda’s GDP. He cited investments of UGX 13.7 trillion in government securities, UGX 1.6 trillion in real estate, and UGX 1.45 trillion in local companies.
Ayota also pointed to the success of the Smartlife Flexi Plan, a voluntary savings product launched in late 2024. In just ten months, it has attracted UGX 27 billion from over 33,000 savers, many from the informal sector.
NSSF Board Chairman Dr. David Ogong said the Fund remains committed to its long-term strategy, Vision 2035, which aims to grow assets to UGX 50 trillion, expand worker coverage to 50%, and achieve 95% customer satisfaction.
Gender and Labour Minister Betty Amongi welcomed the Fund’s expansion into the informal sector, noting that over 40,000 people have enrolled in voluntary savings within 10 months.
The NSSF has consistently delivered interest rates at least 2% above inflation for over a decade, ensuring the growth and preservation of members’ savings.