Despite their fundamental socio-economic responsibilities, rural women still have less access to knowledge, assets, services and participation in decision-making. These inequalities affect their ability to carry out critical roles in their communities leading to rural poverty. In Kenya, women groups form the majority of local initiatives. Although women groups are the solution to the local problems, there is little support they receive from the government and other development stakeholders, hence their inability to address rural problems. Besides, there are limited studies particularly in Kenya on women groups' contribution to rural development. This paper is a portion of the outcome of an empirical descriptive study conducted in Nyamusi Division in Nyamira County by the authors. The sample was drawn from ten registered women groups and fifteen informal women groups in the study area. The unit of analysis was a women group. This paper critically examines the relationship that exist between rural community-based approaches (in this case-women groups) and rural development. It also looks at the barriers that hamper women's development efforts in community interventions. This paper concludes that if given opportunity, women have the potential to change their own socio-economic status as well as that of the communities in which they live in for the reason that women groups act as an effective instrument for rural development. Once women groups have sufficient solidarity, experience and unity of purpose in their undertakings, rural development is achieved. This paper recommends policy frameworks that not only promote community-based approaches for rural development, but also encourage sustainability and equal participation of all genders in development.