The two-year grace period for repayment of the Parish Development Model (PDM) loans expires in March 2026 with individuals subscribing to different PDM SACCOs expected to make repayments within the next one year.
This revelation was made by the State Minister for Luwero Triangle and National Coordinator for the PDM, Hon. Dennis Galabuzi while appearing before the Public Accounts Committee (Central Government) on Tuesday, 03 March 2026.
“The first batch of money was disbursed in the financial year 2022/2023 because in 2021/2022, there were issues with the money so we more or less discounted it. We are currently reminding parish chiefs and everyone involved in supervision of PDM to sensitise the public on this,” Galabuzi said.
His comments followed concerns by Members of Parliament about the manner in which the public interpreted the purpose of the funds under the programme.
Galabuzi urged MPs to support the ministry in sensitising the public about the operations of the programme and the need to ensure its effectiveness as a revolving fund.
“PDM is a game changer if well implemented. The issue of repayment should be a concerted effort from our side as government and from Members of Parliament who do oversight. If beneficiaries pay back, then others will also benefit,” Galabuzi noted.
Hon. Patrick Nsamba (NUP, Kassanda County North) said many Ugandans who received PDM money construed it as a ‘goodwill bonanza’ that does not require repayment.
“Do you have a communication strategy that will ensure the realignment of the public perception about the loans they took under PDM? Otherwise, they will be so disappointed that they have to pay back,” Nsamba said.
Kalungu West County MP, Hon. Joseph Ssewungu noted that the biggest challenge in effective implementation of the programme is communication and limited operation of the PDM technical committees.
He cited the Auditor General’s concern that the programme could suffer in coordination, delayed decision-making, and hiccups in monitoring and evaluation.
“During campaigns, the electorate would condemn PDM coordinators that they misused the money because there is no communication and committees are not giving reports. If you correct that, then public perception of the programme can improve,” Ssewungu said.
Hon. Fredrick Angura (NRM, Tororo South County) raised concern about the 127 parishes in the district that have not received funding under PDM.
The Permanent Secretary in the Ministry of Local Government, Ben Kumumanya clarified that the parishes have not received funding because they do not have elected leaders at administrative units.
“When you do not have elected leaders, you are not a fully operational parish and have no chairperson for the parish development committees. But the elections for local councils are in the pipeline and we are waiting for funding to execute them,” Kumumanya said.
According to the Auditor General’s report, the communication on guidelines for payment of the Parish Revolving Fund (PRF) is at final draft level and yet to be disseminated.
“I advised the accounting officer to prioritise the roles and responsibilities of the high-level policy committee and the inter-institutional PDM technical committee and ensure proper documentation of resolutions and action points,” reads the Auditor General’s recommendation.
