Urban social services contain various services needed for social development and well being of urban society. Among these, education is the most important one. In this regard, Gimbi town, like other developing country's towns has problem of education. The objective of this study was to identify factors hindering and suggest strategies. To do so, 155 individuals provided information. Besides,existing conditions analyzed. The study reveals existing demand is not proportional to expected supply. There is shortage of schools, classrooms, instructional materials, qualified teachers, low stakeholders participation, lack of motivation, lack of institutional integration and lack of financial resources. These problems led to high dropout and repetition, poor quality education and ultimately poor academic performance. To improve this, study recommends allocating adequate budget, constructing schools and classrooms, providing enough facilities, employing skilled manpower and involving stakeholders to improve coverage and quality eventually to meet MDGs.