Mbarara orders PDM beneficiaries to begin loan repayments as grace period ends
MBARARA CITY, April 8, 2026 — Authorities in Mbarara City have directed beneficiaries of the Parish Development Model [ PDM ] to begin repaying funds received under the government programme following the expiry of the grace period.
In an official communication dated March 27, 2026, the City Town Clerk, Justine Barekye, instructed division town clerks and other local leaders to mobilise beneficiaries to start honouring their loan obligations.
“The first PDM loans were issued in December 2022 and, as guided by Cabinet, the 24-month grace period for this category of loans has since elapsed,” Barekye said in the notice.
She emphasised the need for immediate action to ensure compliance, noting that beneficiaries must begin remitting their instalments without further delay.
“With the above background, you are requested to mobilise and remind beneficiaries in this category to begin paying their loan instalments,” the letter reads in part.
The directive further clarified that all repayments must be channelled through the respective PDM SACCO WENDI accounts, under the guidance of the City Commercial Officer.
“All loan repayments must be made to the respective PDM SACCOs’ WENDI accounts as guided by the City Commercial Officer,” Barekye added.
Copies of the letter were shared with key city officials, including the Resident City Commissioner, the Mayor, division mayors and parish-level leaders, underscoring the urgency of enforcing compliance across all administrative levels.
Launched in 2022, the Parish Development Model is a flagship initiative by the Government of Uganda aimed at transitioning households from subsistence living into the money economy. The programme provides financial support through parish-based SACCOs to boost income-generating activities.
In Mbarara City, the initiative has supported ventures such as poultry farming, piggery and small-scale baking, contributing to improved household incomes. However, authorities acknowledge ongoing challenges, including limited funding amid rising demand.
To date, the city has received approximately Shs 7.56 billion under the programme, disbursed to 23 SACCOs and benefiting more than 7,000 households.
Officials say the repayment phase is critical to sustaining the revolving fund and enabling more beneficiaries to access financing.
The two-year grace period for PDM loans expired in March 2026, with beneficiaries now expected to complete repayments within one year.
The State Minister for the Luwero Triangle and National Coordinator for the PDM, Dennis Galabuzi, recently told the Public Accounts Committee (Central Government) that authorities are intensifying sensitisation efforts.
“The first batch of funds was disbursed in the 2022/2023 financial year. We are reminding parish chiefs and all supervisors of the PDM to sensitise the public on repayment,” Galabuzi said.
According to the Auditor General’s report, guidelines for the repayment of the Parish Revolving Fund [PRF] are still at draft stage and have 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 to ensure proper documentation of resolutions and action points,” the report states.
https://thecooperator.news/over-4900-households-in-hoima-city-benefit-from-pdm/
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