The primary aim of this study was to examine the practice and challenges of competency based rnassessment in private TVET institutions in Kolfe Keraniyo Sub-city, Addis Ababa. The main rnsource of information was trainees and staff of selected private TVET higher education rninstitutions found in Kolfe Keraniyo Sub city. The total population was 604 and the sample size rnwas 235 (38.9%) of the population size). Three TVET institutions were selected by purposive rnsampling technique, and the study participants included 74 trainers, 161 trainees, and 9 rnassessors and 3 deans. Trainers and assessors were selected by simple random sampling, andrntrainees by purposive sampling. Each of the deans of the three institutions were considered. rnPrimary Data were collected from trainees, trainers, assessors and deans using questionnaires rnand interviews. Secondary data were obtained from National Competency Assessment Center rnassessors. In the analysis of data, descriptive statistics such as frequency, percentages and mean rnscores were employed. The study showed that it is very difficult to say that the TVET trainers and rnassessors were adequately trained to effectively handle the teaching duties and roles in rncompetency-based TVET program. Both the assessors and trainers were found to be rninexperienced and less efficient to properly conduct activities and provide supportive and timely rnfeedback for trainees. The trainees were found passive, poorly motivated and also less interested rnfor the teaching learning program. Therefore, in order to alleviate the problems associated with rnhuman and non-human inputs of training, it is recommended that the Ministry of Education, the rnregional TVET bureau and TVET colleges should devise ways of securing competent TVET rntrainer and search for additional inputs in order to lessen the existing severe problems with rnregard to motivations, assessments, equipment and facilities