This study investigated the quantity of local chickens supplied and sold in four markets in Morogoro urban and rural areas. The gross margin analysis and determination of who benefits in the marketing chain of chickens were established. Also, price competitiveness of local chickens with other alternative sources of protein is also reported. The quantities of chickens supplied and sold in the markets were elastic and varied significantly with sex and month of the year. More cocks than hens were supplied in the markets. Prominent quantities were in the months of July and September, and lowest in the month of January. The profit margins realised by farmers and middlemen were significantly influenced by the months in which both parties sold chickens and the sex of the chickens. Cocks earned higher profits than hens. Middlemen benefited more and earned 65% of the total profit generated in the local chicken market chain. Significant and higher profits were obtained during the months of December, November and October. Local chickens competed better than other alternative protein sources implying that the marketing of local chickens was still unsaturated. Despite the higher prices of local chickens they are higher demanded than any other alternative protein sources such as beef, broiler, fish and beans. Middlemen play a major role in the local chickens marketing chain.