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This paper presents the study of municipal solid waste (MSW) as a potential source of renewable energy in Arusha city. The city of Arusha annual average MSW generated was estimated at 43,772 tonnes. Characterization revealed the main components of MSW to compose of biomass materials such as food, paper and wood waste. Based on the characteristics of the MSW, evaluation was conducted to determine energy potential that would be recovered. Results from proximate analysis of MSW samples showed average calorific value of about 12MJ/kg which indicate annual energy potential of 128.9 GWh. Results indicate there is a substantial energy potential to recover from MSW the largest share being renewable energy. The composition of waste from developing and developed countries was further compared with that of Arusha city. Results indicated that in developing countries characteristics of MSW is mainly composed of food waste as was the case of Arusha city.