Integrating gender issues and concerns in the development projects has potential impact on project success. This paper analyzes the gendered differentials and impacts on smallholder farmers engaged in rice and sisal value chains in the lake zone, Tanzania. The study adopted a qualitative approach whereby documentary review, Key Informant Interviews (KIIs) and Focused Group Discussions (FGDs) were the main methods for data collection. Data were analyzed using ethnographic content analysis with constant comparisons techniques. It was found that the patriarchal system has strong impact and influence on the livelihood choices, ownership and use of household and community resource’s including land, and assets for production and processing of crops is skewed towards men. Men’s attitudes towards women participation in benefit sharing of the livelihood outcomes hamper women empowerment efforts. It is concluded that women get less benefits in the value chains engagements due to poor access to and control of productive resources and benefits, women economic empowerment has increased with increased workloads, the transformation of the empowerment outcome obtained in group levels is compromised by the rigid structure of the household institutions, changes in power relations at household levels have potential to improve household wellbeing but may also increases intra - household conflicts. It is recommended to the local government authorities and development practitioners and NGOs to: device gender sensitive strategic efforts to transform gender relations at household and community levels and support women with more entrepreneurship education.