KABALE, June 21, 2026 – Authorities in Kabale Municipality have raised concern over the poor repayment of loans received by the beneficiaries of the Parish Development Model [PDM], revealing that only six beneficiaries have so far repaid their loans despite billions of shillings being disbursed under the government programme.
The concern was raised by the Kabale Municipality PDM Focal Person, Willis Atumurikire, during the election of a new leadership committee for the Central Central Parish PDM SACCO held at Kabale Municipal Stadium recently.
Atumurikire disclosed that since the rollout of the PDM in 2023, a total of Shs 4.3 billion has been disbursed to 207 groups across Kabale Municipality, benefiting 4,332 individuals. However, only six beneficiaries have made repayments, a situation he said threatens the sustainability of the revolving fund.
He warned beneficiaries against treating the funds as free government money, emphasizing that the Shs1 million provided under the programme is intended to support agricultural production and household income generation.
“The money is a revolving fund meant to benefit many people. Beneficiaries must repay after investing in their enterprises so that other eligible community members can also access the funds,” Atumurikire said.
He urged recipients of the soft loans to begin clearing their balances before the grace period expires, warning that recovery measures and legal action could be taken against defaulters when enforcement begins next year.
According to Atumurikire, failure to repay the funds undermines the objectives of the PDM, which was introduced by government to move 3.5 million households in the country from subsistence production into the money economy and improve household incomes.
Despite the low repayment rates, Atumurikire announced that government has allocated an additional Shs 50 million to each PDM SACCO in Kabale Municipality. The funds are expected to be disbursed to new beneficiaries between June and July this year.
He called on SACCO leaders and local authorities to ensure proper supervision of beneficiaries and encourage investments in viable income-generating activities that can improve livelihoods and strengthen local economic development.
The remarks were made during elections for a new leadership committee of the Central Central Parish PDM SACCO.
During the exercise, Francis Byamukama was re-elected as Chairperson. Titus Byarushayi was elected Treasurer, while Smith Ainomugisha was elected Secretary.
Speaking shortly after his re-election, Byamukama pledged to strengthen transparency and accountability in the management of PDM funds.
He also committed to working closely with local authorities to improve loan recovery and ensure that beneficiaries fulfill their repayment obligations.
Byamukama said the new leadership would focus on proper management of the additional capital expected to be disbursed in the coming weeks to ensure that the programme continues to benefit the intended households.
The Parish Development Model is one of the government’s flagship poverty eradication initiatives aimed at increasing household incomes through improved access to financial services and investment in productive enterprises. Beneficiaries receive Shs 1 million through parish SACCOs to support projects in sectors such as agriculture, livestock farming, trade, and other income-generating activities.
However, the low repayment rate recorded in Kabale Municipality highlights one of the major challenges facing the programme, with officials warning that the long-term success of the revolving fund will depend on beneficiaries honouring their repayment commitments.
Story by Jane Elizabeth Umutangana
https://thecooperator.news/pdm-saccos-in-lira-acquire-office-space-to-ease-operations/
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