Adoption of mobile banking services by micro, small and medium enterprises in Tanzania: A Case of Akiba Commercial Bank John Leon Masters of Business Administration University of Dar es Salaam, Business School, 2017 Despite benefits of mobile banking technological advancement, customers running SMEs have continued to use traditional banking services characterized by long queues, long distance traveling and time wasting that negatively affect time allocated for other economic activities. This study aimed to assess the adoption of mobile banking services by SMEs in Tanzania using Akiba Commercial Bank as a case study. Out of 13 branches of Akiba Commercial Bank located in Dar es Salaam, 6 of them were selected randomly, where a random sample of 18 bank staff and 180 bank customers running SMEs in the respective branches were also selected to represent the study population. Questionnaires were administered to the randomly selected customers and purposive selected staff. It was found that, out of the interviewed 180 customers running SMEs at Akiba Commercial Bank, the majority of them (57.8%) had a positive perception on the use of the services. Out of them, 74.4% were aware of the existence of various mobile banking services, 17.8% of them were registered with mobile banking services but only 3.9% of the SMEs were using such services. Perceived risks of the banking services was a major reason (84.4%) for the non-use of the mobile banking services, followed by network problems (69.4%), transaction costs (49.7%), perceived complexity in using the services (43.9%), poor skills and knowledge in using the services (27.7%) and poor customer care of the bank (20.8%).Despite the fact that the majority of SMEs had a positive perception on the use of mobile banking services, the level of adoption of the services was very low. Inaccessibility, cost-ineffectiveness and insecurity followed by co mplexity, non-usefulness and no relative advantage of the mobile banking services were the major factors hindering the adoption of services by SMEs at Akiba Commercial Bank. There is a need for the bank to address security issues associated with mobile banking technology so as to ensure success of the technology. The bank should ensure that their system is working efficiently and effectively to avoid network/system failure which may discourage adoption of the service. The bank should also ensure that customers are in a position to recover their money in the shortest period in case of transaction errors and mistakes. Additionally, bank should ensure that the costs for transactions in mobile banking services are affordable to its customers. As information and communication technology grow so rapidly and bear an impact on each aspect of life, the application of ICT in banking services should be promoted. To safeguard the interest of banks and customers, mobile banking should be featured into the governing laws such as the Electronic Transactions and Cybercrime Acts to ensure the bankers and customers of their status, rights and obligation over the use of such technologies. More studies should be done in a wider community especially in rural areas to help banks and financial institutions to promote the adoption of M- banking technology so as to improve financial inclusion of the rural community. .