Leaders of Parish Development Model (PDM) SACCOs in Kwania District have been challenged to strengthen loan recovery mechanisms amid concerns over low repayment rates among beneficiaries.
The call was made during a training session held at Kwania District Council Hall, where SACCO leaders were equipped with skills on conducting Annual General Meetings (AGMs) and establishing recovery structures within their respective parishes. The meeting was attended by officials from the District Commercial Office, representatives of the Chief Administrative Officer, and the Resident District Commissioner.
District Commercial Officer Felix Emmanuel Okwanga expressed concern over the slow pace of loan recovery, noting that only two out of the district’s 49 PDM SACCOs have so far registered repayments.According to district records, Eastern Ward Inomo PDM SACCO in Inomo Sub-county recovered UGX 5.99 million from 29 beneficiaries, while Alido PDM SACCO in Chawente Sub-county recovered UGX 1.59 million from three members.
In total, the two SACCOs have recovered UGX 7.58 million. Okwanga said loan recovery remains one of the biggest challenges facing SACCOs and urged leaders to devise practical strategies to encourage beneficiaries to begin repayments.He added that the government expects the funds to be recovered so that other community members can also benefit.
He noted that even small monthly installments can make a difference, especially as the harvesting season approaches. To improve compliance, Okwanga revealed that the district plans to conduct weekly radio talk shows every Thursday to educate beneficiaries on repayment procedures and the importance of loan recovery. He further urged SACCO leaders to continuously sensitize members on the long-term benefits of the Parish Development Model, emphasizing that the revolving fund is intended to remain within communities and support more households over time.
Okwanga also warned beneficiaries against assuming that the government will automatically deduct their PDM loans from cattle compensation funds, noting that the two are separate and not all beneficiaries will receive compensation at the same time.
Patrick Bura, the Kwania District Senior Commercial Officer, echoed the call for intensified mobilization, saying beneficiaries who successfully repay their loans stand a chance of accessing higher funding under the programme. Meanwhile, Kwania District Deputy Speaker Jacob Edule urged SACCO leaders to closely monitor funded projects to ensure that beneficiaries use the money for its intended purpose.
“Leaders must regularly follow up on beneficiaries to prevent diversion of funds and ensure the money generates the intended impact,” Edule said.
Among the SACCOs that have recorded repayments, Alido PDM SACCO Chairperson Robson Opoka attributed their success to continuous sensitization and direct engagement with beneficiaries. He said leaders encouraged members to make gradual repayments according to their financial capacity and conducted home visits to guide some beneficiaries through the repayment process.
“We encouraged people to start with whatever amount they could afford instead of waiting until they had the full amount. That approach helped us recover UGX 1.5 million,” Opoka said. However, he identified challenges in using the Wendi digital payment platform as one of the major obstacles to recovery. According to him, some beneficiaries have funds in their accounts but lack the technical knowledge to transfer them back to SACCO accounts.
Nelson Odoc, the Chairperson of Inomo Eastern Ward PDM SACCO, said collaboration with local leaders, parish chiefs, and extension workers has played a key role in mobilizing beneficiaries and encouraging repayments. He said members were informed that repayment would increase their eligibility for larger loans in the future, which has encouraged many beneficiaries to plan repayments after the harvesting season in September.
The Ministry of Finance’s PDM implementation guidelines state that loan repayment schedules should be determined based on the nature of each enterprise and agreed upon by both the beneficiary group and the SACCO. The guidelines further provide that repayment periods should not exceed three years, depending on the nature of the financed enterprise. URN