This study was conducted in Wajir County to examine the impact of microfmance institutions on women empowerment. The objectives of the study were to examine the impact of microfmance on women's incomes, to fmd out other economic benefits of microfinance to women and to identify the challenges hindering microfinance as a tool ofwomen empowerment. A review of relevant literature was done and compared with the study fmdings.  The study was descriptive and cross-sectional in design and the researcher employed qualitative an~ quantitative approaches for data analysis. The study noted that microfmance improves women's income levels. It also noted a number of benefits which women benefit from participation in microfinance programmes which are improved confidence to daim for political and legal rights, ir.creased decision making power, reduced domestic violence and workload, more participation in politics, and increased asset ownership rights among others. However, the study revealed that although microfmance has been successful in empowering women; it is still hindered by many hindrances. The study concluded that microfinance institutions play a major role in the empowerment through improving women's income.