Purpose: This paper aims to analyze the impact of microfinance on the income and employment of women participants in Jigjig city. Design/Methodology/Approach: A survey of 146 active clients of the Somali Microfinance and Ray Microfinance in Jigjiga, Somali Regional State (Ethiopia), has been undertaken for this purpose. Statistical and econometric techniques are used to explore the impact of microfinance. Findings: It is found that microfinance credit positively affects income generation and

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... loyment level of women, and the impact on productive activities is higher, and it increases the income of women participants. Practical Implications: It concluded from the study that to maximize the benefits of MFIs, MFIs should develop a different approaching mechanism to deliver their services and products at large for the poorest of the poor, like having an appropriate selection mechanism of the poor in the scheme that emphasize women, less educated and rural poor people and it is advisable to have innovative product and service together with the formulation of enabling regulation. Originality/Value: To the best of the authors' knowledge, no other paper attempted to study the impact of microfinance on women participants' income and employment in Jigjig city. This study will provide an opportunity for the policymaker to focus more on microcredit to help women for their upliftment.