NSSF Declares Record 22.53% Interest, Crediting UGX 5.44 Trillion to Members

Uganda’s National Social Security Fund (NSSF) has delivered its highest-ever return to savers, declaring a 22.53% interest rate for the financial year ended 30 June 2026. The announcement, made by Finance Minister Henry Musasizi at the Fund’s 14th Annual Members’ Meeting in Kampala, means approximately UGX 5.44 trillion will be credited to members’ accounts—nearly double the amount shared the previous year.

This rate is the strongest in NSSF’s roughly 40-year history, surpassing the previous record of 15% set in 2017/18 and jumping sharply from the 13.5% declared for the prior financial year. It also substantially outpaces inflation, which stood at 3.7% at the end of June 2026 and averages about 4.1% over the past decade.

Strong Growth Across Key Metrics

NSSF Managing Director Patrick Ayota reported robust overall performance. Total assets under management rose 26.4% to about UGX 32.87 trillion from UGX 26.01 trillion a year earlier. Member funds grew to roughly UGX 31.85 trillion.

Member contributions increased 13–14% to UGX 2.42 trillion. The Fund enrolled 311,000 new members during the year, lifting coverage to 24.1% by June 2026, while also reactivating around 55,000 dormant accounts. On the payout side, NSSF paid UGX 1.55 trillion in benefits to more than 50,000 members.

Total income surged about 85% to approximately UGX 6.51 trillion. Of this, realised income reached around UGX 3.88 trillion (driven largely by interest income of roughly UGX 3.5 trillion plus dividends), while fair-value and foreign-exchange gains contributed the remainder. The Fund’s portfolio remained heavily weighted toward fixed income (around 76.5%), with equities at about 18.4% and real estate at 5.1%. Strong regional equity performance, including holdings in stocks such as MTN Uganda, Airtel Uganda and several East African banks, helped power the gains.

Context and Reactions

Musasizi praised the Fund’s leadership and its position as the largest pension fund in East Africa. He linked the strong results to Uganda’s longer-term need to mobilise more domestic savings to support economic transformation goals.

Many members welcomed the substantial boost to their retirement balances. A saver with a qualifying balance of UGX 10 million, for example, would see roughly UGX 2.25 million added (subject to the Fund’s precise calculation rules under the NSSF Act, which apply the rate to the balance outstanding at the start of the financial year).

At the same time, the unusually high return has prompted discussion. Some observers noted that a meaningful portion of the income used to support the rate came from unrealised market gains rather than cash already banked. Others raised familiar questions about the Fund’s relationship with government borrowing needs amid fiscal pressures. Defenders pointed to NSSF’s long track record of operational independence, its consistent delivery of real (inflation-beating) returns over more than a decade, and the tangible benefits already paid out to retirees and other qualifying members.

What It Means for Savers

The 22.53% declaration continues a multi-year recovery in returns after a dip earlier in the decade. It reinforces NSSF’s role as a major source of long-term domestic capital while delivering a clear real increase in the value of members’ savings.

As with any single-year result driven partly by market conditions, future rates will depend on investment performance, contribution growth, and economic conditions. Members are encouraged to check their statements for the exact credit once it is applied and to consider the Fund’s voluntary savings options if they wish to build larger balances.

Overall, the record declaration marks a strong year for Uganda’s main private-sector pension scheme and provides a meaningful boost for the millions of workers relying on it for retirement security.