KIDA operates the only SACCO (Savings and Credit Cooperative) in Uganda that targets the vulnerable AIDS affected population. Its goal is to empower the vulnerable.
Those who join KIDA’s AIDS CARE SACCO open a savings account first and receive training in saving and borrowing. They are required to save a small amount regularly.
The program is open to both HIV positive clients as well as to local community villagers who do not have HIV.
A member can apply for a loan not more than three times the value of that member’s savings balance. There are application requirements and repayment requirements.
Mr. Mugisa Deogratius is KIDA’s full-time microfinance manager. He has a diploma in Business Studies with an accounting specialty and completed a post-graduate program in microfinance in Uganda. He has taught economics and commerce at O level and A level.
KIDA’s AIDS CARE SACCO elects a board of directors and holds an annual meeting. The money belongs to the members. A committee approves loans.
Interest on loans is 1.5% a month, much less than other SACCO’s in Uganda. There is no profit-making goal, rather service and empowering the vulnerable. 97% of borrowers pay back on time. 3% are late but eventually repay.
Currently (May 2010) there are 491 savers and 268 borrowers. More members will move the program towards self-sufficiency. External support will be needed until then. Friends of Ruwenzori’s 2010 subsidy is $6,524 for salaries and loan fund enhancement.