A Research Proposal Submitted in Partial/Fulfilment of the Requirements for Award of the Degree of Master of Science Accounting & Finance (MSc A&F) of Mzumbe University.Local Government Authorities collect revenue from different sources, external and own sources. The amount collected is used to provide social services such as water, education and health to the public. It is expected that if enough revenue will be collected more social services will be provided to the public. However, most of Tanzanian LGAs have not been able to collect enough revenue and therefore it has been difficult for them to carry out their activities effectively as expected. The purpose of this study was to examine challenges facing Tanzanian LGAs in revenue collection. Kiteto District Council was used as a study case to conduct the research. A sample of 80 individuals was employed from which data was collected whereby information was obtained by using questionnaires. The information collected was analysed by using SPSS. The findings indicated that Infrastructures, Community awareness and employee motivation affect revenue collections in LGAs. These findings made the government to consider putting more effort on planning, strategies and decision making process in order to bring about maximum result of their organisations. This study recommends that in order to improve revenue collection in local government authorities the following issues should be considered: reviewing the current policies on revenue collection especially to give more revenue sources to the LGAs, to improve management skills and effective management of human resources such as improving motivation schemes to LGAs employees.