Ngala, Consolata O.Ong’anyi, P.2019-05-212019-05-212016-122334-2390http://erepository.kibu.ac.ke/handle/123456789/1078Micro financing has been taken as panacea in disaster mitigation. In helping poor and AIDS affected households come out of poverty in Kakamega County, Kenya, microfinance institutions (MFIs) use group lending model. This model enables MFIs to secure their loans through joint liability using coercion and group pressure. The effect of this approach remains unknown particularly on households dissipated by AIDS pandemic. To find out the challenges and opportunities experienced by MFIs and their AIDS affected clients, cross-sectional survey design was used. A total of 205 AIDS affected clients were surveyed and data analyzed descriptively. The study found that micro financing is a major instrument for asset rebuilding in AIDS disaster situations. However, the sub-sector lacks infrastructure and policy to guide its operations. Consequently, high interest rates, loan defaulting and hawking among other challenges abound. Creation of enabling environment including clear policy is significant for this critical sub-sector in Kenya.enAttribution-NonCommercial-ShareAlike 3.0 United Stateshttp://creativecommons.org/licenses/by-nc-sa/3.0/us/MicrofinanceGroup Lending ModelAIDS Affected HouseholdsOpportunitiesChallengesArticle