National Social Security Fund announces record 22.53% interest payout

The National Social Security Fund (NSSF) of Uganda has announced a record 22.53 percent interest rate for the financial year, resulting in the distribution of UGX 5.44 trillion to member accounts. The Fund's total assets have reached UGX 32.8 trillion, with total revenue amounting to UGX 6.51 trillion.

This revenue was generated through two primary channels: UGX 3.9 trillion in realized cash flow from sovereign bonds across East Africa and dividends from corporations such as MTN and Airtel, and over UGX 2.6 trillion in unrealized valuation adjustments. These paper gains were driven by regional stock market rallies and the depreciation of the Ugandan shilling, which increased the local value of offshore holdings.

While the high returns provide a significant boost to savers, concerns have been raised regarding political influence over the Fund. Observers have noted that political rhetoric and the involvement of high-ranking state actors could pose risks to the NSSF's institutional independence and its standing in international debt markets. To maintain stability, experts suggest the Fund must rely on its realized cash engine and disciplined foreign exchange hedging to protect against market volatility and currency fluctuations.