The National Social Security Fund (NSSF) has reported a record-breaking increase in earnings for the financial year ending June 30, 2024.
The Fund’s earnings rose by 15%, reaching Shs 2.53 trillion, up from Shs 2.2 trillion the previous year.
Patrick Ayota, NSSF Managing Director, attributed this impressive growth to increased interest income, higher dividend earnings, and a boost in real estate income.
“Income from all three asset classes we invest in saw a notable rise this financial year. Interest income grew from Shs 2 trillion to Shs 2.34 trillion, dividend income from listed and unlisted equities increased from Shs 145.1 billion to Shs 175 billion, and real estate income rose from Shs 11.9 billion to Shs 13.3 billion,” Ayota stated.
Ayota highlighted that despite challenges, the year was favourable across East Africa. Uganda’s economy grew by 6%, inflation was controlled, regional stock markets recovered, and interest rates experienced a slight increase.
The NSSF also achieved a significant milestone in asset growth, surpassing its 2025 target of Shs 20.25 trillion.
As of June 2024, assets under management stood at Shs 22.13 trillion, reflecting a 19.2% increase from the previous year. The Fund continues to hold its position as the largest in East Africa by value.
Deputy Managing Director Paul Kasaato credited the asset growth to a 13% increase in contributions and a 21% rise in dividends.
Notable investments in MTN and Airtel contributed Shs 40.5 billion and Shs 22 billion, respectively. Additionally, the recovery of equity markets played a role in this growth.
Member contributions also increased by 12.2%, rising from Shs 1.72 trillion in 2022/23 to Shs 1.93 trillion in 2023/24. The cost of administration decreased slightly from 1.02% to 1.00% of total assets.
However, the amount paid in benefits declined from Shs 1.199 trillion in 2022/23 to Shs 1.120 trillion in 2023/24. This reduction was attributed to a decrease in the number of benefit claimants, from 48,115 to 44,250. Mid-term benefit payments also dropped from Shs 272.2 billion to Shs 176.6 billion.
Ayota explained that many beneficiaries are choosing not to withdraw their savings, trusting the Fund to ensure the safety and growth of their investments.
“This trust is a responsibility we do not take for granted,” he said.
Looking ahead, the NSSF has launched Vision 2035, which aims to grow the Fund to Shs 50 trillion, extend social security coverage to 50% of Uganda’s working population, and achieve a 95% service satisfaction level by 2035.
