PDM Secretariat Blames Politicians for Low Loan Recovery

The Parish Development Model (PDM) Secretariat has blamed politicians for misleading communities into believing that the money was a token of appreciation for their votes in the 2021 elections. The secretariat says such statements led to the low recovery of funds disbursed to beneficiaries.

The revelation was made during the Kigezi Sub-Region Budget Conference organised by the Ministry of Finance, Planning and Economic Development in Kabale District on Thursday.

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 what he described as a stampede after politicians turned it into a campaign tool following the 2021 elections and, later, during the 2026 election period.

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.

Meanwhile, 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.

She called on Ugandans to demand accountability for the funds and encourage beneficiaries to repay so that the money can revolve and support other communities. “To all Ugandans, this is your money. Please come out and demand it so that it can benefit others,” she said.  

Kisoro District Commercial Officer, Aaron Mftumukiza, however, 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, commonly known as float, to process the transactions.  

Sendegeya acknowledged the challenges affecting Wendi and said the government was exploring possible solutions. He explained that the government initially used commercial banks to facilitate PDM transactions but later shifted to the Wendi mobile wallet platform to speed up disbursements, reduce bureaucratic intermediaries and improve financial inclusion among unbanked rural communities.  

Government data indicates that 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 first PDM loans were disbursed in December 2022, while Parliament announced that loan repayments would begin in March 2026. Beneficiaries were, however, given a 24-month grace period before enforcement of repayment obligations.

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.

The consultations are intended to assess the outcomes, successes and challenges of previous budgets, gather views from regional stakeholders and inform upcoming fiscal policies.

The ministry also says the consultations will help align local priorities with national development strategies and guide local governments on frameworks such as the Agro-Industrialisation, Tourism and Mineral Development (ATMS) pathways.