By Sulain Kauki
Government has recovered only about Shs6 billion from the Shs4.3 trillion disbursed to beneficiaries under the Parish Development Model (PDM), the State Minister for Finance in charge of Microfinance, Shartsi Musherure Kutesa, has said.
The revelation comes as beneficiaries who received funds during the initial rollout of the programme begin reaching the end of the two-year grace period and are expected to start repaying the revolving loans.
Musherure disclosed the recovery figures on the first day of the two-day Local Government Budget Consultations for the 2027/2028 financial year in Kabale Municipality.
The consultations, organised by the Ministry of Finance, Planning and Economic Development, are being held under the theme “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”
Musherure said government faces a significant challenge in recovering the funds and called for continued sensitisation of beneficiaries about the nature of PDM financing.
She said some beneficiaries still perceive the funds as grants rather than loans that must be repaid into the revolving fund to allow other households to benefit.
“There is a huge gap in recovering PDM funds. The beneficiaries must have markets, must be told that this was not ‘akasimo’ but rather there was a grace period,” Musherure said.
Under the PDM, funds are channelled through parish-level structures and local Savings and Credit Cooperative Organisations (SACCOs) to support households to participate in the money economy and undertake income-generating activities.
Rukiga District LCV Chairperson Simon Mutebi Rwamagyenda urged local leaders and technical staff to intensify sensitisation through community barazas and radio programmes to address misconceptions about the programme.
He said beneficiaries need to understand that PDM money is a revolving fund and that repayment is necessary for other households to access the funds.
“There is need for us to educate the locals that the money which was given to them must be recovered. After repaying the loan, other people will benefit,” Rwamagyenda said.
Robert Sendegeya, a member of the PDM Secretariat, said government has invested Shs4.3 trillion across 10,589 parishes under the programme.
He said beneficiaries were given a two-year grace period, meaning households that received funds during the initial 2022/2023 rollout are now expected to begin repaying their loans through their local SACCOs.
The low recovery rate has raised questions about the sustainability of the revolving-fund model and the effectiveness of efforts to ensure beneficiaries repay the money after receiving it.