A Research Report Submitted to Mzumbe University in Partial Fulfillment of the Requirements for the Award of Mzumbe University Degree in Business Administration Entrepreneurship and Development (BBA-ED)Branding has gained a huge popularity in Business and marketing. Branding helps companies to shape their reputation and attract a variety of stakeholders. Building a brand helps to create trust with target market. Therefore it is important to have a clear brand strategy and provide every people working for company with structured and detailed brand guidelines, that will reflect the brand purpose, value strategy. The main purpose of this study was to examine the role of internal branding practices in enhancing the employee based brand equity in financial institution. The study focused on three specific objectives namely: to determine the internal branding practices that enhance employee based brand equity, to determine the relationship between internal branding practices and employee based brand equity and to identify the challenges associated with effective implementation of internal branding practice. The study used a case study design. Data were collected through questionnaires. The researcher employed purposive sampling technique in obtaining 50 respondents from the field. Descriptive analysis was used to analyse data. Lastly multiple regression analysis modal was used to establish the relationship among variables. The findings indicated that the financial institution normally set and implement internal branding practice in order to motivate workers or employees and to facilitate bank activities. Also the study investigated that there is a strong relationship between internal branding practices and employee retention. The study recommended that the financial institution should allocate effort to maintain the level of employee satisfaction which raises productivity, more creativity and collaboration which in turn satisfies customer with good services.