The National Social Security Fund (NSSF) recorded a major improvement in financial performance in the year ended June 2026, with total income rising by 85 percent to Shs6.51 trillion as assets under management grew to Shs32.8 trillion.
The performance was driven largely by stronger investment returns, increased member contributions and gains across the Fund’s investment portfolio, strengthening its capacity to grow members’ savings and pay benefits.
NSSF Managing Director Patrick Ayota said the Fund’s results reflected improvements in both its financial performance and operations as management continued to focus on protecting and growing members’ savings.
“The Fund recorded its best performance for the Financial Year ended June 2026, driven by growth in interest income, higher dividend earnings and strong gains across regional equity markets,” Ayota said.
The Shs6.51 trillion income represents an increase from Shs3.52 trillion recorded in the 2024/25 financial year. Interest income increased from Shs2.88 trillion to Shs3.49 trillion, while dividend income from listed equity investments rose from Shs238.14 billion to Shs369 billion.
Ayota said the Fund’s investment strategy remained focused on balancing returns with the need to protect members’ savings over the long term.
“Our asset allocation remained within the long-term strategic ranges, with 76.5 per cent in fixed income, 18.4 per cent in equities and 5.1 per cent in real estate,” he said.
The largest share of NSSF’s investments remains in fixed income assets, particularly government securities, although its allocation to fixed income declined from 80.5 per cent in the previous financial year.
The stronger investment performance, together with increased contributions, pushed the Fund’s assets under management up by 26 per cent from Shs26 trillion in June 2025 to Shs32.8 trillion in June 2026.
The growth further strengthens NSSF’s position as a major institutional investor and source of long term domestic capital. NSSF has previously said its growing asset base can support investment in sectors that contribute to Uganda’s economic transformation while safeguarding members’ savings.
Member contributions also continued to rise, increasing by 13 per cent from Shs2.13 trillion in 2024/25 to Shs2.42 trillion in 2025/26.
Ayota attributed the increase to continued growth in savings and confidence among members.
“Member contributions increased by 13 per cent, from Shs2.13 trillion in FY 2024/25 to Shs2.42 trillion in FY 2025/26, reflecting our members’ continued trust in the Fund,” he said.
At the same time, NSSF paid out more money in benefits as the number of members qualifying for payments increased. Benefits paid rose by 17 per cent from Shs1.32 trillion to Shs1.549 trillion, with more than 46,000 members receiving benefits during the financial year.
The increase in payouts comes as more members reach the age at which they qualify for retirement benefits, placing greater emphasis on NSSF’s ability to maintain strong investment returns while meeting its obligations to savers.
Ayota said the Fund had also made progress in improving the speed at which members access their benefits.
“Benefits payment turnaround time reduced from nearly two weeks in 2022 to just 4.5 days, meaning members can access their benefits more quickly when they need them most,” he said.
The improvement has been supported by investment in digital systems and streamlined processes, with reports indicating that about 99 per cent of NSSF transactions are now processed digitally.
Ayota said operational efficiency improved by 20 per cent during the financial year, while customer satisfaction also increased from 88 per cent to 89 per cent.
“Customer satisfaction improved from 88 per cent to 89 per cent in FY 2025/26, reflecting our continued commitment to listening to members and responding to their evolving needs,” he said.
The Fund also continued to tighten its cost management. Its cost to income ratio improved from 7.9 per cent to 7.7 per cent, while the cost of administration declined from 0.88 per cent to 0.84 per cent of total assets.
Ayota said the improvement meant more value was being generated from every shilling spent by the Fund.
“For every shilling we spent, we created over Shs29 in value for the member. We are not just preserving, but most importantly, we are creating value for the member,” he said.
NSSF also contributed Shs301.5 billion in taxes during the financial year, adding to its contribution to government revenue.
The Fund is simultaneously expanding voluntary saving through Smartlife Flexi, which has attracted more than Shs180 billion in contributions within its first 20 months.
The product allows Ugandans to save voluntarily towards goals including investment, financial independence, education, emergencies and housing, widening access to long term savings beyond workers covered by the mandatory scheme.
NSSF’s latest performance comes as the Fund prepares for its 14th Annual Members’ Meeting, which is scheduled for September 24, 2026. The annual meeting provides an opportunity for members and other stakeholders to review the Fund’s financial performance, investments and operations, as well as receive the annual interest rate declaration.
The interest rate will be closely watched by members because it determines the return credited to their savings for the financial year.
At the previous Annual Members’ Meeting, Finance Minister Matia Kasaija declared an interest rate of 13.5 per cent for the 2024/25 financial year, translating into Shs2.79 trillion credited to members’ accounts.
Ayota said the latest financial results provide a foundation for the Fund to continue expanding its contribution to Uganda’s economy while maintaining its primary responsibility of protecting members’ savings.
“This performance provides a strong platform for future growth, enhances our ability to withstand economic shocks and supports the disciplined execution of Vision 2035. Most importantly, it strengthens our capacity to sustainably grow members’ savings and create lasting value for their future,” he added.
