A Dissertation Submitted to Dar es Salaam Campus College in Partial Fulfilment of Master of Science in Accounting and Finance of Mzumbe University, Dar es Salaam Campus CollegeThe purpose of this study was outsourcing source of revenue collection by Local government Authority; the case of Kinondoni Municipal Council. The study was guided by both general and specific objectives. The general objective was to assess whether the outsourcing sources of revenue collection establish a platform for more effective and efficient revenue collection in Kinondoni Municipal Council. Specific objectives addressed the following aspect, why the council has decided to outsource its revenue collection activities, did the council’s revenue increase or decrease after adopting outsourcing of revenue collection, what are the problems facing revenue collectors leading to non achievement of the target, what is people’s feel about government’s revenue being collected by private agent. A sample of 125 respondents was used. Respondents were drawn from Kinondoni Municipal Council staff, private agent revenue collectors and people who usually pay taxes to the council. Three instruments, namely questionnaire, interview and documentary review of various records were used. Collected data was analyzed based on research objectives. The finding of the study revealed that outsourcing offers no quick-fix to increase local government revenue collection in Kinondoni Municipal Council. Kinondoni Municipal council experience a substantial problems with corruption and exceptionally high profit margins for the private agents at the expense of accomplishing a reasonable return to the respective of Kinondoni Municipal Council The study end with recommendation that when appropriate managed and monitored, outsourced revenue collection may establish a foundation for more effective and efficient local government revenue collection.