Status Update -August 2, 2023

For the last 3 years, Kiva has been working with HOFOKAM to try to recover the remaining outstanding amounts due to Kiva lenders. Kiva and HOFOKAM had agreed upon a payment plan in June 2021 of $440,427.47, and which HOFOKAM has fully paid the loan amount as agreed in the repayment agreement. However, Kiva and HOFOKAM have decided to default a total of $60,094.77, having determined that these borrowers don't have the ability to repay their remaining installments at this time, and the partnership is now closed.


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.


Repayment Performance on Kiva

    This Lending Partner All Kiva Partners
  Start Date On Kiva Feb 24, 2010 Oct 12, 2005
Total Loans $15,151,100 $1,960,970,195
Amount of raised Inactive loans $0 $385,125
Number of raised Inactive loans 0 245
Amount of Paying Back Loans $0 $155,006,285
Number of Paying Back Loans 0 179,895
Amount of Ended Loans $15,151,100 $1,775,538,270
Number of Ended Loans 22,825 2,382,292
Delinquency Rate 0.00% 11.53%
Amount in Arrears $0 $10,730,796
Outstanding Portfolio $0 $93,051,115
Number of Loans Delinquent 0 45,519
Default Rate 0.95% 1.82%
Amount of Ended Loans Defaulted $144,334 $32,353,228
Number of Ended Loans Defaulted 2,269 84,927
Currency Exchange Loss Rate 0.60% 0.49%
Amount of Currency Exchange Loss $103,893 $12,023,738
Refund Rate 0.78% 0.54%
Amount of Refunded Loans $118,450 $10,526,300
Number of Refunded Loans 168 9,596

Loan Characteristics On Kiva

    This Lending Partner All Kiva Partners
  Loans to Women Borrowers 36.15% 78.24%
Average Loan Size $315 $392
Average Individual Loan Size $544 $589
Average Group Loan Size $1,862 $1,892
Average number of borrowers per group 13.2 8.3
Average GDP per capita (PPP) in local country $1,800 $5,599
Average Loan Size / GDP per capita (PPP) 17.53% 7.00%
Average Time to Fund a Loan 10.73 days 8.93 days
Average Dollars Raised Per Day Per Loan $29.39 $43.86
  Average Loan Term 9.66 months 11.47 months

Journaling Performance on Kiva

    This Lending Partner All Kiva Partners
  Total Journals 6,093 1,181,539
  Journaling Rate 23.88% 42.25%
  Average Number of Comments Per Journal 0.00 0.02
  Average Number of Recommendations Per Journal 0.00 0.57

Borrowing Cost Comparison (based on 2016 data)

    This Lending Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 47% PY 57.00% PY 27.02% PY
  Profitability (return on assets) -6.66% 4.5% -3.10%
  Average Loan Size (% of per capita income) N/A 61.00% 0.00%

Country Fast Facts

Lending Partner Staff