Monday, March 4, 2024
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Finance Ministry Tasks Banks On PDM Funds

Ramathan Ggoobi, the Secretary to the Treasury

The Ministry of Finance, Planning and Economic Development has tasked banks on the transfer of the Parish Revolving Funds to Parish Development Model SACCOs.

In March 2022, Cabinet directed Finance Ministry to disburse revolving funds under the PDM through the government financial institutions. In July 2023, Cabinet directed the use of the mobile wallet (WENDI) developed by the government banks for the disbursement of funds to PDM beneficiaries.

To date, nearly Shs 2 trillion has been disbursed to 193, 396 beneficiaries.

Finance Permanent Secretary, Ramathan Ggoobi, in a letter dated February 7, 2024 explained that WENDI App was chosen on grounds of transparency, convenience, financial inclusion and lower transaction costs.

He, therefore, tasked Post Bank, Housing Finance Bank and Pride Microfinance to among others be responsible for onboarding PDM SACCOs on the mobile wallet, ensure that all PDM SACCOs onboarded are well trained and supported, and ensure that all PDM loans paid on the WENDI mobile wallet are initiated from the Parish Development Management Information Systems (PDMIS). He also asked the banks to provide adequate agent network and float to ensure the efficient utilization and access to WENDI users.

“The purpose of this letter therefore is to clarify the framework for the use of the WENDI mobile wallet for the disbursement of PDM funds as directed by Cabinet,” wrote Ggoobi, who is also the Secretary to the Treasury.

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