The Uganda National Social Security Fund (NSSF) has seen its revenue increase by 15 per cent to Sh2.53 trillion in the financial year ending June 30, 2024, as funding from its sources increased.
Speaking at the NSSF annual meeting in Kampala, Ayota attributed the growth to increased income, revenue and returns on assets.
“In terms of financing all our invested assets, income increased last year compared to the previous year,” Ayota said. Unlisted funds increased from Sh145.1 billion to Sh175 billion, while real estate income increased from Sh11.9 billion to Sh13.3 billion, he added.
In addition to revenue growth, the fund had a better year in other key metrics such as growth in assets under management, partnership collections, benefits paid and cost management.
Ayota said the grant reflected the overall development in the aviation industry in Uganda and East Africa.
Ayota added that the analysis shows that even without competition, the region is in better shape than it was in FY2022/2023. Uganda’s economy is recovering, with GDP growing by 6%, inflation under control, regional markets recovering and interest rates rising slightly.
With Ugandan Finance Minister Matia Kasaija expected to announce payers’ repayments this week, this year’s performance points to the possibility of double-digit interest rates for savers.
Savers have consistently received 10% or more annual interest on their contributions for over a decade, except for FY2021/22 when partners received 9.6% interest.
In addition to revenue growth, NSSF exceeded key operational targets including asset growth, partnerships and cost control. Funds under management increased by 19.2% year-on-year to Sh22.13 trillion, exceeding the budget’s Sh20 trillion target in 2025 ahead of schedule.
Ownership contributions increased by 12.2% year-on-year from Sh1.72 trillion to Sh1.93 trillion, while management fees as a share of total assets decreased from 1.02% to 1.00%.
The fund paid out a profit of Sh1.12 trillion, down from Sh1.199 trillion the previous year. The decrease was attributable to a decrease in the number of applicants from 48,115 to 44,250. The average subsidy decreased from Sh272.2 billion to Sh176.6 billion.
Looking ahead, the National Social Security Fund announced its “Vision 2035” strategy, which aims to increase assets to 50 trillion shillings by 2035, expand social security that employs 50% of Uganda’s workforce, and achieve 95% customer satisfaction.
