Exploring the Challenges and Opportunities in Microfinance Group Lending Model among HIV and AIDS Affected Households

摘要

Microfinancing has been taken as the panacea in poverty reduction and disaster mitigation in many third world countries world over. The mode of application of this tool in HIV and AIDS disaster mitigation, however, poses unique challenges and opportunities to Microfinance Institutions (MFIs) and their clients. To find out the nature of these challenges and opportunities experienced by HIV and AIDS MF clients in group lending model, cross-sectional survey design was used to execute the study in Kakamega County, Kenya. Two hundred and five (205) HIV and AIDS affected households who were clients of Microfinance (MF) were purposively sampled for questionnaire survey. Separately, seven (7) Focus Group Discussions and five (5) in-depth Interviews were conducted among affected household heads and MF managers. The study found that microfinancing can be a major instrument in asset rebuilding to mitigate the impacts of HIV and AIDS disaster. However, MFIs face a number of challenges key to which is lack of government policy to guide MF operations in this essential sub-sector. Consequently, high interest rates, loan defaulting and loan hawking by MF clients abound. The study recommends that the government comes up with a clear policy to regulate and streamline this significant sub-sector. Local communities need to be sensitized on the role of MFIs in poverty alleviation in HIV and AIDS affected households in Kenya.