FAMReports News Desk | September 2025
The National Social Security Fund (NSSF) has posted record-breaking earnings for the financial year ending June 30, 2025, with total revenue reaching UGX 3.52 trillion, up 11% from the UGX 3.2 trillion posted in 2023/24.
The milestone, announced at the Fund’s Annual Media Roundtable at the Kampala Serena Hotel on Wednesday, underscores the strength of Uganda’s pension giant in the face of volatile investment markets.
NSSF Managing Director Patrick Michael Ayota attributed the stellar performance to robust growth across multiple asset classes, efficient cost management, and member-driven contributions.
“For the second year running, we have seen significant growth in real estate income, interest income, as well as dividend income,” Ayota said. “This gives us confidence as we move into our Vision 2035 strategy to grow the Fund to UGX 50 trillion, increase coverage to 50% of the working population, and achieve 95% customer satisfaction.”
Revenue Growth Driven by Strong Assets
The Fund’s revenue structure showed resilience across all streams:
Interest income rose from UGX 2.34 trillion to UGX 2.88 trillion.
Dividend income increased from UGX 175 billion to UGX 238.14 billion.
Real estate income improved from UGX 13.24 billion to UGX 16.64 billion.
Other income grew from UGX 382 billion to UGX 651 billion.
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Dividend earnings were driven largely by investments in some of East Africa’s most profitable firms. Top contributors included MTN Uganda (UGX 61.8 billion), Airtel (UGX 36 billion), Equity Bank (UGX 21.5 billion), CRDB Tanzania (UGX 18.6 billion), KCB (UGX 16 billion), Safaricom and Tanzania Breweries (UGX 15 billion each), NMB Bank (UGX 13.7 billion), and Stanbic Bank (UGX 13 billion).
Member Contributions and Asset Expansion
The Fund reported significant growth in member contributions, which rose by 10.4% to UGX 2.13 trillion compared to UGX 1.93 trillion the previous year.
Assets Under Management (AUM) surged by 17.5%, climbing from UGX 22.13 trillion in 2023/24 to UGX 26 trillion in 2024/25.
“This is not just growth in numbers,” Ayota explained. “It is a demonstration of the trust Ugandan workers continue to place in NSSF as a reliable custodian of their savings.”
Efficiency and Cost Management
While revenues soared, NSSF also tightened its belt. The cost-to-income ratio improved from 9.7% to 7.9%, while the administration cost fell from 1.02% of total assets to 0.88%.
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“This level of efficiency ensures that more value goes back to our members,” Ayota told journalists.
The Fund also registered gains in non-financial performance indicators: customer satisfaction rose from 87% to 88%, while staff engagement grew from 89% to 91%.
Expanding Products and Benefits
The Fund has also been diversifying its products to attract voluntary savings. The Smartlife Flexi savings product, launched in November 2024, attracted UGX 27 billion in contributions within 10 months, signaling strong uptake among Ugandans seeking flexible savings options.
Meanwhile, member benefits paid out increased from UGX 1.12 trillion in 2023/24 to UGX 1.32 trillion in 2024/25. Interestingly, the number of claimants slightly declined from 44,250 to 43,501, suggesting higher savings retention even as payouts grew.
Compliance Challenges
Despite the positive results, the Fund acknowledged persistent challenges. Compliance rates dropped from 57% to 52% following the 2022 amendment that required all employers, regardless of size, to remit contributions.
“The legal change expanded coverage but also introduced new compliance challenges, especially for smaller businesses facing cash flow constraints,” Ayota explained.
To address this, NSSF has intensified employer sensitisation and engagement campaigns to boost compliance in the coming years.
Resilience Amid Market Volatility
Ayota emphasized that the performance came despite a tough investment climate marked by currency fluctuations and volatility in East African stock markets.
“With 80.5% of our assets in fixed income, 13.3% in equities, and 6.2% in real estate, we are well-positioned for long-term sustainability,” he said. “Our strategy balances profitability, growth, and member satisfaction.”
The Road Ahead: Vision 2035
The strong performance now lays a solid foundation for NSSF Vision 2035, the Fund’s new 10-year plan. Its goals include:
Growing AUM to UGX 50 trillion.
Expanding coverage to 50% of Uganda’s working population.
Achieving 95% customer satisfaction.
Ayota stressed that the Fund will continue to innovate, strengthen compliance, and diversify investments to ensure sustainability.
“We are not just managing today’s assets; we are safeguarding tomorrow’s livelihoods,” he concluded.
A Record Year for Uganda’s Pension Sector
The 2024/25 financial year will go down as a landmark in NSSF’s history. From record-breaking earnings and expanded member contributions to improved efficiency and stronger benefits payouts, the Fund has demonstrated both financial strength and operational agility.
Challenges remain, especially in employer compliance, but the trajectory is clear: Uganda’s largest pension fund is positioning itself as a powerhouse of financial security and a driver of national development.
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