The major aim of the study was to examine the extent to which internal audit has an impact on service delivery in Kampala Capital City Authority-Kampala District. Others information highlighted included the components of internal audit, factors affecting service delivery and determining how internal audit affects service delivery. The Objectives that facilitated the study were as follows; To find out the contribution of internal auditing towards the growth of Kampala Capital City AuthorityKampala Area; To examine the factors affecting service delivery in Kampala Capital City AuthorityKampala Area; To analyze the relationship between internal audit and service delivery of Kampala Capital City AuthorityKampala Area. A quantitative cross-sectional survey design was used to collect data from population of study were 127 respondents which included top management, middle management and lower management. Stratified random sampling techniques were used in selecting the sample. Questionnaire was the main instrument of data collection and the Statistical Package for Social Sciences (SPSS) was used for analysis The results from the study revealed that there is a significant positive relationship between internal audit and service delivery statistics. The findings further indicated that there was a very strong positive relationship between internal audit and service delivery at r= 0.715 and at level of significance 0.05, this implied that the good internal audit practices improve on service delivery in the society. The findings of the research shows that the components of internal audit like risk management, review of accounting documents, integrity and ethics positively affected service delivery by increasing reliability, safety standards and conformance in the way work of connecting customers to water and sewerage services on time after application, repairing busts and leakages on time, making massive water extension to the rural areas to serve the community at large thus increasing the efficiency and effectiveness of service delivery.