These days there is a critique that says quality of education is declining both in public andrnprivate HEI's. In this study special emphasis has been made to students' enrollments. andrnadmission criterion, instructors qualification, experience and competence, methods of staffrnrecruitment, selection , retention and separation, availability of infrastructures and educationalrnmaterials such as class size, text books, laboratory, libraries, etc and the condition of thernteaching-Learning process. Descriptive survey research method was used in the study andrndata was analyzed using statistical tools such as percentile, chi-square (x2), and weightedrnmean. In the study 420 respondents were used as a source of information. These were 300rnstudents, 90 instructors and 30 top management members who were randomly andrnpurposively selected from these randomly selected private higher institutes. In addition, fivernNekemte town education officials were interviewed to gather adequate information. Thernfindings of the study revealed that major organizational factors that affect the quality ofrneducation in private higher education institutes of East Wallega were lack of competentrnstudent enrollment and poor student back ground, lack of qualified instructors andrnmanagements, instructors' poor teaching methodology, inappropriate methods of assessingrnstudent performance and competence. In addition the quality of education provided in theserncolleges is affected by unavailability of educational materials, facilities and lack of adequaterntechnologies, lack of communication technologies, lack of available teaching campuses andrnover crowded class rooms, shortages of laboratories, libraries, computer laboratories, workrnshops and lack of pedagogical and other in service training programs, lack of Financial andrnmaterial support from ministry of education and other stakeholders. Finally it was concludedrnthat quality of education in private HEl's was found to decline due to lake of adequate andrnproper in put, weak through put process resulting into poor quality education. In addition' thernPHEl's them selves and their method of evaluation as well as their management systemrngreatly contributed to poor quality education. At the end the study recommends thatrnavailability of human, material and finical facilities be seriously checked when partite investorsrnare allowed to open private colleges. In addition the private HEl's themselves and thernconcerned government authorities are expected to improve quality of education by crossrnchecking the problem contributing to the deterioration of quality education