Abstract: The current thinking among managers of micro and small enterprises is on how to manage knowledge in a competitive business environment.Good performance, capped with some level of efficiency of these MSEs is what is desired from them to achieve a good and continuous economic growth. However, limited knowledge management skills hamper achievement of good performance of the MSEs. The study aimed at determining the relationship between knowledge creation and financial performance of micro and small enterprises, assessing the relationship between knowledge acquisition and financial performance of micro and small enterprises, and establishing the relationship between knowledge sharing and financial performance of micro and small enterprises. This study was anchored on Knowledge Based View Theory.