This study was conducted to examine the factors affecting revenues collection in Local Government Authorities, a case of Biharamulo District Council. The specific objectives were to determine the sources of revenues collected local government in Biharamulo district council. To examine strategies used in collecting revenues from local government in Biharamulo District Council. To examine challenges facing revenues collection by local government in Biharamulo District council. The study involved SME’s available in Biharamulo District Council, local government officers responsible for revenues collections as well as inhabitants of Biharamulo District Council. This study employed a mixed research approach where 12 officials were interviewed and 196 other respondents were given a questionnaire. The 196 respondents, include officials from the district council, revenues collection officials, SME’s as well as the inhabitants of Biharamulo district council who were well conversant with revenue collection and challenges associated with it. The study used questionnaire and interviews for data collection so as to get the desired information and obtained data were analyzed using Statistical Package for Social Science (SPSS V.20). The findings from questionnaire and interview were that revenues are collected from multiples sources due to the presence of these sources such as taxes, fines, penalties, and other contributions in Biharamulo District Council which provide finances to the government. The study also found that the major strategies that are being used by the Local government council in Biharamulo District in collecting revenues from basing on the nature of services provided which may act a source of revenue. The findings successifully revealed that there are the challenges which directly affect the process of revenues collection and they affect to high extent revenue collection process in Biharamulo District Council. Therefore the study recommended that the government should ensure that revenue collection devices are available for free or else with little contributions. Provision of capacity building seminars to staff responsible for revenue collection for effective collection with due diligence. Also, revenue collectors should be faithful in estimating the revenue needed to be charged to the businessmen. Community members and businessmen should have a habit of self-compliance to revenue contributions. Recruit qualified staff on the area of revenue, That the BDC must plan different projects so as to boost revenue collection of BDC, The BDC must use computerized system for xv revenue collection where all data and information pertaining various sources of revenue collection will be systematically kept.