Government has raised concern over the slow repayment of funds under the Parish Development Model (PDM), with beneficiaries having returned only Shs3.4 billion out of Shs966 billion that is currently due.
State Minister for Finance in charge of Microfinance Shartsi Musherure disclosed the figures on Thursday during a meeting chaired by Prime Minister Robinah Nabbanja to review the performance of the PDM programme across the country.
The meeting brought together ministers, officials from the PDM Secretariat and other stakeholders to assess how the programme is performing two years after its implementation.
Officials reviewed several areas, including the disbursement of funds, selection of beneficiaries, use of the money and repayment.
The Shs966 billion represents PDM funds whose grace periods have expired and are therefore due for repayment. However, only Shs3.4 billion has so far been recovered, raising concerns about the sustainability of the programme’s revolving fund.
Under PDM, money repaid by beneficiaries is supposed to be lent to other eligible households within the same parish to support income-generating activities.
Nabbanja warned that failure to repay the money could prevent other households from benefiting from the programme.
“PDM is about wealth creation, not handouts. If we don’t pay back, our neighbours will not benefit,” Nabbanja said.
She directed local leaders to step up community sensitisation on the importance of repayment and accountability, urging beneficiaries to understand that the money they receive is a revolving fund and not a government grant.
Kakumiro District was highlighted as one of the areas where PDM implementation has recorded notable progress, alongside Mubende and Maracha.
The meeting also agreed on measures to strengthen the programme, including improving the performance of parish PDM committees, enhancing record keeping and taking legal action against beneficiaries who deliberately refuse to repay the funds.
The PDM Secretariat said it will publish parish-by-parish repayment rates in the next quarter as part of efforts to improve transparency and encourage communities to hold beneficiaries accountable.
Government hopes that improved recovery will allow the revolving fund to reach more households and expand access to capital for income-generating activities across the country.
