Purpose: The purpose of the paper was to examine factors that predict students' continued usage intention of web-based learning management systems (LMS) in Tanzania, with a specific focus at the School of Business of Mzumbe University (MU). Specifically, the study investigated major predictors of actual usage and continued usage intentions of e-learning system, and challenges of using the e-learning system. Design/methodology/approach: Data was collected through a questionnaire survey to 300 third year undergraduate students, with a rate of return of 77%. A total of 20 faculty members were also interviewed. The unified theory of acceptance and use of technology (UTAUT) was utilized in the study. Findings - The results show that actual usage was determined by self-efficacy, while continued usage intentions of web-based learning system was predicted by performance expectancy, effort expectancy, social influence, self-efficacy and actual usage. Challenges for using web-based LMS were related to ICT infrastructure barrier, LMS user interface was not user friendly, weak ICT policies, management and technical support, limited skills, lack of awareness, resistance to change, and lack of time to prepare e-content and use the e-learning system. Practical implications- The study findings are useful to e-learning managers and university management to identify important factors and develop appropriate policies and strategies to encourage long-term usage of e-learning systems for future studies and lifelong learning. Originality/value – By using UTAUT in the context of continued usage intentions and the integration of an additional construct (“self-efficacy”), the extended UTAUT model fits very well in the web-based learning systems in Tanzania, in particular where such studies are scant. The findings can be used in other institutions with similar conditions in investigating the continued usage intentions of e-learning systems