Nakaseke district authorities and residents
have disagreed over proposed interest rates on Parish Community Association
In the 2018/19 financial year, the Luweero
Triangle Ministry under the Parish Community Associations programme injected
Shillings 540million in the Parish associations in Nakaseke district to boast
Each parish received Shillings 30million
to support the associations within its jurisdiction to start income generating
projects. The benefiting sub counties are Semuto, Nakaseke, Kapeeka and Semuto
town council in Nakaseke district.
The Policy guidelines empower Associations to
set own annual interest rates for borrowing the money. As result the
Associations set the interest at between 1-3 percent on the loans that are
payable in a year.
The Parish Community Association members have
defended the low interest rates, saying they are poor and need to maximize
profits from the revolving funds. Others said they intend to invest in
agriculture, which suffers adverse weather changes.
Juma Ssewanyana. the Chairperson Kasaga Parish
Community Association in Nakaseke Sub county, says that meeting which was
convened by group resolved to set the interest rate at 1% to enable residents
maximize profits and get out of poverty.
Betty Nakiboneka, a resident of Kigege village
in Nakaseke Sub County, says that most residents intend to invest the money in
agriculture, which attracts low profits because of the adverse climate change
Geoffrey Ndugga, a member of Tree Growers
Association in Kasambya A village, says that they set the interest rate at 2%
to attract people to join the Associations as drivers of development.
// Cue in: “Ensonga eya…
But district authorities have rejected the
interest rates saying it can’t cater for operations and growth of the fund. Richard Mavuma, the Nakaseke District Finance
Secretary, says the interest rate will be helpful to enable Association
executives to process documents, cover their transport and bank charges among
Mavuma warns that setting low interests means
that the executive will use money intended for loans to cater for their operational
costs, which may kill the idea. He says they also want the time for servicing
the loans reduced to six months to enable other people benefit from the funds
within the shortest time possible.
Ignatius Koomu Kiwanuka, the Nakaseke LC 5
Chairman, says the district prefers that the interest rate be raised to 8-10%
to cater for the high operational costs. He says low interest rates will kill
the idea of the revolving fund like other related programs in the past.
// Cue in: “These people…
Cue out:…to pay back”//
//Cue in: “Njagala okubategeza…
Cue out:..eddembe lyayo,”//
Ramathan Kato, the Nakaseke District Focal
Person for the Parish Community Association program, says although the policy
guidelines empowers PCAs to set own interest rates, they will sensitise the
beneficiaries o the need to raise it if they want the program to create a bigger
impact in the area.
The program is being piloted in selected sub
counties in eight districts before it’s rolled out in all districts in Luweero
Triangle. The targeted districts include Luweero, Nakaseke,
Kyankwanzi, Kabarole, Kasese and Bunyagabu among others. Shillings 8 billion
was allocated in the first phase of the scheme.
Luweero Triangle has introduced several program
intended to boast the income of veterans and residents affected by the National
Resistance Army war. However, the programs have failed to create
impact as residents often default on repaying the revolving funds claiming it
is in appreciation of their support to president, Yoweri Museveni.
In the 2010/2011 financial year, the office of
the Prime Minister through the Luweero Triangle Ministry released funds to be
issued to residents as soft loans to set up small scale businesses to boost their
The prime minister’s officer later suspended the
program because of the high loan default rate. In 2008, the Agriculture, Animal
Industry and Fisheries Ministry distributed hundreds of head of cattle to
farmers in Luweero under the livestock restocking program.
farmers were expected to pass over calves to other farmers for continuity of
the program but this was also suspended indefinitely after the farmers sold the