New reforms rolled out to strengthen PDM SACCO governance

KAMPALA, April 29, 2026 — Government has unveiled a raft of strategic reforms aimed at strengthening governance, accountability and community participation in the Parish Development Model Savings and Credit Cooperative Organisations [ PDM SACCOs ] in the country.

This was announced today by the National Coordinator of the PDM Secretariat, Dennis Galabuzi Ssozi, announced the changes during a press briefing at the Uganda Media Centre on Wednesday, saying the reforms are intended to reinforce parish-level leadership and expand ownership of the Parish Revolving Fund [PRF].

Galabuzi said the measures would ensure that PDM SACCOs, described as the financial and development engines of each parish, are led by credible and service-oriented individuals.

He noted that while many Ugandans view PDM SACCOs primarily as lending institutions through which PRF funds are accessed, their mandate is broader. According to him, the SACCOs are community-based development institutions tasked with driving the transition of subsistence households into the money economy.

A key reform is the immediate revision of SACCO membership provisions to allow all parish residents to participate in governance.

“The PDM SACCO must serve the entire parish. Every resident must have the opportunity to take part in its governance and management,” Galabuzi said, describing the move as a democratic imperative.

Under the new structure, membership has been divided into two categories. Category A comprises registered PDM Enterprise Groups, each represented by three officials, the chairperson, secretary and treasurer. Category B includes individual parish residents, who may join regardless of group affiliation.

Membership for individuals will be free, with costs covered by government through the PRF. Each member will have voting rights and may contest for leadership positions within the SACCO.

However, Galabuzi clarified that expanded membership does not change the existing criteria for accessing PRF funds, stressing that the reform is strictly aimed at improving governance.

Special general meetings are now being held in parishes across the country to operationalise the changes. Communities are expected to elect new leaders who will serve four-year terms.

The meetings will also include mandatory training sessions on SACCO byelaws, recent amendments, provisions of the Cooperative Societies Act, and members’ rights and responsibilities. Participants will further be guided on accountability mechanisms, including how to raise complaints and remove non-performing leaders.

Galabuzi urged residents from all backgrounds, including subsistence farmers, women and youth, to stand for leadership positions, emphasising that integrity and commitment, rather than wealth, are the key requirements.

He acknowledged reports of malpractice in some areas, warning that fraud, false inclusion of beneficiaries and extortion would attract disciplinary and legal action.

Fraud includes listing ineligible individuals, such as non-residents, on beneficiary registers, while extortion involves demanding payments for access to funds.

Galabuzi stressed that no fees should be charged at any stage, as membership is fully funded by government.

“The integrity of PDM must be protected. Those involved in malpractice should not be elected into leadership positions,” he said.

The PDM Secretariat reaffirmed its commitment to supporting parishes during the reform process, urging residents to actively participate in rebuilding transparent and accountable SACCO leadership structures.

“Members hold the ultimate authority. Vote freely, vote wisely and vote for your parish,” Galabuzi said.

launched in February 2022, the PDM is a Ugandan government strategy launched in 2022 to transition 3.5 million households from subsistence to a money economy via the parish level. It serves as a “last mile” service delivery mechanism, focusing on seven pillars including production, financial inclusion, and infrastructure, with SACCOs receiving funds for local investment.

Under the programme, each parish in Uganda receives Shs 100 million and the parish in return gives Shs 1 million to each beneficiary of the programme for investment in enterprises such s coffee, dairy, piggery, fish farming and many others.

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