The Parish Development Model (PDM) Secretariat has attributed the low recovery of disbursed funds to politicians who allegedly misled beneficiaries into believing the money was a token of appreciation for their votes in the 2021 elections.
This was stated during the Budget Conference for the Kigezi Sub-region organised by the Ministry of Finance, Planning and Economic Development in Kabale District on Thursday.
Reports indicate that although the government has disbursed more than Shs4.31 trillion to capitalise the programme, only Shs2.75 trillion had reached beneficiaries in the form of soft loans. By mid-2026, only about Shs3.9 billion had been recovered nationally.
The PDM Secretariat research and policy officer, Robert Sendegeya, said the programme initially experienced what he described as a “stampede”, with some politicians using it as a campaign tool following the 2021 elections and during the 2026 elections.
Sendegeya urged politicians to return to the grassroots and sensitise beneficiaries about their obligation to repay the money, saying PDM is a revolving fund.
“Politicians, please help us. You are the ones who created this problem; please help us solve it,” he said.
CUE IN SENDEGEYA…ON POLITICIANS…ENG//
The Minister of State for Microfinance, Shartsi Kutesa Musherure, said the government had projected that PDM beneficiaries would have repaid at least Shs600 billion by September 2026, but only Shs3.9 billion had been recovered.
She attributed the low recovery rate partly to a perception among some beneficiaries that the programme was an election incentive.
“Now that the elections are over, our people need to be reminded of their obligation to pay,” Kutesa said.
She urged members of the public to demand accountability for the funds, saying the money should be recovered and lent to other beneficiaries.
“To all Ugandans, this is your money. Please come out and demand it so that it can benefit others,” she added.
CUE IN KUTESA….ON PDM…RR/ENG//
Meanwhile, Kisoro District Commercial Officer Aaron Nfitumukiza partly attributed the low recovery to challenges affecting the Wendi mobile money service, particularly in rural areas.
He said some beneficiaries had attempted to repay their loans but were unable to do so after Wendi agents told them they lacked the electronic balance, commonly known as float, required to process the transactions.
CUE IN… NFITUMUKIZA…ON WENDI PDM…ENG//
Sendegeya acknowledged the challenges and said the government was exploring possible solutions.
He said the government initially used commercial banks to process PDM transactions before switching to the Wendi mobile wallet platform to speed up disbursements, reduce bureaucratic processes and improve financial inclusion among rural communities.
CUE IN SENDEGEYA…ON WENDI PDM…ENG//
By September 2026, the government had invested Shs4.317 trillion through PDM SACCOs, benefiting 3,571,108 people, with women accounting for more than 53 per cent of the beneficiaries.
The first PDM loans were disbursed in December 2022, while repayment was scheduled to begin in March 2026. However, beneficiaries were given a 24-month grace period before enforcement of repayments.
The Ministry of Finance, Planning and Economic Development is conducting regional budget consultative conferences to engage local leaders and other stakeholders on national and regional budget priorities.
According to the ministry, the consultations are intended to assess the outcomes, successes and challenges of previous budgets, gather views from regional leaders and communities, and inform upcoming fiscal policies.
The meetings are also intended to align local priorities with national development programmes and guide local governments on strategic frameworks, including the Agro-Industrialisation, Tourism and Mineral Development (ATMS) pathways.
