Uganda’s National Social Security Fund (NSSF) has reported its strongest financial performance to date, with total income rising 85 per cent to Shs6.51 trillion in the financial year ended June 2026. But beneath the headline figure is a distinction that will be closely watched when the Fund declares the interest rate credited to members next week.
Of the Shs6.51 trillion recorded as income, Shs3.88 trillion was realised income, representing cash actually earned from investments, while another Shs2.62 trillion came from other income, principally fair-value gains on investments. The distinction matters because fair-value gains reflect changes in the value of investments rather than cash that has necessarily been received by the Fund.
NSSF Managing Director Patrick Ayota said the Fund’s assets under management increased 26 per cent from Shs26 trillion in June 2025 to Shs32.8 trillion by June 2026. Member contributions also increased 13 per cent to Shs2.42 trillion during the year. The realised income component was supported primarily by government securities. Interest income increased 21 per cent from Shs2.88 trillion to Shs3.49 trillion, while dividends from listed investments rose 55 per cent from Shs238.14 billion to Shs369 billion.
Real estate contributed Shs16 billion, a four per cent decline from Shs16.6 billion in the previous financial year. That means the Fund generated substantial cash income from its core investments, particularly government bonds, even before accounting for the large increase in investment valuations.
However, the Shs2.62 trillion in other income was equivalent to roughly 40 per cent of the Fund’s total reported income. NSSF’s latest figures show that this component increased sharply from Shs381 billion in the previous financial year. The result was a much larger overall income figure than the cash income alone would suggest.
The Fund’s investment allocation helps explain the composition of the results. At the end of June, 76.5 per cent of its portfolio was invested in fixed-income assets, mainly government securities, while equities accounted for 18.4 per cent and real estate 5.1 per cent. Fixed income remained the largest source of the Fund’s realised investment income.
NSSF has attributed the broader performance to stronger returns across its investments, including regional equity markets, alongside the performance of the Ugandan and wider East African economies. The Fund also said movements in exchange rates contributed to the valuation gains on some investments denominated in foreign currencies.
For members, the immediate question is what portion of this year’s performance will ultimately be reflected in their savings. The answer will become clearer on September 24, when Finance Minister Henry Musasizi is scheduled to declare the interest rate for the 2025/26 financial year at NSSF’s 14th Annual Members’ Meeting. The previous year’s rate was 13.5 per cent, which resulted in Shs2.79 trillion being credited to members’ accounts.
The size of the Fund also gives the upcoming declaration considerable financial significance. NSSF reported that it paid Shs1.549 trillion in benefits to more than 46,000 members during the year, up 17 per cent from Shs1.32 trillion in 2024/25. At the same time, contributions rose to Shs2.42 trillion, leaving the Fund with continued growth in its underlying membership-related cash flows.
The strong performance also came alongside improvements in operational efficiency. NSSF said its cost-to-income ratio fell 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. The Fund also reported paying Shs301.5 billion in taxes during the financial year.
The numbers therefore present two sides of the Fund’s financial year. NSSF has significantly expanded its asset base, increased member contributions and generated substantially more realised investment income. At the same time, a large share of the reported increase in income came from changes in the value of investments.
That distinction does not make the valuation gains meaningless. They represent an increase in the measured value of assets held by the Fund. But their size also means that members and observers will have reason to look beyond the Shs6.51 trillion headline when assessing the sustainability of the latest performance.
With the interest-rate declaration only days away, the central question is no longer simply how much NSSF made. It is how the Fund’s investment performance, realised income, asset valuations and long-term strategy will translate into the return ultimately credited to millions of savers.
