A Dissertation Submitted to the Faculty of Social Sciences in Partial Fulfillment of the Requirements for the Degree of Master of Art in Education (MAED) of the Mzumbe UniversityThis study examined how Adult and Non-Formal Education centres are financed in Tunduru District Council in Tanzania. Objectives of this study were to examine sources of funds, to explore the methods of allocating funds, and to examine the challenges of fund allocation for ANFE centres. 5 wards and 49 participants were involved in the study. The study employed qualitative approach and applied case study design. Participants were selected using purposive and convenience non-probability sampling techniques. Data were collected using interview, focus group discussion and review of documents. Content analysis technique was applied in analysing data gathered from the field. Findings indicate that financing ANFE centres in Tunduru DC was mostly done by the adult learners’ themselves through their contributions from individual income generating projects, individual and local volunteers with very little support from the government. The research revealed that there were no proper methods of fund allocation for ANFE centres because the government disburses very low and irregular funds to run these centres; and most of the little funds supported depends on programme-based from the donors and local volunteers. Again, the study uncovered ANFE centres face with multiple challenges including underfunding; dependency in untrained and lowly paid or not paid at all adult facilitators’ honoraria, poor teaching-learning environment, acute shortage of qualified adult education facilitators, and lack of motivations among teachers, and adult education learners. Several recommendations are made specifically for financing ANFE centres.