A Dissertation Submitted to Mzumbe University in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Science in Human Resources of Mzumbe UniversityThis study aimed to determine the challenges of managing employees’ records in HR and Administration Department at Musoma Municipal. The specific objectives were to determine the system used in keeping employees’ records in HR and Administration Department at MMC, to determine the effectiveness of the system used in keeping employees’ records in HR and Administration Department at MMC, to determine satisfaction of employees on the ways their records are kept in HR and Administration Department at MMC, to find out the qualities of employees’ records kept in HR and Administration Department at MMC, and to find out challenges encountered in managing employees records in HR and Administration Department at MMC. The study used a case study design whereby MMC (HR and Administration Department) was selected as a study case. Data were collected by questionnaire, interview, observation and documentary review. The sample had 45 respondents obtained through quota sampling, simple random sampling, and purposive sampling techniques. The study revealed that the challenges associated with management of employees records in HR and Administration Department at MMC include absence of electronic records keeping system, shortage of employees responsible for records keeping, shortage of trained personnel lack of capacity building for personnel, and low compliance with rules and regulations guiding records keeping. Also, the study revealed the following: manual file system is used in keeping employees’ records at MMC; to a large extent the system used in keeping employees’ records at MMC is effective; a certain extent the employees’ in HR and Administration Department at MMC are satisfied with the ways their records are kept; and to a large extent the records kept in HR and Administration Department at MMC have important qualities needed. Therefore, Local Government Authorities (LGAs), policy makers and planners should work hard to eliminate the challenges such that the records management can be more effective.