The National Social Security Fund (NSSF) has reported significant earnings, with dividends amounting to Shillings 31.5 billion for the year ending December 31, 2022. This marks the highest earnings for the fund since its investment in MTN Uganda following the telecom’s Initial Public Offer (IPO) in 2021. Last year, the first dividend payment amounted to Shillings 9.32 billion.
In 2021, the NSSF invested Shillings 360 billion to acquire 1.98 billion shares of MTN, making it the second-largest shareholder with an 8.84 percent stake in the company. The dividends are a result of the accumulated returns on the 1.98 billion shares, with each share receiving an interest payment of Shillings 5.5.
Patrick Ayota, the acting managing director of NSSF, noted that the investment in MTN aligns with the fund’s diversification strategy, constituting 14.6 percent of its equity investment portfolio.
“The investment in M T N fits well with the fund’s diversification strategy, a key component of the corporate strategy to grow the fund to Shillings 20 trillion by 2025,” he said. Ayota stated that this investment is part of the fund’s plan to deploy capital in sectors integral to the economy, such as real estate, telecommunications, and emerging sectors like fintech.
Regarding the impact on the interests of NSSF savers, Ayota acknowledged the significance of the windfall but refrained from providing specific details. “The law doesn’t allow me to announce the interest rate, if I did, I would really go beyond my boundary, but I can only give you what we promised, which is to pay beyond the year’s average inflation rate, and that promise we will keep” he explained.
