A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University, Dar es Salaam CampusThis study presents on determining the challenges facing revenue collection and its effects on service delivery particularly at Ilala Municipal Council in Dar es Salaam Region. Specifically, the study identifies procedures involved in revenue collection at Ilala Municipal Council; determine the level of involvement of stakeholders in revenue collection at Ilala Municipal Council; find out whether motivation affect revenue collection at Ilala Municipal Council; and determine whether accountability affect revenue collection at Ilala Municipal Council. However, the study covered by taking sample of 100 respondents. The study used case study design i.e. Ilala Municipal Council in which both qualitative and quantitative approaches of data elicitation were adopted. Data were collected using questionnaires, interviews and documentary review. Quantitative data were compiled and coded to allow statistical manipulations using mathematical models, frequency, tables and figures using Microsoft Excel. The result of this study indicates that during the interview on Education to revenue payers at Ilala Municipal Council, most of the respondents disagreed which implies that revenue players lacked enough education concerning revenue issues. Notably, some of the respondents disagreed on motivation to revenue Collectors which implies that revenue collectors were not satisfied with the incentive given to them and therefore demoralized the performance of revenue collectors.