A Dissertation Submitted in Partial Fulfilment of the Requirements for Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University. 2019This study examined the effect of employee training and development on customer satisfaction in the banking industry in Tanzania, using the People’s Bank of Zanzibar (PBZ) in Dar es Salaam as a case study. In specific, the study identified types of training and development programs implemented by PBZ to employees; examined the effect of employee training and development on customer satisfaction; and explored challenges facing PBZ’s implementation of training and development programs. The study employed a cross-sectional research design to collect both quantitative and qualitative data from 194 respondents. The study used questionnaire and structured interviews as instruments of data collection. Data analysis employed descriptive statistics and correlation for quantitative data while content analysis for qualitative data. Data were presented in form of texts, figures and tables. The findings revealed that on-the-job training is the main mode of the employee training program implemented by PBZ. In rare cases, off-the-job training is implemented for a few employees. Moreover, the study revealed that employee training and development is significantly and positively related to customer satisfaction in PBZ (r=0.356, p<0.001). The main challenges constraining the PBZ implementation of employee training and development programs include inadequate budget and time limitation for employees to effectively participate in the training. This study concludes that employee training and development has an effect on customer satisfaction in PBZ. The study recommends that banks should continue to provide effective relevant training to their employees in order to enhance employee work efficiency, deliver quality services as well as increase customer satisfaction.