The topic of the study was to establish the effect of Micro Credit on Gender Equality in Uganda, a case study in Lira Municipal Council. The objectives of the study were; to examine the Nature of micro credit to gender equality, to establish the level of gender equality and to analyze the relationship the relationship between microcredit and gender equality in Lira Municipal. The major sources of data were from both primary and secondary sources and the instrument of data collection were interview guides questiotU1aires. Data was analyzed tlu·ough the use of frequency table and percentages. The findings revealed that majority of the people have access to micro credit and that they use it to expand their businesses. The finding further showed that micro credit has played a major role in the livelihood of women and men in Uganda. The finding further showed that there is a significant relationship between micro credit and gender equality. The study recommends human capital development of rural women so as to improve more access and financial infom1ation flows improvement of the life and affirmative action policy, improvement ofMFis Joan threshold and concentration ofMFis on saving mobilization.