By Wendy Awor
Kotido Municipality has so far recovered only Shs 1.16 million from just one Parish Development Model (PDM) beneficiary, representing a recovery rate of just 0.02 percent of more than Shs 5.8 billion disbursed to 6,157 beneficiaries.
Under the PDM, a government initiative launched in February 2022, beneficiaries receive Shs 1 million each, as a soft loan for investment in the selected enterprises, especially in the agricultural value chain.
As per the programme guidelines, beneficiaries are expected to repay the principal amount at an annual interest rate of six per cent after a two-year grace period.
Since the programme began in the 2022/23 financial year, Kotido Municipality has received more than Shs 7.7 billion and disbursed over Shs 5.8 billion to 6,157 households, leaving about Shs 1.9 billion yet to be disbursed.
Most beneficiaries received up to Shs 1 million, which they were expected to invest in enterprises such as coffee growing, dairy farming, piggery, fish farming and poultry keeping, among others.
However, Daniel Aachilla Lowot, the Kotido Municipality Commercial Officer and PDM focal point person, said the recovery rate remains extremely low, with only one beneficiary having fully repaid the money received.
He blamed the low recovery rate to prolonged drought, which has particularly affected crop production, including green grams, millet, sorghum, maize and groundnuts, as well as livestock enterprises such as piggery, goat and cattle rearing.
Aachilla also cited low literacy rate and political interference as other factors suffocating recovery efforts.
However, Aachilla stated that they have embarked on senstisation campaigns to encourage beneficiaries to repay the funds so that other eligible members of the community benefit from the programme.
