Poor rural communities in sub-Saharan Africa have been affected most by HIV/AIDS pandemic. This paper analyzed the socio-economic impacts of HIV and AIDS on rural households, at different stages of disease progression, to determine economic impact of HIV/AIDS. The study was quasi-longitudinal assessing the impact of HIV and AIDS on economic status in Suba District. The study population were PLWHA who were registered for care at the local Health Centre. A sample of 200 HIV+ cases was randomly selected from patient support register.The findings showed that there was shortage of labor at household level due to drop out from work, and selling of assets in affected households as the disease progressed to more severe stages. Depletion of assets and savings to cope with increased expenditures in medical costs, food intake requirement as well as funeral costs was high in households with advanced stages of the disease. Key words: HIV, AIDS, stages, progressive, impac