Most MSEs suffer from financial exclusion because they may not be able to access affordable and useful financial services to help them boost their businesses. The general objective of this study was to determine the effect of financial inclusion on performance of micro and small enterprises in Kisumu County, Kenya. Specific objectives of the study included to evaluate the effect of financial access, examine the effect of financial usage, determine the effect of financial products and investigate the influence of financial literacy training on performance of micro and small enterprises in Kisumu County. This study used theories which support independent variables that include; Grameen Model (main theory), Transaction Costs Theory and Financial Capital/Liquidity Theory. It adopted stratified random sampling technique Sample size of 375 MSEs was arrived at by use of the Krejcie and Morgan formula and table, picked from target population of 15000 MSEs. Self- administered structured questionnaires and interview schedules were used to collect primary data and the study adopted Descriptive survey research design. The research instrument’s reliability was tested by use of Cronbach’s Alpha and the coefficients were found to be above 0.7 which were accepted. Multiple linear regression model, Karl Pearson’s correlation and ANOVA were used in data analysis with the help of Statistical Package for Social Sciences (SPSS) Version 27. The findings revealed that; most MSEs could access small amounts of finances through their mobile phones easily, most financial providers required collateral before lending and charged very high interest rates, most MSEs don’t save their finances with Unit trusts and also incur very high transaction costs. The study recommendations included; banks and other financial institutions reduce their lending interest rates so as to be affordable to MSEs, MSEs be insured against risks, buy their own means of transport, government to be in the forefront to provide enabling environment to MSEs for better performance and MSEs to embrace use of modern technology in their transactions. Results revealed that financial literacy training doesn’t have significant effect on performance of MSEs. Further research be conducted on effect of innovation and performance of MSEs.The study revealed that financial access has highest effect on performance of MSEs as it was found to have p – value of 0.000 < 0.05. The study therefore concluded that financial inclusion has positive and significant effect on performance of Micro and Small Enterprises in Kisumu County.