A study was carried in two villages of Kamenyanga and Kintinku of Manyoni District, central Tanzania. The overall objective of this study was to understand local communities’ perceptions on climate and variability issues and establish its impacts and adaptation strategies within agricultural sector. Both secondary and primary were used. Primary data were obtained using different Participatory Research Approaches (PRA) including, focus group discussions and household questionnaires. In each village, a sample size of 10% of all households was interviewed. Findings showed that local people perceived changes in rainfall and temperature. The changes have affected crops and livestock in a number of ways resulting in reduced productivity. Empirical analysis of rainfall suggest decreasing rainfall trend between 1922 and 2007 whereas mean maximum and minimum temperature increased by 1.9 and 0.2°C respectively. The average annual temperature increase of 0.7°C between 1984 and 2004 was realized. There are different wealth groups namely the rich, the middle and the poor and these are differently vulnerable climate change. The study concluded that, the wealth of knowledge on coping and adaptation that farmer has should form a foundation for designing agricultural innovation systems to deal with impacts of climate change and variability. Further, development initiatives at community level in semi arid areas should put more emphasis on water harvesting to ensure water storage for crops and livestock.