A Research Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Science in Procurement and Supply Chain Management (MSc-PSCM) of Mzumbe University.The study was about the investigating the challenges facing the implementation of Supplier Relationship Management to Financial Institutions, the case was NBC LTD. Basic objectives of this research were to find out how procurement specialists hinder/ help on implementation of SRM, assess how supplier/service provider contribute to poor SRM practices and to identify measures to be taken to stabilizing relationship with suppliers/service providers The study was significance to stake holder, NBC LTD and the researcher. It covered various limitations such as the shortage of research time compared to extensiveness of activities that needed to be undertaken in order to ensure coverage of sufficient number of respondents, lack logistical and human resources to support data collection as part of the study. Various literature reviewed about the study has been to understand what others have written about the challenges on implementation of SRM. Data were collected through the use of interview, questionnaires and the sample size was 23 staffs and the data was analyzed by using the tables and the histogram chat. Findings shows that the implementation of SRM are much blocked due to the poor cooperation among members of NBC LTD, lack of sourcing knowledge to Supplier Relationship Managers and failure to comply with sourcing governance to most of the suppliers as well as lack of support and accountability from top management. The study recommends that in order for the Supplier Relationship Management to be much advantaged to NBC LTD, expanding the supplier base, develop the systematic capabilities of SRM and institutionalize the SRM should be taken into consideration.