Dissertation (MA Development Studies)The purpose of this study was to assess the livelihoods diversification and adaptation constraints as a result of climate variability in Bahi District, central Tanzania which increases vulnerability of the small-scale rice farming. Specifically, the study focused on the climate variability, associated with farm-income variability, which is recognized as one of the main drivers of livelihood diversification strategies in developing countries. As such, analysing determinants of livelihood diversification choices, to better understand household strategic behavior in the event of climatic risks and other shocks, is important for the formulation of development policies in developing countries highly dependent on rain-fed agriculture, like Tanzania. The study adopted a cross-sectional research design. Purposive and random sampling techniques were employed to select the representative sample. Data collection methods comprised household surveys, focus group discussion (FGDs), key informants’ interviews, and field observation influenced by the Theory of Change. A total of 64 small-scale rice farmers were directly administered with questionnaires. In addition, three FGDs and ten key informants’ interviews were conducted. The data were analysed using SPSS 20 version and MS-Excel computer software to summarize the facts. Descriptive and inferential statistics were used in presenting factors affecting the livelihoods diversification of the small-scale rice farmers, livelihoods diversification coping strategies, and possible constraints to climate variability adaptation. Finally, a regression analysis was employed to assess the determining factors influencing livelihoods diversification among small-scale rice farmers. Generally, the findings show that higher levels of climate variability generally increase the likelihood of diversification by the small-scale rice farmers, suggesting the importance of diversification as a response to constraints imposed by increased climatic risks. Furthermore, unfavorable rainfall conditions made small-scale rice farmers more likely to diversify income, suggesting diversification as a response to opportunities. The study concludes that rural livelihoods among small-scale rice farmers in Bahi District are caught up in a vicious cycle of poverty and food insecurity. Asset ownership is low, household size is very large, and farm productivity is declining rapidly as a result of climate variability. Rainfall variability is the most critical source of risk and vulnerability, with an apparent lack of public investment in infrastructure to reduce the risk of rain-fed agriculture. In terms of policy implications the study recommends to promote water harvesting and small-scale irrigation; increasing access to agricultural technologies; support for diversification and adaptation activities; and skills development among small-scale rice farmers. Finally, in terms of policies relevant institutions, a larger presence of extension agents at the district level favours diversification across all dimensions