The study aimed at the effect of microfinance institutions on the socio-economic development of communities in Uganda and it was guided by the following objectives; To identify microcredits offered by microfinance institutions, to evaluate the impact of non-financial advises of microfinance institutions on socio economic development of Kasubi market and to examine the impact of high interest rates imposed by microfinance institutions on the social economic development of Kasubi Market. The study used a correlational survey design and a cross-sectional research strategy in order to help determine the link between the key study variables. From the findings, 53 (38%) respondents agreed that company earnings affect the price shareholders are prepared to pay, while 10 (7%) disapproved, 4 (3%) disapproved, and 4 (3%) severely disagreed. According to the study's findings, 87 people (63%) strongly agreed that high interest rates increase annual payments, 35 people (25%) agreed, 14 people (10%) neither supported nor disapproved, and 2 people (1.5%) disapproved. The study recommends that microfinance institutions should provide minimal interest rates to the market vendors. This minimal interest rate will make the vendors utilize the loans provided by the microfinance institutions. The study further recommends that microfinance institutions should aim at providing educational services to the borrowers before borrowing.