Politics 20 August 2026 Nile Post
PDM Fund Repayment Rate Alarming Low, Only 0.35% Returned
A mere Shs3.4 billion has been repaid by beneficiaries of the Parish Development Model (PDM) out of a staggering Shs966 billion that is now due. This low repayment rate is raising serious concerns about the long-term viability of the program's revolving fund. Source: https://nilepost.co.ug/news/365503/only-shs34bn-refunded-out-of-shs966bn-pdm-funds-minister-reveals
State Minister for Finance, Hon. Shartsi Musherure, disclosed a startlingly low repayment rate for the Parish Development Model (PDM) funds. During a crucial meeting chaired by Prime Minister Robinah Nabbanja, it was revealed that only Shs3.4 billion has been returned by beneficiaries against a total of Shs966 billion that should have been repaid.
The PDM is designed as a revolving fund, meaning that money repaid by initial beneficiaries is intended to be re-lent to other households within the same parish to foster wider wealth creation. The current repayment figures cast a significant shadow over this core principle, raising questions about the program’s sustainability.
Prime Minister Nabbanja convened the meeting with ministers, PDM Secretariat officials, and other stakeholders to assess the program’s performance two years into its implementation. Key areas under review included fund disbursement, beneficiary selection, fund utilization, and, critically, repayment rates.
Despite the overall concern, some areas have shown promise. Kakumiro District was highlighted for its significant progress, alongside Mubende and Maracha. An official from the PDM Secretariat specifically commended the Prime Minister’s leadership in Kakumiro, attributing the district’s success to effective beneficiary mobilization and diligent follow-up.
Prime Minister Nabbanja emphasized that the PDM is fundamentally about wealth creation, not handouts. She urged local leaders to intensify sensitization efforts, ensuring beneficiaries understand that the funds must be repaid for others to benefit. Measures to address the low repayment rate are being considered, including strengthening parish-level PDM committees, improving record-keeping, and pursuing legal action against deliberate defaulters.
The PDM Secretariat plans to increase transparency by publishing parish-specific repayment rates next quarter, aiming to foster community accountability. The Shs966 billion figure represents funds that have passed their grace period and are now overdue.
Source: Nile Post