Abstract: The performances of small and medium enterprises
have stagnated in the last two decades. This has mainly been due to
the emergence of HIV / Aids. The disease has had a detrimental
effect on the general economy of the country leading to morbidity
and mortality of the Kenyan workforce in their primary age. The
present study sought to establish the economic impact of HIV / Aids
on the micro-enterprise development in Obunga slum – Kisumu, in
terms of production loss, increasing labor related cost and to establish
possible strategies to address the impact of HIV / Aids on microenterprises.
The study was necessitated by the observation that most
micro-enterprises in the slum are facing severe economic and social
crisis due to the impact of HIV / Aids, they get depleted and close
down within a short time due to death of skilled and experience
workforce. The study was carried out between June 2008 and June
2009 in Obunga slum. Data was subjected to computer aided
statistical analysis that included descriptive statistic, chi-squared and
ANOVA techniques. Chi-squared analysis on the micro-enterprise
owners opinion on the impact of HIV / Aids on depletion of microenterprise
compared to other diseases indicated high levels of the
negative effects of the disease at significance levels of P