Tanzanian's Poverty Reduction Strategy (PRS) focuses among other efforts at reduce n Income poverty, improving human capabilities , survival and social well-being and containing extreme vulnerability among the poor. In this context access of households and firms to physical and financial resources is extremely crucial. For the majority of Tanzanians ho are poor, without access to formal financial institutions, access to micro finance services is a viable alternative in an attempt to reduce poverty. Micro Finance Institutions (MFis) offer the poor, the possibility of managing scarce resources more efficiently and taking advantage of investment opportunities for economic returns. Access to finance services may contribute to increased income generation and thus ach involvement of higher standards of living at household levels wh1le at enterprise levels 1t can fac1htate the pursuit of mc me and firms growth. The operations of MFis need therefore to have greater. Outreach particularly where the .Poor are concentrated, i.e. in the rural settings. At the same time services ought to be sustainable in order to have impact on poverty alleviation.