Dissertation (MA Development Studies)The study aimed to examine the relationship between microfinance institutions and women economic empowerment in Tanzania. The study had the following objectives. First is to examine the types of financial services offered by MFIs to empower women economically. The second is to examine the contributions of MFIs on empowering women. The third is to assess the women perceptions towards MFIs and finally to suggest appropriate strategies to increase the outreach of MFIs so as to empower women economically. The study involved a sample size of 100 respondents from women entrepreneurs who provided their opinions on the study theme. The study employed cross-sectional survey research method and used questionnaires, interviews, and documentary review in data collection. Both qualitative and quantitative techniques were applied in data analysis. Based on the study objectives, the study findings have revealed that MFIs provide various financial services including loans, credits, money transfers and insurance that have improved their livelihood standards. But it was seen that majority of women entrepreneurs (91%) prefer short and medium term loans to venture for their business rather than long term loans. In addition to that, majority of women entrepreneurs (74%) had positive perceptions on MFIs as they claimed that no doubt MFIs have helped to positively empower them economically by advancing loans that enabled them to enter into business ventures and boost their livelihood standards. Finally it was concluded that lowering interest rates, lengthening loan repayment duration, on job training, reconsider collateral and increase outreach services as measures to increase MFIs capacity to empower women economically. The study recommends that MFIs should lower interest rates, provide training before granting loans and work hand in hand with the government to real empower the women economically.