Authorities at Mbarara City Council have directed beneficiaries of the Parish Development Model (PDM) to begin repaying funds received under the government program, following the expiry of the agreed grace period.
In an official communication dated March 27, 2026, Justine Barekye, the City Town Clerk of Mbarara City instructed division town clerks and other local leaders to mobilize beneficiaries to start honoring their loan obligations.
“The first PDM loans were issued in December 2022 and as guided by Cabinet, the grace period of 24 months for the loans in this category has since elapsed,” Barekye stated in the notice.
She emphasized the need for immediate action by local authorities to ensure compliance, noting that beneficiaries must begin remitting their installments without further delay.
“With the above background, this is to therefore request you to mobilize and remind beneficiaries in this category to begin paying their loan installments,” the letter reads in part.
The directive further clarified that all repayments must be channeled through the respective PDM SACCO WENDI accounts, under the guidance of the City Commercial Officer.
“All loan repayments MUST be made to the respective PDM SACCOs WENDI accounts as guided by the City Commercial Officer,” Barekye added.
Copies of the letter were shared with key city officials, including the Resident City Commissioner, the Mayor, division mayors, and parish-level leaders, underscoring the urgency of enforcing compliance across all administrative levels.
Launched in 2022, the Parish Development Model is a flagship initiative by the Government of Uganda aimed at transitioning households from subsistence living into the money economy. The program provides financial support through parish-based SACCOs to boost income-generating activities.
In Mbarara City, the program has supported ventures such as poultry farming, piggery, and small scale baking, contributing to improved household incomes. However, authorities acknowledge ongoing challenges, including limited funding in the face of rising demand.
To date, the city has received approximately Shs 7.56 billion under the program, disbursed to 23 SACCOs and benefiting more than 7,000 households.
The repayment phase is critical to sustaining the revolving fund and enabling more beneficiaries to access financing under the program.
The two-year grace period for repayment of the Parish Development Model (PDM) loans expired in March 2026 with individuals subscribing to different PDM SACCOs were directed to make repayments within the next one year.
This revelation was made by the State Minister for Luwero Triangle and National Coordinator for the PDM, Hon. Dennis Galabuzi while appearing before the Public Accounts Committee (Central Government) on Tuesday, 03 March 2026.
“The first batch of money was disbursed in the financial year 2022/2023 because in 2021/2022, there were issues with the money so we more or less discounted it. We are currently reminding parish chiefs and everyone involved in supervision of PDM to sensitise the public on this,” Galabuzi said.
According to the Auditor General’s report, the communication on guidelines for payment of the Parish Revolving Fund (PRF) is at final draft level and yet to be disseminated.
“I advised the accounting officer to prioritise the roles and responsibilities of the high-level policy committee and the inter-institutional PDM technical committee and ensure proper documentation of resolutions and action points,” reads the Auditor General’s recommendation.
