National Social Security Fund (NSSF) savers are celebrating a historic windfall after the Government announced an interest rate of 22.53% for the financial year 2025/26, the highest rate ever declared by the Fund.
The announcement, made by Finance Minister Henry Musasizi at the NSSF Annual Members Meeting at Serena Hotel in Kampala, immediately triggered excitement among millions of workers whose retirement savings are held by the Fund.
Musasizi declared that NSSF members would earn 22.53% interest on their savings for the financial year ended June 2026, setting a new record in the history of the Fund.
The announcement means that savers will see a substantial increase in the value of their accumulated contributions, depending on their individual balances.
For long-term savers, the announcement was particularly significant because the interest is calculated on accumulated savings, meaning members with larger balances stand to see bigger additions to their accounts.
“I am the happiest man living,” said Peter Kalanda, an NSSF member who said he has been saving with the Fund for about 30 years.
Kalanda said the announcement was a major reward for his long-term commitment to saving.
“My savings are going to grow with this great news,” said Goretti Nakandi, who said she started saving with NSSF in 2020 after securing employment.
Nakandi said the announcement had strengthened her confidence in saving for retirement.
The declaration comes at a time when NSSF is seeking to encourage more Ugandans to develop a culture of long-term saving and expand coverage beyond the formal employment sector.
Musasizi announces record interest
The Finance Minister made the announcement as he addressed members and stakeholders at the Fund’s Annual Members Meeting.
The 22.53% interest rate represents a significant increase in the amount being credited to members’ accounts and comes after a year in which the Fund recorded a sharp rise in annual revenue.
NSSF reported annual revenue of Sh6.51 trillion for the year ended June 2026, representing an 85% increase compared with the previous financial year.
The growth was attributed largely to income from government and corporate bonds, as well as gains from investments in regional equities.
However, income from real estate declined sharply, with property earnings reported at about Sh16 billion.
The performance provides important context to the record interest rate because NSSF invests members’ contributions across different asset classes to generate returns.
The Fund’s investment income is subsequently used, among other purposes, to provide interest to members’ savings.
The strong performance in bonds and equities therefore helped create room for the exceptional return announced for the financial year.
Ayota: More Ugandans must save
NSSF Managing Director Patrick Ayota said the Fund’s long-term strategy is not simply to persuade Ugandans to save but also to increase their ability to save.
“Our Vision 2035 strategy is built on two pillars: creating a willingness to save and creating the capacity to save. It’s not enough to tell people to save. We must also give them the ability to do so,” Ayota said.
According to Ayota, NSSF has registered 3.6 million people, of whom about 2.7 million currently have balances with the Fund.
He said the Fund now has approximately 20,000 agents, making it easier for members to access NSSF services.
The numbers point to the growing importance of the Fund in Uganda’s retirement savings landscape.
However, the relatively large difference between registered members and those with balances also illustrates the challenge of keeping members actively contributing to their accounts.
NSSF has been expanding its reach through digital services, agents and new products in an effort to bring more workers into the formal retirement savings system.
Tumukunde praises saving culture
Labour and Social Security Minister Lt Gen Henry Tumukunde also welcomed the announcement, stressing the importance of retirement planning and responsible saving.
The minister has previously emphasised the role of social security in protecting workers from financial vulnerability after retirement.
The record interest declaration provides an additional incentive for workers to maintain their contributions, particularly at a time when the cost of living continues to put pressure on household incomes.
For workers, however, the real value of the announcement will ultimately depend on the growth of their individual balances over time.
A history of interest rates
The latest announcement also provides a sharp contrast with interest rates declared during the tenure of former NSSF Managing Director Richard Byarugaba.
During Byarugaba’s years at the helm, NSSF consistently declared interest to members based on the Fund’s investment performance.
The rates included 11% for the financial year 2019/20, 12% in 2020/21, 12.3% in 2021/22, 15% in 2022/23 and 11.5% in 2023/24. For the financial year 2024/25, the Fund declared 13% interest to members.
Against that background, the latest 22.53% represents a dramatic jump. The increase is particularly notable because NSSF’s interest rate is one of the key indicators watched by members when assessing the performance of their retirement savings.
Over the years, NSSF has repeatedly explained that the interest paid to members depends on the Fund’s investment performance and the income generated from its portfolio.
The Fund invests in government securities, equities, real estate and other approved investments.
The changing rates have therefore reflected differences in market conditions, investment income and the overall performance of the Fund.
Savers celebrate
For ordinary members, however, the technical details of investment performance are secondary to the effect the announcement will have on their balances.
Kalanda, who has saved for three decades, said the declaration was a major moment for long-term contributors.
“I am the happiest man living,” he said.
Nakandi, who began saving in 2020, said the announcement had given her renewed confidence in continuing with her contributions.
“My savings are going to grow with this great news,” she said.
Other savers are expected to watch their statements closely as the interest is credited to their individual accounts.
For workers approaching retirement, the additional interest could provide a meaningful boost to their accumulated savings.
For younger workers, the significance could be even greater because compound growth over several decades can substantially increase the value of regular contributions.
NSSF’s next challenge
The record interest comes with a renewed challenge for NSSF — convincing more Ugandans to save consistently and expanding the number of active contributors.
Ayota’s figures show that although millions have registered with the Fund, only about 2.7 million currently have balances.
The Fund is therefore looking beyond existing members as it seeks to implement its Vision 2035 strategy.
The expansion of its agency network to about 20,000 agents is part of that effort.
As NSSF celebrates the record return, members will now expect the Fund to sustain strong investment performance while maintaining prudent management of their retirement savings.
For millions of savers, however, the immediate message is simple: their patience and contributions have been rewarded with the biggest interest declaration in the Fund’s history.
The 22.53% figure has therefore transformed the 2025/26 financial year into a landmark year for NSSF members — and a major talking point in Uganda’s retirement savings sector.
Author Profile
- Charles Gazza Kodili is a seasoned journalist with over 20 years of experience in the media industry. He holds a Bachelor of Arts degree in Mass Communication. He’s currently the Chief Editor at the Investigator.
Charles can also be reached via; Tel: +256 774 108978
Email: [email protected]
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