The threat of aflatoxin contamination in food commodities and its association with health risksrnin both animals and humans continues to raise increasing concern over years. In this research, A.rnflavus species found in association with peanuts in storage and their potential to producernaflatoxin in collected samples was determined. About 11 to 87% of collected peanut samplesrnwere infected with various moulds including Rhizopus sp., Fusarium sp., Aspergilus flavus, A.rnniger, other Aspergillus sp., Penicillium sp., and other undefined sp.rnAspergillus flavus is known to be the most patent aflatoxigenic strains infects 80.69 % of therntotal samples analyzed. Eighty five percent of the tested isolates of A. flavus were capable forrnthe production of aflatoxins.rnFrom the total of 52 peanut (Arachis hypogaea) samples analyzed, 38 (73.06 %) were positivernfor aflatoxin. The average levels of aflatoxins detected in the seed samples were betweenrn0.57(from Babile new harvest sample) to 447.02 ppb (from Babile three month stored in pp bag).rnThe higher level of toxicity is more than twenty times greater than the acceptable dosage (20rnppb: US Standards) in peanuts of three month stored after wet shelling. This research pointed outrnthat the storage and shelling practice of farmers have effects in aflatoxin contamination in peanutrndespite enormous efforts to control this mycotoxin.rnKeywords: Peanuts (Arachis hypogaea), A. flavus, aflatoxins, shelling and storage practice