The data collected revealed some of the challenges faced by NGO's in effective service delivery to street children in Uganda: A case study of UNICEF, Lira district. It was found that UNICEF encounters poor coordination with Lira District local government. This was attributed majorly to poverty which makes the government not to offer enough financial support to the organization and also provide their services directly to the rehabilitated street children. Due to this problem, UNICEF is sometimes not in position to provide all the required services to the beneficiaries (street children). Inadequate funds experienced by the organization was seen as the main factor leading to poor management. Qualified workers can not be employed without enough money and as well, some programmes and projects could not go on. Also it was noted that UNICEF faces various difficulties in delivering services to street children mostly in the field of identification, tracing and follow-up of reunified children. The reason given here was that street children tend not to give true information regarding their back ground. Moreso, business people tend to encourage these children to work for them hence making them used to their life on streets. The findings indicate that problems that force children to streets in Lira district ranged from lack of enough parental care, peer pressure, poverty, conflicts, Child neglect, to un authorized government and non-government children's homes. Business communities stand to be ever blamed for maintaining these children in streets as they act as brokers in these people's businesses. The study recommended that government should ensure proper coordination with UNICEF and other organizations dealing with the problem of street children like save the children concerned parents and Freidis Rehabilitation centre. Parents should always be reminded of their parental responsibilities over their children so that they can give enough care to their children to avoid them from running away from home.