Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

Partner Description:

HOFOKAM is a microfinance institution founded by the Catholic Dioceses of Hoima, Fort Portal and Kasese in Western Uganda. Funding and technical support are provided by Catholic Relief Services. The institution was founded in 2003 through a merger of three Diocesan microfinance programs and incorporated as a company limited by a guarantee.

In February 2012, HOFOKAM’s legal status changed, and it became a company limited by shares. Today, it’s one of the oldest and largest microfinance institutions serving the rural poor in Western Uganda. It currently reaches over 20,000 clients organized into 1,149 village banks that cover 15 districts. Its portfolio exceeds US$4.7 million.

Recognizing that financial services aren’t the only tools for economic development and poverty alleviation, HOFOKAM has forged synergistic relationships with a number of socially driven organizations. This has expanded the institution’s reach and social impact, and has helped to shape its strategic approach and competitiveness.

These partnerships enable HOFOKAM to provide clients with new, innovative products and services. In addition to offering loans for agriculture and small business, it also provides education loans for children and adults, and housing and group loans for those who do not have collateral to mortgage. The 0% interest funding provided by Kiva lenders is helping the institution to grow these services.

HOFOKAM has partnered with Kiva since January 2010. With a strong anti-poverty focus, it works primarily in rural parts of Western Uganda and has distinguished itself by targeting very poor clients who require smaller loan sizes. HOFOKAM is proud to be the only microfinance institution in Uganda with headquarters in the countryside where it works. Kiva’s support is also helping the organization expand into the mountainous areas of the country, which are very remote and difficult to reach with financial services.

HOFOKAM’s Vision:

HOFOKAM aims to build economically empowered households in Uganda. It is pursuing this vision through its core values of honesty, trustworthiness, local empowerment, teamwork, stewardship, reliability, commitment to service and excellence.

Awards and honors:

Since its inception, HOFOKAM has received a number of honors from global organizations, including its major partners Catholic Relief Services, Citi Bank and Agri-Finance Marketplace. These awards acknowledge its financial, operational, institutional and social transparency:

     • 2011 Award for best financial services for individual farmers in Fort Portal from Agri-Finance Marketplace. 
     • 2011 Citi Microentrepreneurship Award for extraordinary support for micro-entrepreneurs in Uganda.
     • Pricing transparency award from Microfinance Transparency Organization to honor HOFOKAM for clearly communicating all prices and fees to clients.
A Note on HOFOKAM’s Portfolio Yield:
We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Field Partners. With Kiva's 0% capital, many of our Field Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.
For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.
We seek to support loans that don’t impose an unjustifiable cost burden on hardworking borrowers. We nevertheless recognize that in order to reach vulnerable and excluded people with high-impact products and services, some of our partners incur high costs that necessitate charging higher-than-average costs to borrowers in order to allow for sustainability and scale.
Factors that drive up the costs that this partner organization charges its borrowers include:

     • They operate in a market with high inflation—averaging 13% from 2011-2013, which means that the rates you see on Kiva are overstated, since loans are given in local currency, which lost value much more quickly than the U.S. dollar.
     • They provide very small loans. This leads to higher operating costs, since providing each individual loan presents a minimum per-unit cost.
     • They work in areas with very poor infrastructure, such as limited roads. This increases the costs of finding clients and maintaining branch offices.
     • They work extensively in rural areas, which requires their employees to engage in costly travel to find and serve their clients.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Feb 24, 2010 Oct 12, 2005
Total Loans $6,135,600 $643,637,600
Amount of raised Inactive loans $0 $905,700
Number of raised Inactive loans 0 796
Amount of Paying Back Loans $1,712,825 $125,634,350
Number of Paying Back Loans 2,143 138,485
Amount of Ended Loans $4,422,775 $517,097,550
Number of Ended Loans 6,620 648,022
Delinquency Rate 2.00% 4.74%
Amount in Arrears $21,025 $3,905,667
Outstanding Portfolio $1,051,905 $82,314,404
Number of loanDelinquent 112 15,674
Default Rate 1.07% 1.10%
Amount of Ended Loans Defaulted $47,264 $5,693,092
Amount of Ended Loans $4,422,775 $517,097,550
Number of Ended Loans Defaulted 178 17,486
Currency Exchange Loss Rate 0.03% 0.12%
Amount of Currency Exchange Loss $1,908 $783,507
Refund Rate 0.44% 0.72%
Amount of Refunded Loans $27,225 $4,605,450
Number of Refunded Loans 42 5,145

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 35.22% 74.17%
Average Loan Size $340 $418
Average Individual Loan Size $574 $655
Average Group Loan Size $2,053 $1,840
Average number of borrowers per group 13.5 8
Average GDP per capita (PPP) in local country $1,500 $3,405
Average Loan Size / GDP per capita (PPP) 22.65% 12.26%
Average Time to Fund a Loan 9.13 days 5.96 days
Average Dollars Raised Per Day Per Loan $37.21 $70.06
  Average Loan Term 8.96 months 10.58 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1,944 320,234
  Journaling Rate 25.39% 42.09%
  Average Number of Comments Per Journal 0.00 0.07
  Average Number of Recommendations Per Journal 0.00 1.73

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 57% PY 57.00% PY 33.35% PY
  Profitability (return on assets) 6.1% 4.5% -1.49%
  Average Loan Size (% of per capita income) 66.70% 61.00% 38.01%

Country Fast Facts

Field Partner Staff

Beth Akareut
Milly Atuhaire
Denis Azoora
Harriet Bigira
Komurubuga Brenda
Charles Isingoma
Titus Kaahwa
Harriet Kabataizibwa
Doreen Kanyiginya
Andrew Katusabe
Annet Kemigisa
Frank Kirungi
Test Kiva
Raymond Kwebiiha
Faridah Kwikiriza
Mbambu Moreen
Yosam Mumwoli
Ann Mwesigwa
Noeline Nakabugo
Onis Ngene
Stephen Thembo Mukobi
Ronald Tindyebwa
Robina Twooki