Mama Lishe makes one of the largest sources of employment for women in the informal sector. Like other women, they contribute significantly to the capacity of the male members of their households to function effectively in the labour force. Women undertake Mama Lishe activities so as to supplement household income to meet family needs, the income generated from women income generated activities in most cases is small, but it plays a significant role in buying clothes for babies and children, paying school fees and health care. This study was conducted to determine the contribution of Mama Lishe’s income to household poverty alleviation. Specifically, the study identified the nature of Mama Lishe activities in Morogoro Municipality, assessed the income generated from these activities and identified factors limiting these activities. The study was conducted in Morogoro Municipality; about 15 places where Mama Lishe carry their activities were selected. From each area six women were selected randomly (simple random sampling) for the study and hence 90 women were interviewed. Also more detailed information was obtained by interviewing selected key informants such as the Municipal Economist, Health Officer, Tax Officer, Trade Officers, Town Planners and Ward Executive Officers. Data were collected using structured questionnaire, Focused Group Discussions and by reviewing secondary data from several sources. Descriptive and multiple response statistics such as mean, frequencies and percentages were used. Qualitative data from Mama Lishe and key informants were summarized and reported. The findings indicate that 57.8% of respondents contributed between 3 000 – 4 000 Tshs and food from their business per day to the household, 22.2% of respondents contributed between 5 000 – 6 000 Tshs and food per day, 15.6% of respondents contributed between 1 000 – 2 000 Tshs and food per day, 1.1% of respondents contributed between 7 000 – 8 000 Tshs and food per day and 3.3% of respondents contributed food only from their business to the household. It was noted that Mama Lishe business has an important contribution to the household; the findings fromiii study shows the generated income from these business helps the household to buy and pay for their different needs such as food, clothes, school fees and other needs. Moreover the factors that hinder the performance of Mama Lishe businesses are lack of enough capital, business record keeping, lack of entrepreneurship skills and lack of business license. The study recommended improvement in the capacity of the women to run business by training Mama Lishe on the financial management, quality of the services they provide and business opportunity. Government should encourage Non-Governmental Organizations and micro-finance institutions to provide capital to these women with low interest rate.