NSSF savers receive 11.5% interest rate, signaling growth and trust

The NSSF Act now enables the Fund to extend its services beyond traditional employees, allowing informal sector workers and the self-employed to join voluntarily

Kampala, Uganda | JULIUS BUSINGE | The National Social Security Fund (NSSF) recently announced an 11.5% interest rate for its members, a clear indication that despite challenges, the Fund continues to sustain consistent growth through innovation, strengthened stakeholder trust, and a commitment to transparency.

At the core of the NSSF lies a story of trust, ambition, and a shared vision for Uganda’s future. This year’s Annual General Meeting (AGM), held on September 27 at the Kampala Serena Hotel and presided over by Davinia Esther Anyakun, Minister of State for Labour, Employment, and Industrial Relations, showcased how the Fund impacts the lives of millions of Ugandans—not just financially, but by reinforcing the dream of a secure future.

Anyakun, during her speech, emphasized the progress made by the NSSF, hailing its growth as a reflection of stability, trust, and progress. “The growth of the Fund demonstrates stability, progress, and trust,” she said, pointing to the Shs22.13 trillion in assets under management as evidence of that confidence.

For Ugandans like Mary, a self-employed mother of three who recently joined the NSSF, this growth signifies more than just numbers—it’s about securing her children’s future in an often unpredictable economy.

The expansion of social security coverage is among the Fund’s most significant recent achievements. The NSSF Act now enables the Fund to extend its services beyond traditional employees, allowing informal sector workers and the self-employed to join voluntarily.

For individuals like Mary, who runs a small roadside restaurant, this change is transformative. The NSSF is no longer just for formal employees; it now reaches those who once lived in financial uncertainty, bridging gaps that have existed for decades.

“I am glad the Fund has embarked on recruiting previously unserved segments, including the informal and agricultural sectors,” Anyakun emphasized, highlighting the ambitious goal of expanding coverage from 11% to 50% of the working population by 2035. This commitment to equity ensures that Uganda’s farmers, traders, and small-scale entrepreneurs can access the same financial security as their formally employed counterparts.

NSSF’s growth isn’t solely about financial stability; it is also about doing things right. As Anyakun celebrated the Fund’s adherence to Environmental, Social, and Governance (ESG) principles, it became evident that the NSSF is aligning its operations with sustainable development, reflecting the broader social consciousness of modern Uganda. “The Fund has fully embraced ESG principles, incorporating environmental stewardship, social responsibility, and economic resilience into its operations,” she stated.

For many Ugandans, ESG might seem abstract. However, when viewed through the lens of social responsibility—such as the Fund’s support for startups and agriculture—it becomes clear that it is about creating real opportunities for people. The goal is to ensure that as the Fund grows, it nurtures the very economy and environment its members depend on.

Record-breaking payout

A key moment at the AGM came when Finance Minister Matia Kasaija announced a record-breaking interest rate for NSSF members. With over Shs2 trillion allocated for the payout, this milestone represents not just a financial achievement but also a validation of decades of savings and hard work for members like James, a construction worker nearing retirement. “The Fund is preserving and growing the value of members’ savings,” Kasaija reaffirmed, emphasizing the government’s confidence in the Fund’s prudent investment strategy, which balances risk and return to ensure safety for savers like James.

With 79.2% of assets invested in fixed income, the NSSF has adopted a cautious yet effective strategy to ensure long-term growth. “The Fund is indeed growing,” Kasaija stated proudly, underscoring the importance of financial stability as a pillar of Uganda’s social security system.

David Ogong, the recently appointed Chairman of the NSSF Board, used the AGM to reflect on the future and reaffirm the Fund’s commitment to Vision 2035. This vision aims not only to expand the Fund to Shs50 trillion but also to improve efficiency and reach 50% of Uganda’s working population, offering them a path to financial security. “Your money is safe with the Fund,” Ogong assured members, highlighting NSSF’s sound financial management. For individuals like Mary, this assurance brings peace of mind, knowing that her contributions will support her in old age and secure a better future for her children.

As the NSSF continues to evolve, the human stories behind the numbers remain central. The Fund is not merely about trillions or percentages; it’s about people like Mary and James, who place their trust in a system committed to safeguarding their future. Through ambitious goals, responsible investments, and an inclusive vision, the NSSF is shaping Uganda’s social security landscape for generations to come.

With Vision 2035 firmly in sight and the record interest rates announced, the NSSF is not only protecting the savings of its members but also building a more inclusive, resilient Uganda—one where every worker has a stake in the nation’s future. Ogong and his team are dedicated to improving governance, transparency, and strategic investments to boost the Fund’s assets and ensure long-term sustainability.

Resilience amidst challenges

Despite past leadership crises, including the suspension of former Managing Director Richard Byarugaba and the conviction of David Chandi Jamwa, the NSSF has demonstrated remarkable resilience. The Temangalo land scandal, which involved inflated land purchases, further tested public trust. Nevertheless, the Fund’s investment strategies—especially its focus on fixed-income assets—have allowed it to maintain steady growth, with 79.2% of assets in fixed income as of 2024.

In 2022, Byarugaba was suspended amid accusations of mismanagement and governance failures. While credited with growing the Fund to unprecedented levels, he faced scrutiny during investigations into his leadership. His suspension, which followed his bid for contract renewal after reaching retirement age, sparked debate about its legitimacy. Ultimately, his contract was not renewed in early 2023.

Earlier, in 2010, Jamwa was convicted for financial mismanagement, notably selling government bonds below market value, resulting in a loss of Shs3.1 billion. His sentencing to 12 years in prison highlighted governance challenges within the NSSF, even as the Fund continued to grow after his removal. The Temangalo land scandal in 2008, involving a controversial land purchase, damaged the Fund’s public image and raised questions about governance practices.

Supporting retirees

The NSSF has been actively working to support its members after retirement through various initiatives. Recognizing that the average payout to members is often insufficient for a sustainable retirement, NSSF emphasizes financial literacy and smart investment strategies. Reports indicate that 45% of retirees continue to work post-retirement because their benefits, often below Shs10 million, do not cover their needs.

NSSF’s Managing Director, Patrick Ayota, highlighted that many retirees lack the financial knowledge to maximize their benefits. To address this, the Fund has promoted financial literacy programs to help retirees make informed decisions about their savings. Additionally, partnerships with financial institutions aim to improve beneficiaries’ access to business opportunities and further investment.

Moving forward, NSSF executives are focused on achieving the 2035 vision. Ayota advocates for encouraging members to avoid withdrawing their entire savings at once, promoting phased withdrawals instead. This approach ensures a stable income for members, enhancing long-term financial security during retirement. By fostering better financial management post-retirement, the NSSF aims to provide ongoing support rather than a one-time payout.