NSSF annual contributions hit Shs 1.72 trillion 

The amount of money that Ugandans contribute to the National Social Security Fund (NSSF) has risen from Shs 1.27 trillion in 2020 to Shs 1.72 trillion in 2023.

This contribution comes from up to 2.2 million members. Information obtained from NSSF indicates that this growth in savings has been the major contributing factor to the current increase in the assets under the fund’s management. As of February 29, assets under NSSF management had risen from Shs 18.5 trillion last year to Shs 20 trillion.

Patrick Ayota, NSSF managing director, says the fund has hit the Shs 20 trillion, one and a half years ahead of schedule, according to their 10-year strategic plan set in 2015.

“When we set this audacious goal in 2015, to many people, it seemed beyond reach,” Ayota said.

“In addition, we did not know that the journey would be filled with disruptions: a global pandemic that kept us locked for almost 2 years, an unprecedented mid-term benefit payout, and disruptive and intrusive investigations. Despite all this, we didn’t just endure, we thrived. The unwavering commitment to deliver our value proposition of safety, convenience, and empowerment to our members has propelled the Fund to achieve this milestone.”

According to Ayota, alongside achieving the Shs 20 trillion target as the key strategic objective, the other strategic objectives were improvement in business processes to pay benefits to qualifying members in 1 day and achieving 95 per cent staff and customer satisfaction.

He added that the key drivers that enabled the fund to achieve the milestone ahead of schedule are consistent growth in both contributions from members and income from the fund’s investments. NSSF’s income grew from Shs 1.47 trillion in 2020 to a record high Shs 2.2 trillion last financial year, and Ayota said the combination of the two is why the fund is now at Shs 20 trillion.

He added that despite the volatile economic environment over the last 10 years, the fund’s income has also consistently increased. In 2015, the fund’s income stood at Shs 583.2 billion but rose to Shs 1.47 trillion by 2020, and last financial year, it was recorded at Shs 2.2 trillion.

NSSF statistics indicate that as of June 20, 2023, the fund’s investment portfolio allocation stood at 78 per cent in fixed income, 13 per cent in equities and 9 per cent in real estate.

Ayota expressed confidence in the fund’s ability to achieve its strategic objectives as scheduled. Some benefit types such as age and mid-term, are already being paid in less than 7 days, while the average payment time is currently 11 days. Customer and staff satisfaction stood at 86 per cent as at the end of last financial year.

“We thank God, we thank our staff, various boards of directors over the years, our supervising ministries, and all who have made this possible,” Ayota said. “We are now on the brink of a new era – a new day where we aim to redefine what is possible once again. Our next goal is to grow assets under management (AUM) to Shs 50 trillion by 2035,” Ayota said.

At a wider scope, information from the Uganda Retirements Benefits Regulatory Authority (URBRA) shows that the number of people saving for retirement has increased from 3,015,807 in 2022 to 3,142,311 in 2022.

The URBRA 2023 report shows that up to 79 per cent of the funds are invested in government securities, and that sector contributes up to 60 per cent of gross domestic savings, accounting for 11.5 per cent of the gross domestic product. Additionally, the schemes paid up to Shs 235 billion to the government in taxes in 2023, up from Shs 227 billion in 2022.