Minister Urges NSSF to Shift from Custodian to Economic Catalyst

Minister Henry Tumukunde urges National Social Security Fund to transition from custodian to economic driver, criticizing governance and calling for merit-based leadership.

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Nyakundi Report

Newsroom 3 min read

Primary source The Independent Uganda

Kampala, Uganda — Gender, Labour and Social Development Minister Lt.Gen Henry Tumukunde has demanded the National Social Security Fund (NSSF) abandon its parastatal mindset and become a catalyst for Uganda’s economic growth, warning that competence must dictate leadership roles. Speaking at the 14th NSSF Annual Members’ Meeting on September 25, 2026, Tumukunde questioned the fund’s effectiveness despite its record Shs32.8 trillion in assets and a 22.53% interest rate for the 2025/26 financial year, stating, “Are you helping the economy grow?” Tumukunde argued that NSSF’s role should extend beyond safeguarding savings, emphasizing that the fund’s resources must actively stimulate economic development. “This money should be turning around the economy,” he said, citing examples like Zambia and the U.S., where pension funds drive transformation. He criticized the fund’s current name, suggesting a rebrand to “National Social Custodians Fund” to reflect its passive role, and urged a shift toward “maximal deployment” of resources rather than “protective defense.” The minister directly challenged NSSF’s governance structure, questioning whether board members were selected based on merit or retained due to habit. “Why do you maintain people in your machine just because they started with you?” he asked, advocating for “horizontal exits” and competitive recruitment. He also contested the assumption that trade union affiliation alone qualifies individuals to oversee the multi-trillion-shilling institution, stating, “This is workers’ money. You must qualify to be a board member.” Tumukunde raised concerns about the divided oversight of NSSF between the gender and finance ministries, asserting, “I can’t pass a budget and you spend it without my consent.” He called for stricter accountability, emphasizing his role in protecting workers’ interests. The minister further criticized the fund’s risk-averse investment strategies, asking, “If you were evaluated by a properly running company, how would they rate you?” He also warned against complacency, dismissing the fund’s growth as an “achievement in itself” and stressing the need for “stories of success.” Tumukunde threatened consequences for employers failing to remit workers’ contributions, stating non-compliance could lead to license revocation. “If they don’t pay, it must affect their licensing,” he said, directing names to the Ministry of Trade for de-licensing. NSSF Managing Director Patrick Ayota defended the fund’s performance, attributing its growth to strong regional stock market returns and currency appreciation. However, Tumukunde’s remarks underscored a broader push for institutional reform, framing NSSF’s evolution as critical to Uganda’s economic future. The minister concluded with a direct challenge: “NSSF must see itself not simply as a custodian of savings but a catalyst of Uganda’s economic growth.” The Independent Uganda, September 25, 2026

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