The study sought to investigate the role of microfinance in enhancing performance of Small & Medium Enterprises (SMEs)within Eldoret central business district. The objective was to examine the role of microfinance services in enhancing SMEs' performance. The findings established that most entrepreneurs agreed that they had access to microfinance institutions and that this has helped them to increase their income which has lead to improved living standards. The study also established that for effective use of micro financing in enhancing performance of SME, training on financial management and provision of facilities to SME operators should be implemented by concerned stakeholders. The findings of the study will therefore be very useful in driving the microfinance industry in Kenya towards the realization of the National Development Plan (Vision 2030).