Revenue
Business and financial performance
The Fund achieved commendable performance across most key performance indicators. Total assets, realised income, cost of administration, and contributions all surpassed their budgeted expectations. The asset size grew by 26.4% to UGX 32.87 trillion. The Fund also recognised significant revaluation gains on the regional investments.
Interest income, which accounts for over 90% of realised income, increased by 21.5%, from UGX 2.88Tn in FY2024/25 to UGX 3.5Tn in FY2025/26. This growth was driven by strong inflows from mandatory and Smartlife Flexi contributions, as well as the reinvestment of coupon payments, bond proceeds and matured investments.
Real estate income declined by 3.9%, from UGX 16.64Bn in FY2024/25 to UGX 16.00Bn in FY2025/26, primarily due to lower occupancy levels in certain commercial properties and slower sales of residential units at the Lubowa development.
Dividend income increased by 55.0%, from UGX 238Bn in FY2024/25 to UGX 369Bn in FY2025/26. This growth was primarily driven by improved performance of investee companies, special dividends received from Kenya Commercial Bank (KCB) and NMB, and additional investments in Safaricom, Kenya Commercial Bank (KCB), and Equity Group Holdings. The telecoms and banking sectors performed exceedingly well within the financial year.
Unrealised revenue increased from UGX 375.4Bn in FY2024/25 to UGX 2.6Tn in FY2025/26, a 598% increase. The move was driven almost entirely by fair value gains on the investment portfolio (UGX 2.5Tn). As a result, total revenue grew by 85.1% from UGX 3.51Tn to UGX 6.51Tn driven by the growth in unrealised income, fixed income and dividend income.
