The overall aim of this study was to investigate the financial literacy skills of women entrepreneurs and establish their role in women's economic empowerment. The study's objectives were: (1) To determine the financial literacy skills of women entrepreneurs in Kenya; (2) To determine the level of economic empowerment of women entrepreneurs. (3) To determine the relationship between financial literacy and women's economic empowerment and (4) To suggest a model for the enhancement of the financial literacy skills of women entrepreneurs in Kenya. We used pragmatic research paradigm by Positivist/postpositivist and constructivist approach. Mixed research enabled the use of both quantitative and qualitative research methodologies by survey research design. Purposive sampling was used to select 105 women’s groups who had obtained loans from the Uwezo Fund in Chuka Constituency in the financial year 2013/2014. Both random and stratified sampling technique was applied to select the women entrepreneurs who formed the sample. Detailed questionnaires with both structured and open-ended questions were used to collect data. Research findings confirm that financial literacy skills are a major factor in women's economic empowerment. Women entrepreneurs acquire financial literacy skills through social constructionism. Lack of financial literacy skills is hindering women entrepreneurs from becoming economically empowered. A willingness to invest in a risky business venture 239 (62.57%), lack of basic numeric skills 237 (61.88%), and taking loans without considering the cost 88 (71.42%) is undermining women’s economic empowerment. This study proposes that regular assessment of women entrepreneurs’ financial literacy skills be carried out and tailor-made training courses to fulfil these needs be introduced. Priority should be given to topics such as computing, loans, reading and understanding bank statements, budgeting, spending, saving and investing in business ventures. To increase the number of women entrepreneurs included in formal financial services, financial institutions should offer women financial products that suit them.