This goal was not only met but also exceeded, with the Fund’s assets reaching Shs 22.13 trillion by the end of June 2024.
This represents a staggering growth of over 2 trillion in just six months, underscoring the Fund’s robust financial health.
“This financial year alone, we have grown by 19.2%,” Ayota revealed, adding that contributions continue to rise, with a year-on-year increase of 12.2%.
Best in the region
One of the key indicators of NSSF Uganda’s efficiency is its cost-to-income ratio, which Ayota described as the amount spent for each shilling raised in revenue.
“Ours was 8.66% the year before, and it went up slightly to 8.77%. By comparison, in the banking industry, the average cost-income ratio is around 60%,” he explained.
This means that for every 100 shillings in revenue, NSSF Uganda spends only 8.77 shillings, while banks typically spend 60. This
In addition, NSSF Uganda’s administrative cost ratio, a key efficiency indicator for retirement benefits funds around the world, is notably low.
This year, the Fund’s administrative costs were just 1% of total assets, far outperforming regional counterparts.
NSSF Kenya’s cost administration ratio stands at 2.2%, while NSSF Tanzania’s is around 3%.
The global average for funds of a similar size is 2%.
“This is how well we are sweating our assets to generate value,” Ayota remarked.
Looking ahead, NSSF Uganda has set ambitious targets to further improve its efficiency.
“Our target next year is to bring that number below 1%,” Ayota stated, signalling the Fund’s commitment to enhancing its cost management and maintaining its leadership position in the region.
