This study explored the contextual setback of the grassroots elected leaders in grassroots governance in Tanzania. Specifically, it examines the legal framework and functional relations between grassroots elected leaders and their stakeholders in grassroots governance. The study employed the Principal agent model1 and its methodology was primarily qualitative. Its findings relied heavily on observations documentary review and indepth interviews with key informants concerned. Generally, it was found that the contextual setback of the grassroots elected leaders in grassroots governance in Tanzania emanated from various factors. Some of these factors include the weaknesses of the local government Act of 1982 and its enabling legislations, insufficient capacity and motivation, and weakness in functional relations between the grassroots elected leaders and their stakeholders. The study concludes that, first, under inappropriate law, insufficient motivation and inappropriate functional relations between the grassroots elected leaders and their stakeholders in grassroots governance, grassroots governance is difficult if not impossible to comprehend; at best, it is likely to remain an elusive phenomenon. Second, in a context where unethical behaviour of grassroots elected leaders is rarely controlled, some leaders have an opportunity to act according to their wishes and not according to the law, hence jeopardizing grassroots governance. The study recommends substantial amendments to the Tanzania local government Act of 1982 and its enabling legislation. Tanzania grassroots election laws should be amended to allow independent candidates for grassroots local elections in order to minimize political party interference with grassroots elected leaders.
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