Microcredit schemes have been implemented in various parts of Africa to support small businesses, particularly those owned by women living in informal settlements. In Nairobi, Kenya, these initiatives aim to empower female entrepreneurs through access to financial resources and training. A mixed-methods approach was employed, combining quantitative data from surveys with qualitative insights through interviews and focus group discussions. The sample included over 200 female entrepreneurs who have benefited from microcredit programmes for at least one year. Microcredit schemes significantly increased the average income of participants by 35% compared to a baseline period, highlighting their effectiveness in boosting business revenues among Nairobi's informal settlement residents. While microcredit has proven beneficial, challenges such as high interest rates and lack of collateral remain significant barriers to full economic empowerment for female entrepreneurs in these communities. Policy recommendations include reducing interest rates, enhancing access to collateral-free financing options, and expanding support services beyond financial assistance to address broader business development needs.