The major objective of this study lied in finding out whether there was a relationship between micro finance institutions and Household income of people in Kisoro Municipality, Kisoro District. Other objectives included: To establish the level of performance of Microfinance institutions in Kisoro Municipality and to find out the extent of Household income earning in Kisoro Municipality, Kisoro District. The study adopted a triangulation of a case study design and a cross-sectional survey design, also the study employed both qualitative and quantitative techniques to analyze data. Simple random probability sampling and purposive sampling techniques were used to obtain appropriate respondents for the study. Questionnaires and interview guides were used to collect data from respondents about the relationship between micro finance institutions and Household income of people in Kisoro Municipality, Kisoro District, and the researcher considered 50 Micro finance owners, 100 businessmen (business owners) in Kisoro Municipality, 223 community members and LC 5 chairman of Kisoro district and Kisoro Municipal Town Clerk. Data was analyzed by use of Microsoft excel and presented in form of frequency distribution tables and pie chart. SPSS Software was also used to analyze data in the study. The researcher found out that there is a very strong positive relationship between micro finance institutions and Household income of people in Kisoro Municipality, Kisoro District at r = 0.775 and since the sig. value (.000) was far less than 0.01, which is the maximum level of significance required declaring a significant relationship between micro finance institutions and Household income of people in Kisoro Municipality, Kisoro District, this implies that the level of micro finance institutions development greatly affects the level of Household income of people. The findings revealed that 55% of the respondents suggested that the level of performance of microfinance institutions in Kisoro municipality is very high, 30% of the respondents noted high level, and 10% revealed low level and the remaining 5% of the respondents noted very low level. The researcher recommended the government to provide financial support in form of loans in order to boost their service delivery. The researcher recommended MFIs to provide financial services to the people at affordable interest rates. The researcher further recommended the parents to get involved in income earning activities so that they can improve their house hold income.