Microfinance has been one of the strategies for poverty alleviation in developing countries. Following the success of the Grameen Bank in Bangladesh, the microfinance revolution has stormed the developing countries today. Although micro credit programmes in Malawi date from 1992, the proliferation of micro credit scheme or microfinance institutions began after the democratic process in 1994. Today, Malawi has several governmental and non-governmental organizations offering financial services to the poor. Most of these institutions operate localised and targeted programmes, and very few are operating at a national scale. Microfinance institutions in Malawi are largely unregulated and their programmes are not coordinated and accessibility to their services is not universal to the poor. With improvements in the policy environment, the Malawi Microfinance Network (MAMN) has been established as a formal association of microfinance institutions with the objective of developing, promoting, coordinating and regulating micro finance activities among member institutions. However, the financial performance of microfinance institutions and their impact on poverty reduction are not adequately documented and known in Malawi, although the increase in micro credit programmes has been remarkable. This paper attempts to take stock of the microfinance or micro credit revolution in Malawi including assessment of factors of success and failure in the delivery of financial services to the poor and the efficacy and effectiveness of the existing institutional framework on poverty reduction.