The main purpose of this study was to determine the contribution of microfinance on the growth of micro enterprises in Mwanza city. The research was guided by four specific objectives that are: To examine credit access among micro enterprises in Mwanza city from PRIDE Tanzania, to find out whether clients are satisfied with services provided by PRIDE Tanzania in Mwanza city, to explore the perceived contribution of Microfinance to the growth of Microenterprises in Mwanza city, and to determine the challenges facing MEs on effective utilization of credit provided by PRIDE Tanzania in Mwanza city. A descriptive research design was used to conduct this study. The population consisted of 3500 PRIDE Tanzania MEs who have benefited from PRIDE Tanzania. A formula was used to determine sample of 358 loan beneficiaries. Primary data was collected by using structured questionnaires. Data was analyzed by using SPSS. The research findings on the policy and regulatory framework revealed that legal environment was generally hostile to SMEs. The finding on implementation strategies revealed that, the loan repayment period was short. The findings on the contribution of MEs also revealed that most beneficiaries under the study had expanded their businesses and increased their household income. The researcher recommends that the membership fee should be reduced so as to incorporate the very poor into the system. This will enable them to get access to the products and services that those just below / or just above the poverty line enjoy. The mode of repayment should be revised so that the poorest can borrow without collateral. The suggested areas for further research as regards to interest rates include the review of interest rates by MFI to cater for operating expenses of microfinance and at the same time facilitate growth for their clients businesses. Also, there is a need to conduct a comprehensive study for setting the repayment system that will be favorable to MEs by considering the grace period.