Tororo officials urged to ensure PDM beneficiaries repay loans as agreed
A July 2025 report by Tororo District Local Government indicates Shs 16,607,800,000 was disbursed to 155 PDM SACCOs in the 2022/23 financial year, with 16,798 beneficiaries in the district recorded as having received the funds disbursed by the SACCOs.
TORORO, February 26, 2026 — Tororo District Local Government has directed the first beneficiaries of the Parish Development Model [PDM] to begin repaying loans disbursed under the programme, following the expiry of the two-year grace period.
In a circular dated February 23, 2026 and addressed to all town clerks and senior assistant secretaries, the district’s Chief Administrative Officer [CAO] reminded implementers that the first PDM loans were issued in December 2022 [Quarter 2 of financial year 2022/20] and the 24-month grace period granted by Cabinet expired in December 2024.
“The first PDM loans were issued in December 2022 and, as guided by Cabinet, the grace period of 24 months for this category of loans elapsed in December 2024. You should therefore notify the PDM SACCO boards that beneficiaries may now commence repayment of the loans to the SACCOs for onward lending to other members within the parish or ward,” the circular states in part.
It adds: “Beneficiaries should initiate Parish Revolving Fund [PRF] loan repayments for those whose 24 months’ grace period has expired. Repayments must be made in accordance with the previously agreed schedules.”
The circular emphasises that all repayments must be made to the respective PDM SACCOs’ Wendi accounts, and includes guidance on the repayment process for beneficiaries.
Copies of the CAO’s circular were sent to the Resident District Commissioner, District Internal Security Officer, PDM Focal Point Person, District Commercial Officer, parish chiefs, ward agents and PDM SACCO board members to ensure the message reaches beneficiaries across all parishes.
PDM SACCO boards, parish chiefs and ward agents have been urged to cascade the information to beneficiaries within their respective areas of jurisdiction.
Launched in February 2022, the PDM is the Government’s flagship poverty eradication strategy aimed at transitioning households from subsistence living to participation in the money economy. It is anchored on seven pillars, with financial inclusion serving as the engine of the programme. Under this pillar, the Government established SACCOs in every parish to manage the PRF.
Under the arrangement, each beneficiary receives a soft loan of Shs 1 million to invest in the agricultural value chain. Enterprises supported include dairy farming, poultry, produce trading, apiary, piggery, fish farming and coffee growing, among others. Beneficiaries are granted a two-year grace period to stabilise their enterprises before repayment begins. Once repayments commence, both principal and agreed interest are returned to the PDM SACCO to facilitate lending to new members within the same parish.
A July 2025 report by Tororo District Local Government indicates Shs 16,607,800,000 was disbursed to 155 PDM SACCOs in the 2022/23 financial year, with 16,798 beneficiaries in the district recorded as having received the funds disbursed by the SACCOs.
The core principle of the PDM revolving fund is continuity. Government expects that once the first cohort repays, the same funds will circulate within the parish to support another group of households, reducing reliance on additional allocations from the national treasury. Delayed repayments or defaults risk undermining access to capital for other members of the community.
However, national oversight reports have raised concerns about discrepancies between funds released and those ultimately reaching beneficiaries.
Tororo’s directive signals a shift towards stricter enforcement as districts seek to safeguard the integrity of the fund. Local leaders are expected to intensify sensitisation, supervision and monitoring efforts to ensure beneficiaries meet their repayment obligations.
As the repayment phase gathers momentum nationwide, the long-term success of the PDM will depend not only on the volume of funds disbursed by government, but also on how effectively communities manage and recycle the resources entrusted to them.
Every financial year government disburses over Shs 1 trillion under the programme, and each approved parish in Uganda receives Shs 100 million out of this government capitalisation envelop.
https://thecooperator.news/bushenyi-authorities-urge-timely-repayment-of-pdm-loans/
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