The aim of this paper is to investigate the impact of free education for all on the primary schools in Babati, Tanzania. The study is based on the fieldwork carried out in Babati district Tanzania, where information was gathered through qualitative methods. The empirical findings are analysed using a World Bank model of how educational inputs affects welfare outcomes. The study examines the millennium development goal with respect to giving every child an education. The study shows that a bigger impact can be seen in an increased enrolment in schools. That was the result of removing the primary school fees. This has resulted in overcrowding in the primary schools, lack of enough teachers, classrooms and learning material. However, over time the performances have improved. In the short term, the removal of school fees increased enrolment but resulted in poor quality of the education. In the long term, these problems are decreasing and the educational sector can now provide education to children that could not afford it before.