NSSF members are 13.5% richer

NSSF members are 13.5% richer

Kampala, Uganda – Savers with the National Social Security Fund (NSSF) are celebrating good news after the government announced a 13.5% interest rate on their savings for the financial year 2024/25, the highest payout in recent history.

The declaration was made by the Minister of Finance, Planning and Economic Development, Matia Kasaija, during the Fund’s annual members’ meeting. He said at least Shs 2.79 trillion will be distributed to savers, in line with Section 36 (1) of the NSSF Act, which requires that interest is credited to members’ accounts as of July 1 each year.

“This year’s declaration marks the largest amount ever credited to members’ accounts in the Fund’s history,” Mr. Kasaija said, noting that the growth demonstrates NSSF’s resilience and prudent investment strategies.

Strong growth performance

According to NSSF management, the Fund’s Assets Under Management (AUM) grew from Shs 22.3 trillion in 2023/24 to Shs 26 trillion in 2024/25, a 17.5% rise. Members’ contributions also climbed by 10.4%, from Shs 1.93 trillion to Shs 2.13 trillion. Revenue increased by 11%, while benefit payouts to members grew from Shs 1.12 trillion to Shs 1.32 trillion.

This performance was achieved despite a challenging economic environment marked by inflationary pressures and slow recovery in some sectors.

Comparisons with past years

The new 13.5% interest rate is significantly higher than the 11.5% declared in FY 2023/24. In earlier years, savers earned 10% (2022/23), 9.65% (2021/22), and 12.5% (2020/21). The latest rate therefore restores confidence among members who had expressed concerns over declining returns in recent years.

Members react

Some NSSF members welcomed the announcement, saying it was a relief at a time when many households are grappling with rising living costs. “This is good news. It shows our money is being put to work,” said one saver in Kampala.

Analysts also hailed the Fund’s performance, arguing that consistent growth strengthens the case for social security as a reliable safety net.

With the payout, millions of Ugandan workers under NSSF are set to see their retirement savings grow faster, reinforcing public confidence in the institution.