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:

UGAFODE Microfinance Limited is a microfinance deposit taking institution regulated by the Bank of Uganda that provides a range of loan products -- with special focus on rural clients -- including business loans, group loans, micro-mortgage loans, agricultural loans and flexible housing loans. As of fall 2011, it had a loan portfolio of USD$2.9 million, nine branches, and about 5,300 active borrowers.

UGAFODE has a strong social focus, and tailors loan products to low-income and underserved clients. Four of its branches are located in rural areas 300 km from Kampala, and each branch works with clients within a 50 km radius. Funding from Kiva will allow UGAFODE to grow its innovative loan programs to better serve these individuals, like its agriculture and housing loans -- as well as green loans to help clients adopt sustainable business practices. 

Based in Kampala, UGAFODE has strong governance structures in place, with an experienced executive team and board members with backgrounds in banking, accounting, microfinance and law. Accordingly, it has been able to attract stable sources of funding from organizations like Opportunity InternationalOiko Credit, and Habitat for Humanity Uganda. The combination of seasoned leadership and solid funding has allowed the organization to post steady growth since its founding in 1994. 

The partnership with Kiva will help UGAFODE make an even greater impact on the lives of underserved and underbanked clients in western and central Uganda.

A Note on UGAFODE'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 provide more than just cash to many of their borrowers, including costly wraparound services such as healthcare, financial or business training, agricultural extension services, insurance or access to education.
  • They work in areas with very poor infrastructure, such as limited roads. This increases the costs of finding clients and maintaining branch offices.
  • They pay high interest rates on the loans they take from banks and other funders, given the market in which they operate. This means they need more support from innovative sources like Kiva to reduce costs and pass savings on to borrowers.
  • 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 Apr 25, 2012 Oct 12, 2005
Total Loans $10,242,925 $1,411,965,700
Amount of raised Inactive loans $499,975 $3,148,600
Number of raised Inactive loans 1 623
Amount of Paying Back Loans $1,919,125 $150,192,800
Number of Paying Back Loans 3,308 195,744
Amount of Ended Loans $7,823,825 $1,258,624,300
Number of Ended Loans 10,587 1,627,010
Delinquency Rate 25.44% 26.10%
Amount in Arrears $296,822 $24,507,566
Outstanding Portfolio $1,064,362 $93,911,247
Number of Loans Delinquent 2,549 131,420
Default Rate 0.71% 1.76%
Amount of Ended Loans Defaulted $55,720 $22,187,519
Number of Ended Loans Defaulted 174 53,814
Currency Exchange Loss Rate 0.54% 0.39%
Amount of Currency Exchange Loss $56,198 $5,484,508
Refund Rate 0.44% 0.63%
Amount of Refunded Loans $44,725 $8,892,600
Number of Refunded Loans 41 8,400

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 38.89% 76.46%
Average Loan Size $442 $394
Average Individual Loan Size $643 $611
Average Group Loan Size $1,458 $1,762
Average number of borrowers per group 6.7 7.8
Average GDP per capita (PPP) in local country $1,800 $5,743
Average Loan Size / GDP per capita (PPP) 24.56% 6.86%
Average Time to Fund a Loan 12.38 days 7.19 days
Average Dollars Raised Per Day Per Loan $35.73 $54.80
  Average Loan Term 10.68 months 11.38 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 5,950 869,325
  Journaling Rate 46.94% 43.35%
  Average Number of Comments Per Journal 0.00 0.03
  Average Number of Recommendations Per Journal 0.00 0.74

Borrowing Cost Comparison (based on 2016 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 51% PY 57.00% PY 25.90% PY
  Profitability (return on assets) 1.2% 4.5% -2.02%
  Average Loan Size (% of per capita income) 162.00% 61.00% 12.51%

Country Fast Facts

Field Partner Staff

Ivan Abaasa
Sharon Akakimpa
Immaculate Atuhairwe
peter katende
Abubaker Kibira
Joseph Mizingu
Jonathan Mugalu
Charity Mugume
Stephen Mugume
Julius Mujuni
Pius Mukiibi
Susan Nakafeero
Violet Nalikka
Shafi Nambobi
Allen Nandyose
Samuel Pepela
Richard Sempala
Edwin Wamimbi