Kampala, Uganda | URN | The government has so far disbursed 3.63 trillion shillings under the Parish Development Model (PDM) in a push to drive financial inclusion and lift millions of Ugandans out of subsistence livelihoods. The PDM is the government’s flagship poverty alleviation strategy. It targets households still trapped in subsistence production by channeling funds through parish-level SACCOs.
However, Members of Parliament have raised fresh concerns over transparency, equity, and long-term sustainability of the programme.
State Minister for Finance, Henry Musasizi, says over 3.6 million previously unbanked beneficiaries, with each verified parish Savings and Credit Cooperative Organizations (or Societies) – SACCO receiving UGX 50 million under the revolving fund.
“By the end of this financial year, we shall have invested over 4 trillion shillings in the PDM. So far, 3.63 trillion has been disbursed to last-mile beneficiaries, significantly expanding financial inclusion,” Musasizi stated.
MPs questioned whether the massive disbursements are translating into sustainable economic transformation.
Kira Municipality MP Ibrahim Ssemujju Nganda, a member of Parliament’s Finance Committee and Shadow Minister of Finance, warned that weak tracking systems could undermine the programme, drawing parallels with failed past initiatives.
“Many government programmes have collapsed because of poor tracking. Even Entandikwa failed for that reason; money was disbursed but never recovered. You cannot keep sending money forever,” Ssemujju said.
He also challenged the government’s narrative on economic growth, particularly in exports. “We keep reporting export growth, yet a significant share, especially from gold, does not benefit the country. The proceeds largely flow back to foreign actors,” he added.
Sheema Municipality MP Dicksons Kateshumbwa criticised the uniform disbursement model under PDM, arguing it ignores disparities in parish sizes and population. “A parish with 19 villages receives the same UGX 50 million shillings as one with six villages. That raises serious questions about equity,” Kateshumbwa noted.
In response, finance ministry officials said mechanisms are in place to track funds and ensure sustainability, including digital systems such as the WENDI platform, which is used to manage disbursements and repayments.
They revealed that 1.4 billion shillings was recovered from initial beneficiaries, signaling the start of the revolving fund cycle.
“The design is that funds revolve. Once beneficiaries repay, others can access financing. Government must, however, maintain oversight,” Musasizi explained.
The minister also acknowledged gaps in coverage, with some parishes yet to receive funds, but assured MPs that rollout is ongoing.
The scrutiny comes as the Ministry of Finance seeks 2.78 trillion shillings in the 2026/27 financial year, with 176.67 billion shillings earmarked for the Microfinance Support Centre, a key implementing agency for PDM and Emyooga.
Launched in 2022, the PDM is central to Uganda’s ambition to transition 39 percent of households still in subsistence into the money economy.
It builds on earlier interventions such as NAADS and Operation Wealth Creation, many of which were criticised for weak accountability and limited impact.
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