A Research Dissertation Submitted in Partial Fulfillment of the Requirement for the Degree of Masters of Business Administration in Corporate Management (MBA-CM) of Mzumbe University.The focus of TANESCO is to create and keep customers; effectively addressing a complaint is really an opportunity to create a positive experience with customers... Resolving customer’s complaints makes for a better bottom line as the cost to replace a current customer can be 10 times the cost of keeping them. TANESCO have established various strategy for the purpose to gain advantage towards customers complains. The general objective of this study was to assess the impacts of customer complaints handling process on customer satisfaction. Specific objectives were: to identify challenges facing company’s staff on handling customer complaints, to identify customer’s perception on complaints handling process and to determine the relationship between customer satisfaction and the process of handling customers’ complaints. The study adopted a case study research design. The study population was divided into four groups that are Customers, TANESCO’s emergency telephone operators, Regional Customer Relation Officers (RCRO), Technical staff. A total of 84 customers, 12 telephone operators, 4 RCRO and 4 technical staff were used by researcher to assess the impacts of customer complaints handling process on customer satisfactions. The study used both probability and non-probability sampling methods, whereby in probability sampling stratified random sampling was applied and in non-probability sampling, convenience sampling was used. This study collected data from both primary and secondary sources. From the details which were provided by the respondents it has discovered that different initiatives have been implemented by the company so as to overcome the challenges facing the staff when dealing with the customers’ complaints. Among of the initiatives implemented by the company is the introduction of the modern service center.