Microfinance is a means of providing a variety of financial services to the poor, based on market-driven and commercial approaches. Recently, the term ‘microfinance’ has become a global buzz word and it appears in the formulation of policies geared towards welfare programmes by governments. Tanzania also recognises that microfinance institutions and programmes are critical to economic development. This study sought to assess the effectiveness of the microfinance approach on poverty alleviation among women in Kinondoni District in Dar es salaam, Tanzania. The two theories that formed the philosophical foundation for this undertaking were: Credit Access Theory propagated by Stiglitz and Weiss (1981), and Grameen Bank Model developed by Nobel Prize laureate, Mohammed Yunus (1993). The researcher used a descriptive survey design targeting 4010 women members of microfinance institutions. A sample size of 351 was acquired using the Fisher, Laing and Stoeckel (1983) formula. A set of questionnaires was developed and administered to the respondents. On the basis of the findings, the study concluded that access to credit services, capacity building, and mobilisation of savings affects positively poverty alleviation in Kinondoni District Dar es salaam, Tanzania. This is through trainings and seminars, financial services and products provided by microfinance institutions. The study recommended that financial institutions should ease the procedure of requirements for accessing loans, and microfinance institutions should continue providing capacity building to the borrowers and mobilising women into saving despite their levels of income. The researcher further recommended further research on a similar study on other districts of Dar es Salaam. The study recommends further research on the effectiveness of microfinance institutions in ensuring the credit services provided are used for the intended purposes. Key terms: Microfinance, Approach, Poverty Alleviation, Women