The National Social Security Fund (NSSF) has announced that its total earnings for the Financial Year ending June 30, 2025, rose to Shs 3.52 trillion, marking an 11% increase from Shs 3.2 trillion the previous year.
Member contributions also hit a new record, rising by over 10% from Shs 1.93 trillion in FY 2023/24 to Shs 2.13 trillion in FY 2024/25.
NSSF Managing Director Patrick Michael Ayota said that the growth in earnings is due to a better performance across the Fund’s asset classes.
“For the second year running, we saw a significant increase in revenue in our real estate income, interest income, as well as dividend income,” Ayota said.
“Compared to the previous financial year 2023/24, interest income increased from Shs 2.34 trillion to Shs 2.88 trillion, and dividend income from our listed equity investments increased from Shs 175.0 billion to Shs 238.14 billion. Our real estate income increased from Shs 13.24 billion to Shs 16.64 billion. Other income increased from Shs 382 billion to Shs 651 billion.”
Information from the Fund dividend earnings includes Shs 61.8 billion from MTN Uganda, Shs 36 billion from Airtel, Shs 21.5 billion from Equity bank, and Shs 18.6 billion from CRDB Tanzania.
Others are Shs 16 billion from KCB, Shs 15 billion from Safaricom, Shs 15 billion from Tanzania Breweries, Shs 13.7billion from NMB Bank, and Shs 13 billion from Stanbic Bank, among others.
The growth in revenue and contributions led to an overall increase of 17.5% in the Fund’s Assets Under Management (AUM) which increased from Shs 22.13 trillion in the Financial Year 2023/24 to Shs 26.0 trillion in the Financial Year 2024/25.
Ayota also said that the Fund’s impressive performance shows financial stability, which sets up the Fund well as it begins implementation of its next 10-year strategic plan. The Plan, dubbed “Vision 2035”, centres around growing the Fund to Shs 50 trillion, increasing NSSF coverage to 50% of the working population, and customer satisfaction of 95%.
“Generally speaking, the investment environment in the last Financial Year was quite challenging. Despite a slight improvement in economic growth from 6.1% to 6.3%, and while inflation remained under control, we saw some volatility across the East African stock market. The Uganda shilling strengthened against the US dollar, and the regional currencies. Against this background, our performance this year has been impressive and bodes well for our future,” Ayota said.
Ayota also told journalists that the Fund recorded improved performance in other business areas.
In addition to mandatory contributions, its Smartlife Flexi voluntary product continues to perform well, recording Shs 27 billion in contributions since its introduction.
The benefits paid out to members also increased from Shs 1.12 trillion in the Financial Year 2023/24 to Shs 1.32 trillion in the Financial Year 2024/25. This was despite a decline in the number of claimants from 44,250 to 43,501.
However, its rate of compliance lagged, declining from 57% in the Financial Year 2023/24 to 52% in the Financial Year 2024/25.
The decline follows a change in the law in 2022, where all employers, regardless of the number of workers, are obliged to remit contributions, which has increased the number of employers that have cash flow challenges. “The Fund has embarked on sensitization and employer engagement initiatives to improve compliance,” Ayota explained.
