Abstract 

The study was conducted to establish and document the contribution of microfinance to the economic empowerment of women by taking the case of Lira Municipality. The study particularly sought to establish and recommend the kind of proactive gender policy in microfinance institutions that can enhance the economic empowerment of the women. The study was conducted through a cross sectional research design examining the small scale enterprise at a given time. The study established that there is considerate level of access to micro finance facilities in Lira Municipality. However, there is no proactive gender policy across the institutions and none of the institutions primarily targets the women. The study concludes that microfinance is a major tool in the economic empowerment of the women. It recommends that institutions and government should initiate and pursue a proactive gender policy in extending microfinance facilitie