Small and Medium Scale Enterprises are making a considerable contribution to the economic growth of many countries. Women have been empowered over the past years and most of them have embraced entrepreneurship by running their own micro enterprises. The application of financial literacy practices in SMEs is important to ensure solvency of these ventures since inadequate financial literacy has been faulted as the main reason for failure of many small enterprises especially during start up. There exists scant empirical literature on this study area. Along these lines, there was need to explore the relationship between inventory management literacy and solvency position of women micro entrepreneurs in Nakuru Town. Explanatory research design was employed and primary data was collected through stratified proportionate random sample from a targeted population of 187 registered women entrepreneurs using structured questionnaires. Data was analyzed through the use of descriptive and inferential statistics. The research findings indicated inventory management literacy has a positive significant relationship with solvency position of women micro entrepreneurs in Nakuru Town. The study recommends that women micro entrepreneurs should engage their suppliers to reduce cases of long lead time which may enhance inventory management and enhance the solvency position.