A Dissertation Submitted in Partial Fulfilment of the Requirements for Degree of Master of Science in Procurement and Supply Chain Management (MSc.PSCM) of Mzumbe University.Generally, the study aimed at assessing the effectiveness preparation and implementation of annual procurement plan at Tanzanian higher learning institutions. Specifically, the study assesses the appropriate procedures in preparation of APP, ascertain the capacity and capability of PMU staffs, assess the integration of procurement plan and expenditure programmes and also determine the challenges of preparation and implementation of APP. The data for this study were collected by using questionnaires, observation and interview guide. Though taking the case of eight higher leaning institutions a multiple case study design with the sample of 52 respondents were selected by using judgement sampling techniques and simple random techniques. Data collected were analysed both quantitatively and qualitatively by using descriptive statistics and multiple regression analysis by the help of SPSS version 20. The study revealed that appropriate procedures in preparation of APP were followed including involvement of user department in preparation of APP, submission of annual procurement requirements to PMU, aggregation and packages of requirements, using of standard PPRA templates, approval of APP by the budget approving authority and submission and publication of APP except the review of APP is not well followed by the institutions. Also the study indicated that experience and skills of PMU staffs affecting the preparation and implementation of APP while training of PMU staff revealed to be insignificant towards preparation and implementation of APP. The researcher also revealed that procurement plan does not incorporated in the budget, there were no measures or control to ensure effective implementation of APP and the procurement plan differ with the actual procurement at large extent. Moreover, the study revealed that insufficient staffs, lack of competence, late request from user department, poor market analysis and lack of corporation from user department were among the challenges for preparation of APP. Also budget constraints, procurement items are not indicated in the plan and emergency procurement are the challenges for effective implementation of APP. Furthermore, the study revealed that in order to ensure effective preparation and implementation of APP training of incompetent staff, involvement of user department, early release of fund and minimization of emergency procurement. It was recommended that the institutions in order to archive it is goals and complies with law and regulation the effectiveness preparation and implementation of APP should be done.