The Minister of Finance, Planning and Economic Development, Matia Kasaija, has issued a strong warning against the illegal reduction or manipulation of Parish Development Model (PDM) loans by officials and intermediaries, stressing that every beneficiary must receive the full amount approved by their SACCO.
Speaking while announcing the release of the first tranche of UGX 529 billion for the capitalisation of PDM SACCOs for the 2025/2026 financial year, Kasaija said government will not tolerate any practice where loans are slashed, deductions imposed, or money siphoned off before reaching beneficiaries.
Kasaija said the disbursement is in line with PDM policy under which the government releases funds in two tranches of UGX 50 million per SACCO every six months.
“All the 10,589 verified PDM SACCOs will receive UGX 50 million each directly into their accounts. This money must reach the intended beneficiaries in full. No one is allowed to slash or deduct a single shilling from these loans,” Kasaija warned.
He reiterated that no beneficiary should be charged any fee to access the loans, adding that any official found engaging in extortion, manipulation or unauthorized deductions will face disciplinary and legal action.
Kasaija emphasised that the funds are strictly for investment and production, aimed at transforming households from subsistence into income-generating units, and must not be diverted for personal use or political activities during the election period.
“The Parish Development Model is no longer a theory. It is a reality. It is in your parishes, in your homes and in your households. It is growing stronger and more impactful,” he said.
Government has so far transferred UGX 3.216 trillion to 10,589 parishes, with each parish receiving at least UGX 300 million, and 99 percent of these funds already disbursed to 3.27 million Ugandans.
For the current financial year, government has allocated Shs1.097 trillion to further strengthen the programme, including funding for the Parish Revolving Fund, SACCO administration, and operational support for parish-level structures.
The Minister urged communities to report any cases of loan slashing, illegal deductions or corruption, stating that government remains committed to ensuring transparency, fairness and impact in the implementation of the Parish Development Model.
The funds are accessed through loans issued by PDM SACCOs and channeled via the digital Wendi system, developed by MTN Uganda in partnership with PostBank, to enhance transparency and accountability.
For the current financial year, the government has also allocated Shs1.097 trillion in new capital and facilitation to strengthen PDM implementation. This includes Shs1.1 trillion for the Parish Revolving Fund, Shs5.3 billion for SACCO administration, Shs4.2 billion for loan withdrawal charges, Shs4.7 billion for support to persons with disabilities, Shs10.6 billion for parish development committees, and Shs12.7 billion for duty facilitation for parish chiefs and town agents.
At the launch of the PDM, an estimated 42 percent of Ugandans were living in multidimensional poverty, according to the 2022 Uganda Bureau of Statistics report. Three years after implementation, the programme has reached 832,746 households, although about 3.5 million households, representing 33.1 percent of the population, remain in subsistence according to the 2024 National Population and Housing Census.
The ministry reiterated that the funds will reach every parish through their SACCO accounts and must only be used for productive ventures aligned to the objectives of transforming households into sustainable economic contributors.