Savers' contribution grows by Shs1 trillion in eight years- NSSF

The National Social Security Fund (NSSF) said Monday that it aims at growing its assets to   Shs50 trillion by 2035 after members’ contribution and its income increased by Shs1.032 trillion over the last eight years.
The fund attributed growth in contribution to increased membership.

NSSF said it had hit Shs20 trillion in Assets Under Management (AUM) 18 months ahead of schedule outlined in the Fund’s 10-year Strategic Plan.
The Fund said in a Monday statement that total contribution in 2015 was Shs688 billion before it launched the 2015-2025 Strategic Plan, with a key strategic objective to grow its assets under management to Shs20 trillion by 2025. 

The other strategic objectives were improvement in business processes to pay benefits to qualifying members in one day, and achieving 95 percent staff and customer satisfaction.
“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,” the NSSF managing director, Mr Patrick Ayota said.

 “The unwavering commitment to deliver our value proposition of safety, convenience, and empowerment to our members, has propelled the Fund to achieve this milestone,” he said. 
Despite the economic disruptions by the Covid-19 outbreak and other external and shocks, Mr Ayota said the Fund was determined to achieve the goal it had set.

“When we set this audacious goal in 2015, to many people, it seemed beyond reach. In addition, 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 mid-term benefit payout, and disruptive and intrusive investigations. Despite all this, we didn’t just endure, we thrived,” Mr Ayota added.

According to him, 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.
Despite the volatile economic environment over the last 10 years, income has also consistently increased. In 2015, the Fund’s income stood at Shs583.2 billion, but rose to Shs1.47 trillion by 2020. Last Financial Year, the Fund recorded Shs2.2 trillion in realised income.

Mr Ayota said the Fund will achieve its strategic objectives as scheduled given that some benefit types such as age and mid-term are already being paid in less than seven days, while the average payment time is currently 11 days. Customer and staff satisfaction stood at 86 percent as at the end of last Financial Year.

NSSF Assets Under Management from 2015 to 2024Financial Year Assets (Trillion of Shillings)