MPs probe GROW Project over Shs57bn unspent money, unfair distribution of funds

Kampala, (UG):- The Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project has come under scrutiny after an Auditor General’s report revealed that Shs56.6 billion remained unspent in the last financial year.

According to the report for the financial year ending June 30, 2024, only Shs18.52 billion out of the allocated Shs75.1 billion was utilized, leaving a significant unspent balance. The report highlights that this shortfall affected the provision of credit to participating financial institutions, which were expected to support beneficiaries.

“Management explained that they have implemented measures such as joint and collaborative efforts with implementing partners, which has significantly enhanced the speed of project implementation and facilitated the efficient utilization of funds,” the report stated.

These concerns surfaced as Members of Parliament on the Public Accounts Committee (PAC) – Central Government examined the project’s performance.

MPs Raise Concerns Over Fund Distribution and Accessibility

Hon. Susan Amero (Indep., Amuria District Woman Representative) questioned the uneven distribution of funds, particularly in Northern Uganda. “When you go to districts in Northern Uganda, you will find that a lot of money is spent within Lira City and not the other districts. In Alebtong and Amuria, the money has not been received. So, where is our share?” Amero asked.

Hon. Joseph Ssewungu (Kalungu West County) raised concerns over stringent requirements that may have hindered women from accessing the funds.

“If you compare the number of women who have registered in different areas to get this money, all of it should have been disbursed by now. When negotiating with the World Bank, did you align their requirements with what women can afford?” he questioned.

Hon. Naboth Namanya (FDC, Rubabo County) pointed fingers at the participating financial institutions, alleging they were prioritizing their own loans over the GROW project funds. “What is important now is to oversee participating banks. Banks tend to get the appetite for giving their own loans while delaying the release of GROW money. They advise applicants to take other loan options while telling them that the GROW money is not available,” Namanya said.

The MPs’ query comes just days after the public raised concerns about the accessibility of GROW funds that were brought directly to President Yoweri Museveni’s attention at the International Women’s Day celebrations in Kyankwanzi District on March 8, 2025.

A woman at the function stood out from the crown and expressed frustration to the President over the restrictive conditions set by commercial banks, which hindered rural women’s access to the funds. In response, President Museveni criticized government officials for allowing banks to impose such criteria and reassured the public that the GROW fund, though a small amount, should not be a cause for concern.

GROW Project Coordinator Responds

Dr Ruth Aisha Kasolo, the GROW Project Coordinator, revealed that six banks; Centenary Bank, Finance Trust Bank, Post Bank Uganda, DFCU Bank, Equity Bank Uganda, and Stanbic Bank Uganda—were allocated Shs50.1 billion in the project’s first year.

She explained that the underutilization of funds was due to the project being in its early stages, with agreements between the government and banks being finalized late in the audited year.

“The under-disbursement was because the project was in its initial stages of implementation. The agreements with the six participating banks were signed towards the end of the year under audit. So we received and paid money to beneficiaries in this current financial year,” Kasolo said.

She added that as of December 31, 2024, a total of 2,175 women across 84 districts and two cities had benefited from the project, with most recipients in the trade and commerce sector, followed by agriculture, agribusiness, construction, and engineering.

Dr Kasolo also referenced a presidential directive ensuring equitable distribution of GROW funds. She assured MPs that in the second year, priority would be given to districts that had not yet received funding.

“For regions with zero to five loan beneficiaries, the government has engaged the World Bank to onboard microfinance deposit-taking institutions that will offer loans that do not require collateral. They will also cover women from refugee-hosting communities,” she said.