masters thesisThis study aimed to examine the contribution of microfinance institutions on poverty reduction among rural women taking in Nyamagana district as a case study. Specifically, the study intended to examine the extent of women empowerment through MFIs in household’s level. To assess the impact of MFIs on the member’s socio – economic development to identify obstacles and challenges exist for women in gaining empowerment through MFIs, and assess perception of the members on the microfinance institutions’ contribution to poverty reduction. The research design adopted was a cross-sectional descriptive survey and a sample size of 60 respondents (mainly client’s women members), others were government officials and loan officers were selected. The selection techniques of MFIs members used were purposive sampling and simple randomly sampling. Data was analyzed using both quantitative and qualitative methods. There is a general agreement among the members interviewed that these MFIs have positive impacts on their socio-economic development among women. The results show that it helps to meet consumption needs, pay school fees, run small businesses, increase and diversify the income and the majority also believes that it can be a useful tool for poverty reduction. It is hereby, recommended that, the government should continue with its effort to improve the infrastructures as a means to support women economic empowerment, through MFIs, in engaging in poverty alleviation among women. The government and other stakeholders are also requested to provide capacity building programmes to women – members in MFIs through training and seminars in order to empower them.