Universities exist in order to offer quality education which leads to the production of highly skilled and competent manpower. The aim of this study was to assess the quality of university education in Tanzania, using a case study of universities operating in Mwanza city. The study addressed the following three specific objectives: To find out the perception of students and lecturers about quality education being offered in universities, to assess the challenges facing universities in provision of quality education and to find out the intervention measures that can be put in place to enhance the quality of university education in Tanzania. The study employed a case study research design to answer the three questions which originated from the three mentioned research specific objectives. The study used interview for 46 academic teaching staff, 11 head of faculties, 4 quality assurance officers and 3 librarians. Also questionnaires used for 105 students during data collection. The statistical package for social science (SPSS Version 20) was used to analyze quantitative data and descriptive analysis was used for qualitative data. Finding from the field showed that there are a lot of challenges affecting the provision of quality education in universities. The inadequacy of budget to run university activities, the working and living conditions of students and staff were not conducive; poor infrastructures and outdated facilities affect directly the existence of quality assurance policies and procedures. The study recommended that the institutions should establish their own projects in order to generate funds. Also the university stakeholders especially government should assist these higher learning institutions financially. A part from that, the study found the following suggestion on addressing the challenges in higher learning institutions: ensuring adequate and quality learning resources; library, computer laboratories, ICT facilities, updated and enough reference books.