It is without a doubt that Microfinance institutions promote economic growth by providing financial support to the poor in the society including women. It is for this reason that various governments in the developing economies including Kenya have put in place measures that help the MFIs to thrive albeit with mixed results. Notably, MFIs are instrumental advancing financial support to the low-incomers, women not exclusive. However, given that many MFIs have developed various financing strategies that ensure women borrowers access their services, the rate of over-indebtedness among women is noticeable. It is for this reason that this study intended to evaluate. The overall objective of the study was to evaluate the MFI factors influencing indebtedness status: case of businesswomen borrowers in Nairobi County. The following specific objectives were used; the study assessed the indebtedness status of women in Nairobi County; investigated the effect of MFI lending factors on the indebtedness status of women in Nairobi County; and examined the moderating effect of inflation rates on the relationship between MFI lending factors and the indebtedness status of women in Nairobi County. Both life cycle theory and the learning theory were used. The study adopted a mixed research design due to the use of both quantitative and qualitative data in the study. The target population of this study was the 407,455 women borrowers and managers of the 19 MFIs in Nairobi with a sample size of 399 and 19 respectively. The study used both structured questionnaire as main data collection tool and unstructured interview guide. By using Statistical Packages for Social Sciences (SPSS) version 24, data was analysed using descriptive statistics and regression model. Results were presented in tables, figures, mean, and standard deviation. The study found that borrowers’ personal factors had significant and positive relationship with the indebtedness status among women borrowers (β = 055; p-value = 0.038). This research also found that, that MFI lending factors had significant positive relationship with the indebtedness status among women borrowers (β= 0.017; p-value = 0.019). The study again found that, inflation rate had a positive significant connection with the indebtedness status among businesswomen borrowers in Nairobi County (β = 0.177, p-value = 0.002). Therefore, regression results resonate with the interview findings. The study concludes that, an increase in MFI lending factors by any unit could lead to an increased indebtedness status and vice versa. The research concluded that, a unit increase in the personal factors could increase indebtedness. It concludes that, an increase in inflation will lead to an increase in indebtedness status. The study recommends that, regular risk analysis and assessment for credit should be considered, preferably on a monthly or quarterly basis by the MFIs’ management because this is an ongoing process rather than a one-time exercise. It recommends that, the Consumer Federation of Kenya should be able to consider conducting awareness campaigns to teach women borrowers on planned investment and spending of borrowed credit. It also recommends that the government through the Treasury and other line ministries such as Trade, preferably policy makers should introduce legislative measures to streamline MFIs’ lending to safeguard women borrowers from unjust lending terms and conditions. In addition, it recommends that, every stakeholder in the MFIs sector including regulatory bodies and development agencies can perform an essential role in promoting financial and business literacy among women borrowers in line with their own area of specializations. Therefore, financial literacy training needs should be specifically connected to debt literacy to obtain the desired effect.