Leadership empowerment practices is an important area which is considered and implemented in organizations to increase human capability and some other benefits like to gain competitive advantage. Poor performance of microfinance institutions has become an issue in Africa and majority of these institutions are beginning to embrace corporate governance on their strategic management plans so as to enhance their sustainability. Leadership empowerment is deemed instrumental in strengthening performance and sustainability of microfinance institutions (MFIs) as well as increasing outreach of microfinance (Garson, 2010). This study sought to investigate the influence of leadership empowerment practices on the performance of microfinance institutions. The study objective was to examine the influence of leadership empowerment as a leadership empowerment practice on the performance of microfinance institutions in Kenya. The study hypothesis was that there is no significant influence of empowerment as a leadership empowerment practice on the performance of microfinance institutions in Kenya. The study targeted the chief executive officers and senior officers of the microfinance institutions. The results of this research indicated that leadership empowerment had an influence on performance of microfinance institutions in Kenya. There is also need to empower workers with necessary resources, adequate supervision, ample opportunity, fair treatment, well stipulated rules, opportunities for career empowerment and promotion, informed on the strategic plan of the microfinance.