FAHIDA Savings and Credit Project

Category 2

The Family Health Integrated Development Assistance (FAHIDA) Savings and Loan Project provides savings and credit services to HIV/AIDS infected and affected persons with an objective of mitigating the negative socio-economic impart of HIV/AIDS. It targets people living with AIDS (PLWA), affected who include widows, and orphans.

Loans are advanced to HIV/AIDS infected and affected persons who are either self employed or seeking to start up a business. The potential borrower must register with a self-help group and be willing to comply with K-Rep development Agency and group rules and regulations.

Goal of the Practice
  • The primary goal of the FAHIDA project was to establish and develop the capacity of "village banks", which are owned, financed, and managed by shareholders as well as directly lend to the infected and affected persons through solidarity groups on affordable terms that suit their socio-economic conditions.
Core Components
  • Provide HIV/AIDS infected and affected individuals with basic business management skills through training and technical assistance.
  • Introduce a "special" line of credit for HIV/AIDS infected and affected groups working with Family Health International (FHI), Pathfinder's COPHIA project and Society of Women against AIDS in Kenya (SWAK).
Noteworthy Results
  • As at November 30, 2003, Ksh.8.09 million was, through direct lending, disbursed to 736 clients of whom 66% were women.
  • The average repayment rate for the last three years was 90%. Although the repayment rate is below the norm of 95%, it was deemed reasonable given the type of the project clients.
  • FAHIDA Project has amply demonstrated that there are beneficial links between HIV/AIDS support interventions and socio-economic survival of those infected and affected through micro-finance support that lead to positive living.
Lessons Learned
  • K-Rep is the only lending institution that does not ask for HIV status of its clients, and therefore the more preferred MFI by the infected.
  • All borrowers complain of the small loan size, short repayment intervals and short overall repayment period; all these arrangements are meant to make borrowing cheaper.
  • Youth require special training and sensitization before they take loans. Focus of lending should be on the youth that are married and have some business experience and business ventures.
  • To minimize burden on group members to bear the repayment of the loan of a member that has defaulted K-Rep should, in the next phase consider a possibility of introducing an internal loan insurance fund (LIF).
Focus Areas
Care and Support
Implemented By
K-Rep Development Agency
Participating Organization
Target Population
  • Adults (over 18)
  • People Living with HIV (PLWH)
500 - 1000
Implementation Years
01/2000 - 12/2008