There is a contention that gas exploration and extraction activities in Tanzania have not adequately contributed to improved local community livelihoods, despite the existing policy and legal framework guiding such activities. This paper seeks to analyse the effectiveness and implementation of the existing legal and policy framework in ensuring that host communities benefit from gas exploration and extraction projects in the country. It is based on empirical data gathered through a household survey, in-depth interviews and focus group discussions, as well as a review of policy documents, government reports and other relevant literature. Multiple pieces of legislation focusing on gas activities and community livelihoods are examined. While crosscutting issues such as benefits to the local community are included in these policies and laws, the study suggests that some of these policy aspects are not reflected in implementation. Rather, the study indicates that host communities have not benefited significantly from gas exploration and extraction projects in the ways foreseen in the regulatory framework. Effective implementation of the existing regulatory framework is fundamental, if host communities are to benefit from gas activities and if tensions and conflicts are to be minimised. Policy-making processes and implementation practices should be regularly monitored to ensure effective application of the existing framework.