This research paper contains challenges and prospects of good governance in Buee town 01 Kebele, Ethiopia. At recent time the different definition of the term of good governance given by various international organizations and an attempt has been made to explain in detail the meaning, element and characteristics of good governance. Hence, the principles indicators of poverty reduction need to begin by looking at improvement of the standards of living of people given human needs fundamentals. This research paper used to follow the necessary procedure orderly written by designing background, statement of the problem, objectives of the study, significance of the study, scope of the study, limitation of the study and also used different research design and methodology of the study such as data source that includes primary and secondary source of data and sampling techniques, method of data collection. The major findings are concluded, lack of community participation in plant preparation, discontinuity of public utility, lack of efficient and effective service delivery to the community, lack of competent work force between the community, the Kebele’s manager is not elected by community and the concerned body is not created awareness to the community with the concept and elements of good governance that contribute in reduction of poverty. The researcher believes that reduction of poverty need the existence of practical of good governance more. The conclusions and recommendations have been put in brief manner.
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