Aims: This study sought to assess the moderating effect of financial literacy on the relationship between micro-credit orientation and investment efficiency of Small and Medium Enterprises (SMEs) in Kericho County, Kenya. Specifically, it examined how micro-credit accessibility, utilization, and conditions influence investment efficiency, and whether financial literacy alters these relationships. Study Design: The study adopted an explanatory research design to explore causal relationships among the variables. Place and Duration of Study: The research was conducted in Kericho County, Kenya, covering all five sub-counties, between May and December 2024. Methodology: The study targeted all 5,813 registered SMEs in Kericho County. Using stratified random sampling, 385 SMEs were selected for the sample. Data was collected through structured questionnaires administered to SME management. Reliability was confirmed using a Cronbach’s alpha threshold of 0.7. Data analysis was carried out using SPSS version 26. Descriptive statistics (means, frequencies, standard deviations) and inferential techniques, including Pearson’s correlation and multiple regression analysis, were employed. Results: Microcredit accessibility (β=-0.028, p=0.001), utilization (β=0.209, p=0.000), and conditions (β=0.800, p=0.000) significantly affected investment efficiency. Financial literacy significantly moderated the relationship between microcredit accessibility (ΔR²=0.246, p=0.011) and conditions (ΔR²=0.045, p=0.000) with investment efficiency, but not utilization (ΔR²=0.316, p=0.177). The moderated model explained 89.8% of variance (R²=0.898). Conclusion: Microcredit orientation components significantly influence SME investment efficiency, with financial literacy enhancing accessibility and conditions’ effects. Equipping SME owners with financial skills is crucial for improving decision-making and resource utilization, supporting sustainable economic growth.