The two-year grace period for repayment of loans under the Parish Development Model (PDM) is set to expire in March 2026. Beneficiaries who subscribed to various PDM SACCOs are expected to begin repayment within the next year, government officials have confirmed.
The announcement was made by State Minister for Luwero Triangle and National PDM Coordinator Hon. Dennis Galabuzi during his appearance before the Public Accounts Committee (Central Government) on Tuesday, 3 March 2026.
“The first batch of money was disbursed in the financial year 2022/2023 because in 2021/2022, there were issues with the funds, so we more or less discounted it. We are now reminding parish chiefs and everyone involved in supervising PDM to sensitise the public on repayment,” Galabuzi said.
His comments came amid concerns from Members of Parliament over public misunderstanding of the purpose of PDM funds. Some Ugandans reportedly perceived the money as a gift rather than a loan to be repaid, raising fears that repayment rates may be low.
Galabuzi called on MPs to support the ministry in educating communities about the programme. “PDM is a game changer if well implemented. The issue of repayment should be a concerted effort between government and Parliament, which provides oversight. If beneficiaries repay their loans, other communities will also benefit from the revolving fund,” he said.
Concerns from Parliament
During the hearing, several MPs highlighted challenges facing the programme. Hon. Patrick Nsamba (NUP, Kassanda County North) warned that poor communication has caused confusion among the public. “Do you have a communication strategy that will ensure the realignment of public perception about the loans? Otherwise, people will be disappointed when they realise they are expected to repay,” Nsamba said.
Kalungu West County MP Hon. Joseph Ssewungu noted that communication gaps and limited functionality of PDM technical committees remain major obstacles to effective implementation. He cited the Auditor General’s report, which highlighted risks of poor coordination, delayed decision-making, and weaknesses in monitoring and evaluation. “During campaigns, the electorate accused PDM coordinators of misusing the money because committees were not reporting and there was little communication. Addressing this can improve public perception and confidence in the programme,” he said.
Delays in Funding Certain Parishes
Other concerns included funding delays in certain districts. Hon. Fredrick Angura (NRM, Tororo South County) raised issues about 127 parishes that had not yet received PDM funds. Permanent Secretary in the Ministry of Local Government, Ben Kumumanya, explained the delay is due to the absence of elected leaders at some administrative units.
“When you do not have elected leaders, the parish is not fully operational, and there is no chairperson for the parish development committees. Elections for local councils are planned, and once completed, funding will follow,” Kumumanya said.
Auditor General Recommendations
The Auditor General’s report also flagged the need for clear communication regarding repayment guidelines for the Parish Revolving Fund (PRF). The guidelines are currently at final draft level but have yet to be widely 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 to ensure proper documentation of resolutions and action points,” the report reads.
Government Commitment
Government officials emphasised that PDM remains a critical poverty-alleviation and wealth-creation initiative if implemented and monitored effectively. Officials stressed that sensitisation, repayment compliance, and strong committee operations are central to ensuring that the programme continues to benefit Ugandans across the country.
Galabuzi concluded by urging all stakeholders parish chiefs, SACCOs, and MPs to work together in raising public awareness and ensuring smooth implementation. “If the community cooperates and repays, this programme will continue to transform livelihoods across Uganda,” he said.