Dissertation (MA Public Administration)Challenges of private sector in providing public service in Tanzania as a case study of health service in Kinondoni Municipality are a goal of this investigation. In fact, the government of Tanzania has engaged various actors in public services delivery. The situation is divisive and in fact raises a need to study the extent to which public receive better services after engagement of the sector. As its methodology the study employed cross sectional as research design and sample size was 50 respondents: 40 were selected using simple random sampling and 10 by purposive sampling procedure. Questionnaire and semi-structured interview were used to collect primary data at KMC while written documents were consulted for secondary data. Methods used to collect data were documentary review and questionnaires. The data were analyzed by using Statistical Package for Social Science Research (SPPS) version 16. Findings of the study showed that status and dynamics of private sector in service delivery is recognized because of its importance in improvement of economy and wellbeing of citizens. Moreover, the study observed that private sectors face challenges when offering service to the public. Most of services are offered with high price in the environment in which most of the citizens have low income to afford the goods and services provided by the sector. Likewise, the affordability of private sector‟s services is not so easy in comparison to the income they have that is why in private hospitals for instance only few can afford and in public hospitals and there a crowd of people looking for services. The gap between those who have and have not is apparently and deplorably growing as a result the rich are maintaining their status and the rest are maintaining their poverty. In addition, the findings revealed further that the government has got potential role to make sure that private sector operate properly. The government itself is a problem to the growth of private sector. This institution has got more problems especially on implementation and effectiveness of its plans. Therefore, it is difficult to offer cognitive support to private sector which is growing faster with efficiency and effective action plans. In fact the objectives of the study met the expected target. The study recommends that government should review policies, laws and regulations to make them more comprehensive to facilitate the sector to have conducive environment to operate. The study concludes that private sectors engagement in service delivery is potential to economic growth and well being of the people and cooperation of the sector with other actors is essential to improve the process of service delivery to the public.