PDM Secretariat Blames Politicians for Low Loan Recovery

The Parish Development Model (PDM) Secretariat has attributed the low recovery of funds disbursed to beneficiaries to politicians who misled communities into believing that the money was a token of appreciation for their votes in the 2021 elections. This revelation was made during the Kigezi Sub-Region Budget Conference organised by the Ministry of Finance, Planning and Economic Development in Kabale District.

Government records indicate that more than 4.31 trillion Shillings have been invested in PDM, with about 2.75 trillion Shillings disbursed to beneficiaries as soft loans by mid-2026. However, only 3.9 billion shillings have been recovered nationally. Robert Sendegeya, the Research and Policy Officer at the PDM Secretariat, said the programme initially experienced a stampede after politicians turned it into a campaign tool.

Sendegeya urged politicians to return to communities and sensitise beneficiaries about their obligation to repay the money, stressing that PDM is a revolving fund intended to benefit successive groups of Ugandans. He said political messaging around the programme had contributed to the perception among some beneficiaries that the money was a political reward rather than a loan.

The Minister of State for Microfinance, Shartsi Kutesa Musherure, said the government had projected that PDM beneficiaries would have repaid at least 600 billion Shillings by September 2026. However, she said only about 3.9 billion Shillings had been recovered, attributing the low repayment rate partly to the perception that the programme was an election incentive.

Musherure called on Ugandans to demand accountability for the funds and encourage beneficiaries to repay so that the money can revolve and support other communities. Kisoro District Commercial Officer, Aaron Mftumukiza, partly attributed the low repayment to challenges affecting the Wendi mobile money service, particularly in rural areas.

Mftumukiza said some beneficiaries had attempted to repay their loans but were unable to do so after Wendi agents told them they did not have sufficient electronic balance to process the transactions. Sendegeya acknowledged the challenges affecting Wendi and said the government was exploring possible solutions.

By September 2026, 4.317 trillion Shillings had been invested through PDM SACCOs, benefiting 3,571,108 people, more than 53 per cent of whom are women. The Ministry of Finance, Planning and Economic Development is conducting regional budget consultative conferences to engage local leaders, communities and other stakeholders on national and regional budget priorities.

Key points

• The PDM Secretariat blames politicians for misleading communities about the nature of the funds.
• Only 3.9 billion Shillings have been recovered from the 2.75 trillion Shillings disbursed to beneficiaries.
• The government is exploring solutions to challenges affecting the Wendi mobile money service.