The Government of Uganda has released Shs 529 billion to capitalise 10,589 verified Parish Development Model (PDM) SACCOs across the country, marking the first tranche for the 2025/26 financial year.
Finance Minister Matia Kasaija, speaking at the Ministry of Finance headquarters, said the money will begin hitting SACCO accounts starting tomorrow, with each verified SACCO due to receive Shs 50 million directly.
“The Parish Development Model is no longer a theory. It is a reality. It is in your parishes. It is in your households,” Kasaija emphasised, noting that the funds are meant strictly for investment and production, not consumption.
Transforming Parishes Into Economic Engines
Since its inception, the PDM has seen Shs 3.216 trillion transferred directly to parishes, with 99 percent of that money reaching more than 3.27 million beneficiaries.
A significant portion of the previous disbursements has gone into agriculture and livestock, including investments in food and cash crops, piggery, and poultry. Officials say this trend is expected to continue as households increasingly shift from subsistence to commercial production.
Safeguards and Warnings
Kasaija warned parish officials, SACCO leaders, and local administrators against any form of misuse, saying the government will not tolerate abuse of the funds. He urged leaders to ensure proper beneficiary selection, strict monitoring, and effective loan recovery to sustain the revolving fund.
The Ministry of Finance also reminded the public that PDM money is a revolving fund, meaning that as beneficiaries repay, the money stays within the SACCO to support new borrowers. To date, hundreds of millions have already been recovered and reinvested at the parish level.
Resident District Commissioners and District Internal Security Officers have been instructed to step up oversight, with the government signalling tough action against fraud, extortion, or mismanagement.
The second tranche for the 2025/26 financial year will follow later, depending on performance and accountability at the parish level. The government is also considering adjusting future allocations so that bigger or more densely populated parishes receive larger disbursements.
In addition to the Shs 529 billion released for SACCO capitalisation, the government has budgeted more than Shs 1 trillion for other PDM-related facilitation, including support for parish structures, persons with disabilities, administration, and monitoring.
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