Uganda’s National Social Security Fund (NSSF) has announced a record 22.53 percent interest rate on members’ savings for the financial year ended June 30, 2026, marking the highest return declared in the Fund’s four-decade history.
The rate was announced on September 24, 2026, during NSSF’s 14th Annual Members’ Meeting in Kampala. It represents a significant increase from the 13.5 percent interest rate declared for the previous financial year and will see about Shs5.44 trillion credited to members’ accounts.
The announcement comes after a strong financial year for the Fund. NSSF reported that its total income surged by 85 percent to Shs6.51 trillion, while assets under management increased by about Shs6.86 trillion to Shs32.87 trillion. Member contributions also grew by 13 percent to Shs2.42 trillion, reflecting continued growth in the Fund’s savings base.
For millions of Ugandans saving through NSSF, the interest declaration is more than an annual headline. It directly determines how much their accumulated savings grow and highlights the importance of long-term investment performance in building retirement security.
NSSF Managing Director Patrick Ayota attributed the strong performance to the Fund’s investment strategy and growth in member savings. During the year, the Fund deployed Shs4.54 trillion into investments, with Shs4.32 trillion invested in Uganda. Its portfolio remains heavily weighted toward fixed-income investments, particularly government bonds, alongside equities and real estate.
The Fund also reported that it paid Shs1.549 trillion in benefits to eligible members during the year. At the same time, the average turnaround time for benefit payments fell to about 4.5 days, compared with nearly two weeks in 2021/22, signalling improvements in the processing of member claims.
The record interest rate also comes against a broader push to increase Uganda’s culture of long-term saving. NSSF says it attracted 311,000 new members during the financial year, while 55,000 dormant members were reactivated. The Fund is also expanding voluntary savings products and financial-literacy initiatives beyond its traditional base of salaried workers.
However, the latest declaration also raises a wider conversation about what members expect from their retirement savings beyond annual interest. Some savers have called for products that can help them address long-term needs such as housing, while regulators continue to emphasise that NSSF’s primary purpose is to provide financial security in old age rather than function as a short-term lending institution.
The Fund’s performance also matters beyond individual accounts. NSSF says it paid approximately Shs301.5 billion in taxes during the financial year and continues to invest billions of shillings in Uganda’s financial markets and strategic assets, making it an important source of long-term domestic capital.
Looking ahead, NSSF is targeting a much larger savings base. Its long-term ambitions include expanding membership to 15 million people and growing its assets substantially over the coming years. The challenge will be to sustain investment returns while protecting members’ savings against market risks and ensuring that more Ugandans participate in formal and voluntary retirement saving.
For now, the 22.53 percent declaration gives NSSF members a record annual return and places renewed attention on the role of pension savings in Uganda’s financial future. More importantly, it puts the spotlight on the bigger question: how can the country turn stronger saving habits and long-term investment into greater financial security for millions of workers?
