Each National Social Security Fund (NSSF) member will receive an average of UGX1 million credited on their pension account, thanks to the 13.5 percent interest rate that the pension Fund has declared for 2024/2025. That means that the Fund’s UGX 2.79 trillion income for the year will be benefit its 2.3 million savers, well above the UGX 2 trillion paid out in the previous year. It is the highest return to members since 2017 when the Fund paid out 15 percent. Managing Director Patrick Ayota said the Fund’s total revenue rose from UGX 3.2 trillion in 2023/24 to UGX 3.52 trillion in 2024/25, an increase of 11%, driven by gains across fixed income, equities, and real estate, coupled with improved employer compliance. The Fund’s assets under management expanded sharply, rising by 17.5% from UGX 22.13 trillion to UGX 26 trillion in the year, which Finance Minister Matia Kasaija, commended saying the Fund is now one of the most robust retirement schemes in the region. He pointed out that the asset base of UGX 26 trillion compares favorably with member obligations of UGX 25.6 trillion, leaving the Fund well-positioned to meet its commitments. The 13.5% payout has positioned NSSF among the best-performing pension funds in East Africa, given that the retirement funds in Kenya and Tanzania recorded average returns of below 10 percent. Notably, NSSF delivered a double-digit payout that comfortably outpaces inflation, which remains at around 5%, which for savers, ensures positive real gains on their retirement savings. At the meeting, the Minister of Gender, Labour and Social Development, Betty Amongi, commended the Fund for extending its reach beyond the formal employment sector, noting that Smartlife Flexi, a voluntary savings product introduced in November last year, has attracted UGX27 billion in contributions from more than 40,000 new savers in just 10 months. She challenged the Fund to intensify its outreach to the informal workforce, which constitutes the majority of Uganda’s labor market and remains underserved by social security programs. Board Chairperson Dr. David Ogong outlined NSSF’s long-term vision under the “Vision 2035†strategy to grow the Fund’s assets to UGX 50 trillion, driven by technology and innovation. Despite the upbeat announcement, analysts have cautioned that macroeconomic risks cannot be overlooked. Inflationary pressures, currency volatility, and global market uncertainties could weigh on future returns. However, officials emphasized that continued compliance by employers, expansion of voluntary contributions, and prudent investment management would be critical to sustaining the momentum. For members, the 13.5 percent declaration and UGX 2.79 trillion payout are more than numbers; they are proof that disciplined savings, when managed well, can translate into tangible and rewarding returns. The future of the Fund is bright, and with continued collaboration between government, employers, and members, we are confident that NSSF will remain the most trusted retirement savings partner in Uganda, Ayota said.
