Authorities in Kabale Municipality are struggling to recover Shs4.32 billion disbursed to 4,332 beneficiaries under the Parish Development Model (PDM), with only Shs2.44 million repaid so far.
The poor recovery rate has raised concern among municipal officials, who warn that continued failure by beneficiaries to repay the loans could affect thousands of other residents waiting to benefit from the government programme.
Kabale Municipality Commercial Officer and PDM focal person Willis Atumurikiire said the municipality has about Shs600 million ready for another round of PDM disbursements, expected to benefit about 600 new beneficiaries.
He, however, said the municipality may struggle to sustain the revolving fund if existing beneficiaries do not honour their repayment obligations.
Atumurikiire attributed the poor recovery partly to a misunderstanding of the programme, saying some beneficiaries initially believed the money was a grant rather than a loan.
He said the municipality has intensified sensitization through radio talk shows, churches, mosques and other community platforms to remind beneficiaries that the funds must be repaid.
Atumurikiire urged beneficiaries to repay their loans on time, saying timely recovery would allow the money to revolve and enable more households to access PDM financing.
He said beneficiaries who successfully repay their loans could qualify for additional financing of up to Shs2 million through their Parish PDM SACCOs.
He warned that failure to repay could deny other residents an opportunity to benefit from the programme, despite the municipality having funds available for another round of disbursements.
CUE IN ATUMURIKIIRE…ON THE MATTER…RR/ENG//
The PDM is a government programme launched by President Museveni in February 2022 to help households move from subsistence farming to commercial production through affordable financing and other services at parish level.
The programme operates through Parish PDM SACCOs, which provide low-interest loans to beneficiaries to establish or expand income-generating enterprises.
