For the first time Uganda government has allocated Shs4.4 trillion for Parish Development Model (PDM) in the 2026/27 financial year as part of broader efforts to boost household incomes, expand financial inclusion, and accelerate Uganda’s transition to a productive, money-based economy.
Finance Minister Hon. Henry Musasizi announced the development while presenting the Shs84.3 trillion national budget in Kampala however he stressed the money is expected to support implementation of the programme across all 10,589 parishes nationwide.
According to Minstry of Local government the PDM implementing arm more than four million Ugandans are projected to have accessed parish-level finance by the end of June,
“The Parish Development Model is not merely a financing programme; it is a structural transformation programme aimed at moving households from poverty to prosperity,” Mr Musasizi told Parliament.
Launched in 2021 as government’s flagship wealth creation initiative, PDM seeks to move households engaged in subsistence production into the money economy by providing affordable financing, enterprise support, and market linkages at the parish level.
Finance Minister in his remarks stated that the next phase of PDM implementation will focus on increasing productivity, supporting agro-processing, strengthening market access, and promoting enterprise development through cooperatives and Savings and Credit Cooperative Organisations (SACCOs) ading that the allocation forms part of a wider government strategy to stimulate economic growth through investments in agriculture, industrialisation, and private sector development.
To enhance its capacity to provide long-term financing for strategic sectors such as agro-industrialisation, manufacturing, tourism, and infrastructure development,government has the government has cumulatively capitalized the Uganda Development Bank (UDB) with Shs 1.6 trillion to provide long-term, low-cost capital for strategic sectors vital to industrialization and value addition,
Musasizi argued the additional funding will enable the bank to extend more affordable credit to medium and large-scale enterprises, particularly projects that contribute to job creation, value addition, and export growth.
Overall, the government has invested nearly Shs11 trillion in wealth creation programmes targeting farmers, youth, women, and organised enterprise groups through affordable financing and income-generating initiatives.
The combined investments in the Parish Development Model, development banking, agriculture, and strategic sectors underscore government’s continued emphasis on structural economic transformation driven by production, value addition, and inclusive growth.
According to UBOS new Multidimensional Poverty Index (MPI) report based on findings from the 2024 National Population and Housing Census, offering a broader assessment of poverty beyond income levels report, 27 percent of Ugandans are classified as multidimensionally poor, reflecting deprivations in key areas such as education, health, living standards, and access to essential services.
The index moves beyond traditional income-based measures by capturing overlapping disadvantages experienced by households.
The findings highlight significant regional disparities, with the Karamoja sub-region emerging as the most affected, recording a poverty rate of 56 percent. Within the region, Kaabong District is the most affected district nationwide.
Other regions with high poverty levels include West Nile at 39 percent, Sebei at 33 percent, Acholi at 33.2 percent, Rwenzori at 32.2 percent, Tooro at 31 percent, Bukedi at 30.9 percent, and Bunyoro at 30.1 percent.
In contrast, Buganda recorded some of the lowest levels of multidimensional poverty at 18 percent, followed by Teso at 24 percent, Lango at 25 percent, and Ankole at 25.8 percent.
The report identifies key drivers of poverty, including health-related challenges, limited access to clean and safe water, unemployment, poor sanitation, and inadequate housing conditions—factors that continue to reinforce cycles of deprivation across regions.
Speaking at the dissemination event, State Minister for Finance (Planning), Amos Lugoloobi, said the findings will play a critical role in strengthening government planning and improving the targeting of interventions.
