Teachers’ capacity building is vital for effective achievement of educational goals including quality education. In this study, the researcher aimed at evaluating effectiveness of community and government participation in enhancing teachers’ capacity building: A case of Butimba ward in Nyamagana district. Equity theory propounded by John Stacey Adam in 1963 guided the study as it emphasizes on the equality among workers such as equal pay, treatment, and promotion being part and parcel of teachers’ capacity building. Otherwise, an individual may experience distress lowering work morale. The study employed the use of interviews and questionnaires to collect data from 7 respondents and 103 respondents respectively in Nyamagana district. Both narrative and Microsoft word excel were used for qualitative and quantitative data analysis respectively. The study revealed that, there was a moderate improvement in teachers’ capacity building resulting from the partial participation of both the community and the government of Tanzania in Butimba ward located in Nyamagana district. The researcher recommends that, the government should make sure that accountability with a focus on time is adhered to a high degree for attaining fully teachers’ capacity building in connection to parents putting much effort in shaping their children’s discipline apart from other roles they play for their future benefits. Conclusively, government participation was found to exceed community participation due to negative perception of the community and presence of external sources of fund supporting the government to finance education in Tanzania