Only Shs3.4bn Refunded Out of Shs966bn PDM Funds, Minister Reveals

What the report says

Uganda’s government says repayment under the Parish Development Model (PDM) remains far below expectations, with beneficiaries having returned only Shs3.4 billion out of Shs966 billion that has fallen due. The figure was disclosed by State Minister for Finance in charge of Microfinance Shartsi Musherure during a Thursday review meeting on the programme, which was chaired by Prime Minister Robinah Nabbanja.

According to the report, the low refund rate has prompted concern over the long-term sustainability of the PDM revolving fund. The scheme is designed so that money repaid by one beneficiary group can be re-lent to other households in the same parish, making repayment central to its operation. Government officials used the meeting to examine disbursement, beneficiary selection, fund use and repayment trends after about two years of implementation.

Nabbanja urged local leaders to step up sensitisation, saying beneficiaries must understand that the PDM is intended for wealth creation rather than a handout. Ministers and technical officials also discussed measures such as strengthening parish committees, improving record keeping and taking legal action against deliberate defaulters.

The meeting also highlighted districts including Kakumiro, Mubende and Maracha as areas where implementation has shown progress. Separately, the PDM Secretariat said it plans to publish parish-by-parish repayment data next quarter to improve transparency and encourage accountability. The broader issue matters because repayment performance will affect whether the programme can continue supporting new households as intended.