A Research Report Submitted in Partial Fulfillmentt of the Requirements for the Degree of Master of Science in Procurement and Supply Chain Management (MSc. .PSCM) of Mzumbe University.The study aim to assess challenges affecting the implementation of Electronic procurement (e-procurement) in public procurement entities, the Temeke Regional Referral Hospital is a case of study. The specific objectives were, to evaluate the effect of availability of Information communication technology ( ICT) infrastructure on the adoption of e-procurement, to assess the effect of staff competence on the adoption of e-procurement, to investigate the effect of financial resource availability on the adoption of e-procurement and to find out the effect of the existing procurement, legal and regulatory framework for adoption of e-procurement. The Study used the survey approach compilation of data and questionnaires were the major data collection instrument.. The sample of 52 respondents was purposely chosen from 93 of the selected Department/Sections of the Temeke Regional Referral Hospital, of which 46 responses were received and analyzed. The analysis of data Durbin-Watson Statistics and r-square analysis was used to check the data obtained was suitable for multiple regression analysis.The results obtained depict that non existence of autocorrection and multicorrelianity as values of Durbin-Watson is around 2 and R-squared is below 90% respectively. The finding reveals that ICT infrastructure and Procurement, Legal and Regulatory framework are positively associated with compliance with e-procurement adoption. Whereas, Finacincial Resource availability and Staff Competency are not significantly correlated with e-procurement adoption, therefore, tend to be challenging for the implementation of e-procurement acceptance. The recommendations were ICT infrastructure, staff training and funding for eprocurement adoption should be given high priority. Likewise, staff recruitment and positioning of employees should be on the basis of individual competencies. For Policy and decision makers, make e-procurement adoption should be mandatory in all public institutions in Tanzania so as to cope with the changing business and political environment