Education is the process of imparting or acquiring knowledge and skills useful in the development of powers for reasoning and judgment. It contributes to development directly because of its relevance to the well-being and freedom of people and indirectly through influencing social change and economic production. This study sought to examine the contribution of secondary education knowledge and skills in enhancing self-employment in informal sectors among graduates residing in Mvomero District of Tanzania. Quantitative methods were used to collect data in which stratified sampling was done to obtain 400 participants, including both primary and secondary education graduates working in informal sectors as entrepreneurs and peasants. This was followed by systematic sampling to select participants from each stratum. The self administered structured questionnaire was used to elicit opinions on the impact of skills and knowledge acquired at school in poverty reduction. The data were analyzed using Mann Whitney U test and the results showed that secondary education has a potential in poverty reduction as the knowledge and skills acquired by graduates during schooling were helpful in managing and opting for a payable economic activity.