This study explores the impact of e-governance in enhancing service delivery efficiency and transparency in decision-making within local governments, specifically in Kinondoni and Ubungo municipalities in Tanzania. The theoretical foundation of this study was built upon two key frameworks: Innovation Diffusion Theory (IDT) and Principal-Agent Theory. This study used a descriptive research design and a quantitative approach. A stratified random sample of 300 participants (government employees and citizens) completed structured questionnaires. Data were analyzed using descriptive statistics and multiple regression analysis with SPSS software. Secondary data from government reports and policy documents supplemented the primary data to provide additional context. The findings indicate that e-governance significantly improved service delivery and transparency by reducing paper-based processes, speeding up services, and minimizing errors. Regression coefficients of 0.762 for efficiency and 0.735 for transparency were statistically significant (p < .001), with baseline constants of 1.173 and 1.249, respectively, prior to e-governance implementation. The respondents also reported that digital platforms have enhanced citizen engagement and made government operations more accessible. The study concludes that e-governance is a key factor in improving the efficiency of public services and the transparency of decision-making processes in local governments. Recommendations include further expansion of digital platforms, increased digital literacy, and stronger data security measures to maximize the benefits of e-governance.
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