Full Text Article. Also available at: http://journals.udsm.ac.tz/index.php/uj/article/download/2333/2416Tanzania has embarked on several radical measures to restructure its economy and governance structures, including local governments. For more than four decades, Tanzania has been striving relentlessly for effective decentralisation measures, yet the progress has been slow. The country has passed through several phases of decentralisation, with each phase inheriting some criticised characteristics that have been difficult to dismantle in the successive phases. For example, previously recognised mistakes have continued to block any attempts to diverge from the direction set by the Ujamaa policies. It is argued here that various attempts at decentralisation by the central government since the 1960s in Tanzania have fallen short of the government’s intentions to establish effective local governance. This being the case, two important questions prevail: Why has Tanzania made little progress towards effective decentralisation, despite various attempts to devolve powers from the centre? Why has Tanzania not fully decentralised, as echoed in the policy paper on Decentralisation-by-Devolution (D-by-D)? There have been a number of explanations for this retardation along the path to decentralisation. This article reflects upon the tenability of path dependency theory which posits that the longer an institution has been in place, the more resilient it is to change.