The National Social Security Fund (NSSF) has announced a 22.53% interest rate for members’ savings for the financial year ended June 30, 2026.
The rate is the highest NSSF has ever declared and is a significant increase from the 13.5% paid to members for the previous financial year. The new rate means a total of about Shs5.44 trillion will be credited to members’ accounts.
But what does 22.53% actually mean for your own NSSF savings?
If you have Shs1 million
If you had Shs1 million standing on your NSSF account at the beginning of the financial year, a 22.53% interest rate translates into: Shs225,300 in interest.
Your balance would therefore rise to approximately Shs1.225 million.
For a balance of Shs10 million, the interest would be: Shs2.253 million.
The 22.53% is the annual interest rate declared for the financial year ended June 30, 2026. It should not be interpreted as 22.53% being added to your savings every month.
Under the NSSF Act, interest is calculated on the balance standing to a member’s credit on the first day of the financial year, provided no benefit has been paid from the account.
This is an important point because your monthly contributions should not simply be multiplied by 22.53% and added to the interest figure.
What happens to your monthly NSSF contributions?
For employees covered by the mandatory scheme, the standard contribution is 15% of the employee’s monthly salary — 5% contributed by the worker and 10% by the employer.
For example, if your salary is Shs1 million, your 5% contribution is Shs50,000, while your employer contributes Shs100,000.
That means Shs150,000 is credited towards your NSSF savings each month.
The money is then invested by NSSF, with the Fund earning returns from investments such as government securities, shares and property. NSSF reported assets under management of about Shs32.8 trillion at the end of June 2026.
Why has the rate increased so much?
NSSF reported a strong financial performance during the 2025/26 financial year.
Its total income increased sharply, while member contributions also rose to about Shs2.42 trillion. The Fund said its assets increased to approximately Shs32.8 trillion.
NSSF’s investment portfolio is largely made up of fixed-income investments, including government bonds, alongside equities and real estate. The Fund said about 76.5% of its assets were in fixed income at the end of June 2026.
The strong investment performance provided the basis for the higher interest rate declared for members.
What does this mean for NSSF savers?
In simple terms, the larger your qualifying NSSF balance, the larger the amount of interest credited at 22.53%.
For someone with Shs10 million, the rate translates to about Shs2.253 million in interest. For someone with Shs50 million, it translates to about Shs11.265 million.
The actual amount credited to an individual account, however, depends on the balance on which the statutory interest calculation is made and the member’s account activity.
The 22.53% declaration therefore does not mean every NSSF member will receive the same amount of money. It means members receive the declared annual rate applied according to the rules governing their NSSF accounts.
