This paper focuses on the experience of HIV/AIDS-affected households in terms of chronic and transient poverty and income mobility and poverty dynamics.3 Two other studies have explored poverty dynamics in HIV/AIDS-affected households with the aid of panel data or with a longer-term perspective using either expenditure and/or income data. Yamano and Jane (2002) report how the death of a prime age adult has caused non-farm income of Kenyan households to decline. Cogneau and Grimm (2003) employ a demo-economic micro-simulation model to simulate the impact of AIDS on the income distribution and levels of poverty in the Côte d’Ivoire over a fifteen-year period. They estimate that the labour supply effects of the HIV/AIDS epidemic (their model does not account for the effect of other impacts on income distribution and poverty) will leave average income per capita, income inequality and income poverty relatively unchanged, although they do emphasize that ‘AIDS kills more the poor, but rather the richest of the poor’.