NSSF assets grow to Shs20 trillion ahead of schedule   

Mr Patrick Ayota

What you need to know:

  • The growth comes ahead of the June 2024 projection, which the Fund had projected last year, and ahead of the 2025 strategic plan 

National Social Security Fund (NSSF) has said assets under management now stand at Shs20 trillion, one and half years ahead of schedule. 

The growth also comes ahead of the June 2024 projection, which the Fund had projected last year. 

Speaking ahead of the Fund’s annual members’ meeting in September last year, Mr. Patrick Ayota, the NSSF managing director, had indicated that they expect the size of the Fund to grow to Shs20 trillion by June this year, which would be an early achievement from the 2025 target.  The growth means that NSSF’s assets under management have in the six months to December 2023 grown by at least Shs1.5 trillion from Shs18.56 trillion in the period ended June 2023 to Shs20 trillion, supported by an increase in member contribution investment income.

During the period to June 2023, NSSF said member contributions had increased Shs1.72 trillion, while income, despite a volatile economic environment, had increased to Shs2.2 trillion. 

In a statement released early this week, Mr Ayota indicated that in 2015, the Fund had launched the 2015/25 strategic plan, with a key strategic objective to grow assets under management to Shs20 trillion by 2025. 

However, he said, due to continued  commitment to deliver “our value proposition of safety, convenience, and empowerment to members,” the Fund had achieved a milestone, which, to many people, had seemed beyond reach. 

“We did not know that the journey would be filled with disruptions; a global pandemic that kept us locked for almost two years, an unprecedented midterm benefit payout, and disruptive and intrusive investigations. Despite all this, we didn’t just endure, we thrived,” he said, noting that growth had been driven growth in both contributions and income.  In the eight years to 2023, NSSF noted, member contributions had increased from Shs688b in 2015 to Shs1.72 trillion, while has risen from just Shs583.2b to Shs2.2 trillion. 

However, NSSF has previously indicated that while the Fund’s performance remains strong and profitable, the current size remains far from what is desirable, which calls for concerted efforts to make it more sustainable in the long term. 

Vision 2035 

NSSF, under Vision 2035, plans to grow its assets under management to Shs50 trillion, with a coverage of at least 50 percent of the working population.

“We are now on the brink of a new era - a new day where we aim to redefine what’s possible once again. Our next goal is to grow assets under management to Shs50 trillion by 2035,” Mr Ayota said.