March 26, 2026, Kampala-More than Shs2 billion disbursed under the Parish Development Model in Kira Municipality has come under scrutiny, with lawmakers raising alarm over weak recovery efforts that have seen only about Shs67.4 million returned to date.
The concerns were raised during a session of Parliament’s Public Accounts Committee on Local Government, where municipal officials were tasked to explain why hundreds of millions of shillings expected back into the revolving fund remain outstanding despite expired grace periods.
Appearing before the committee chaired by Gilbert Olanya, Kira Municipality leaders led by Town Clerk Benon Yiga faced tough questions over the worrying trend that could derail the sustainability of the government flagship programme.
Olanya expressed concern that the slow pace of recovery risks undermining the core principle of the Parish Development Model, which is designed to operate as a revolving fund at the beneficiary level.
“We are happy that you appreciate the programme and are even asking for more resources, but up to now you have never recovered any money out of PDM. Do you think this money will be recovered?” he asked.
He stressed that while funds are channelled to parishes as grants, they are effectively loans to individual beneficiaries who must repay to enable others to benefit.
“This money is not for free and the beneficiary must return that loan so that it helps other beneficiaries in that parish,” Olanya added.
Committee members warned that failure to enforce repayments early could see the initiative follow the troubled path of previous government programmes. Legislators pointed to the collapse of earlier revolving funds, cautioning that history could repeat itself if strict accountability is not enforced.
Data presented to the committee showed that by the time of the audit for the financial year ending June 2025, at least Shs309 million should have been recovered from beneficiaries whose repayment periods had elapsed, but this had not been achieved.
Kira Municipality’s Parish Development Model focal person, Ronald Kagolo acknowledged the slow recovery but said the local government was taking steps to address the gaps.
“For example, Bweyogerere has recovered Shs8.5 million, Kyaliwajjala Shs7.4 million, bringing the total to Shs67.4 million,” Kagolo said.
He attributed the delays to earlier disbursement challenges, noting that some beneficiaries received funds before the introduction of a digital payment system.
“Initially we disbursed without a system but now we have Wendi through which people should pay. Those who got money outside the system are being enrolled so they can start repayments,” he explained.
However, lawmakers remained unconvinced, raising concerns about the absence of a clear and verifiable database of beneficiaries. They questioned whether funds were being issued without proper identification and tracking mechanisms.
“You seem to be disbursing funds without a clear database. Do you have the specific individuals who qualify?” one member asked, echoing concerns raised in the Auditor General’s report.
In response, Kagolo said beneficiaries are selected through village level vetting processes involving local leaders to identify subsistence households eligible for support.
The committee has now directed Kira Municipality to submit within seven days a detailed report showing individual beneficiaries and the amounts recovered from each, including those who have defaulted after the expiry of their repayment timelines.
“We do not deal with guesswork. Give us the names of the individuals and how much each has recovered,” Olanya insisted.
He warned that Parliament would not allow a repeat of past failures that saw billions lost under similar initiatives.
“What we are suspecting is the same thing that happened to earlier programmes is going to occur again. If we are not serious, government is going to lose huge amounts of money in the name of helping beneficiaries,” he said.
Town Clerk Yiga acknowledged the shortcomings and pledged to strengthen monitoring and recovery mechanisms.
“We appreciate the concerns and we promise to do better. We are learning lessons on how to manage and monitor the programme because it is a people centred approach,” he said.
