ABSTRACT Since its establishment in 2001 in Tanzania, VSLAs have improved access to financial services. Despite the improved access, a knowledge gap existed in explaining whether the stated improved access to financial services is associated with the governance of VSLAs and whether VSLAs lead to improved household livelihood. This study, therefore, had the overall objective of investigating the contribution of VSLAs’ in improving access to financial services and household livelihood in Igombe and Nyamilolelwa Villages in Mwanza Region. Purposive sampling procedure was used to obtain a sample of 48 respondents comprised of VSLA members and staff of Care International. Observations and documentary review complemented the data collection methods. The SPSS Version package was used in data analysis where Chi-Square Test, frequencies and percentages were applied. Findings revealed that the VSLAs have contributed a lot towards improving access to financial services and for those who accessed financial services have improved their household livelihood. The policy implies that since VSLAs are very much liked and supported by the rural mass, the government of Tanzania should create a policy to support and use this model to complement the efforts of SACCOs in ensuring access to financial services for the rural people where banks and MFIs have not been able to reach due to associated costs. This will enable VSLA activities to have a wide range of serving its target communities countrywide.