The National Social Security Fund (NSSF) has reported a remarkable performance for the financial year 2024/25, marking the close of its 10-year strategic plan, Vision 2025, the NSSF Managing Director Patrick Ayota said during the Fund’s Annual Media Roundtable held in Kampala on Sept.10.
The Fund’s overall performance reflects a stronger macroeconomic environment and an effective investment strategy that has driven significant growth across its key indicators.
During the year, the economy grew at 6.3%, up from 6.1% the previous year, with inflation remaining stable at 3.8% as of June 2025. This favorable economic backdrop, alongside a strengthened Uganda Shilling against the US Dollar and other regional currencies, provided a conducive environment for the Fund’s investments.
Regional stock markets also recorded positive growth, with the Uganda Securities Exchange local index rising by 40%, Nairobi’s All Share Index by 25%, Tanzania’s by 17%, and Rwanda’s by 3%.
As a result, the Fund’s Assets Under Management (AUM) grew by 17.5%, increasing from Shs 22.13 trillion in 2023/24 to Shs 26 trillion by the close of the financial year 2024/25. This growth was supported by a robust rise in member contributions and revenue generation. Member contributions increased by 10.4%, moving from Shs 1.93 trillion in 2023/24 to Shs 2.13 trillion in 2024/25. Total revenue earned also grew by 11%, climbing from Shs 3.2 trillion to Shs 3.52 trillion over the same period.
The revenue surge was driven by significant growth across multiple streams. Interest income rose from Shs 2.34 trillion to Shs 2.88 trillion, while dividend income increased from Shs 175 billion to Shs 238.14 billion. Real estate income experienced steady growth, moving from Shs 13.24 billion to Shs 16.64 billion. Additionally, other income streams nearly doubled, growing from Shs 382 billion to Shs 651 billion.
In line with its long-term strategy, the Fund maintained a balanced asset allocation: fixed income investments comprised 80.5%, equities 13.3%, and real estate 6.2% of its total portfolio. This conservative approach ensured stability while capturing growth opportunities in key sectors.
Cost efficiency was another highlight of the year. The cost-to-income ratio improved from 9.7% in 2023/24 to 7.9% in 2024/25, reflecting better operational efficiency. Similarly, the cost of administration declined from 1.02% of total assets to 0.88%, underscoring the Fund’s commitment to prudent cost management.
On the benefits side, the Fund paid out Shs 1.32 trillion to members, up 18% from Shs 1.12 trillion the previous year. This increase came despite a slight reduction in the number of beneficiaries, which decreased from 44,250 to 43,501. The benefits covered included age, withdrawal, survivors, emigration grants, exempted, and midterm benefits, ensuring members received timely financial support.
A major innovation introduced during the year was the NSSF Smartlife Flexi, a voluntary savings plan launched in November 2024. In just 10 months, the product registered over Shs 27 billion in contributions, reflecting strong uptake and demonstrating the Fund’s ability to innovate in line with the evolving financial needs of its members.
Customer and staff engagement also showed progress. Customer satisfaction rose slightly from 87% to 88%, while staff engagement improved from 89% to 91%, indicating a positive organizational culture and enhanced service delivery.
However, the Fund faced challenges in compliance. The compliance rate dropped from 57% to 52%, highlighting ongoing issues with employer registration and contributions. Despite this, NSSF expanded its employer base, with many new entrants beginning to make contributions, suggesting room for future improvement.
Looking ahead, the Fund is set to announce a new interest rate at its 13th Annual Members Meeting on September 22, 2025. The Minister of Finance, Planning, and Economic Development, Hon. Matia Kasaija, is expected to declare a rate above the 10-year average inflation rate plus 2%, in line with the Fund’s commitment to delivering competitive returns to its members.
As the Fund transitions from Vision 2025 to Vision 2035, it has set ambitious new goals. These include increasing coverage to at least 50% of Uganda’s working population, growing total assets to Shs 50 trillion by 2035, and raising customer and member engagement levels to 95%.
This year’s performance demonstrates that the NSSF is on a strong growth trajectory, underpinned by financial stability, operational efficiency, and innovative products.
The 17.5% growth in AUM, coupled with double-digit increases in member contributions and revenue, positions the Fund as a critical driver of Uganda’s social security and economic development agenda. With Vision 2035 now underway, the NSSF has laid a solid foundation to expand its reach, strengthen compliance, and deliver even greater value to its members and the nation at large.
