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Adequate &effective delivery of public services is central to achieve the MDGs, which is to be achieved by the essence of good governance by the activities of good leaders. In line to this, the purpose of this study was to identify the role of leadership to ensure good governance in Gimbi town. The study used a descriptive survey method among 164 traders, 33 experts and 5 officials through questionnaires & interview. The collected data were analyzed &results revealed factors such as corruption, being irresponsive, impartiality and weak capacity. The study recommends building capacity, supervising and evaluating the activities of leaders, encouraging by offering incentives and punishing the wrong doers, promoting open discussion with public, involving participation of all stakeholders and above all, implementing the principles of good governance.