The purpose of this study was to examine the magnitude of the problem of internal efficiency and effectiveness in the form of dropouts and repetition of secondary schools in welqait wereda. To attain this objective descriptive method was employed which include a sample of five secondary schools, five school leadership member principals, 40 teachers and 40 students were selected using purposive and convenience sampling techniques respectively. Before distributing the questionnaire, its validity and reliability was checked through pilot study. Data was collected using questionnaire from teachers and students and through semi structured interview from the school leadership. The collected quantitative data was analyzed using SPSS software program. Narrative interpretations were used to analyze the qualitative data that has been collected from the school leadership. Furthermore, the analyzed data was presented through frequency and percentages. As a result the findings showed that the students travel long distance from home to school. It has been also indicated that there is lack and absence of encouragement of pupils from teachers. Students believe that they fail to study hard and show lack of interest in education. Parents are unable to provide their children with the necessary support. It has been reported that parents demand for chores is high. The discussion reveals prevalence of early marriage, teenage pregnancy, and gender role disparity. Fear of abduction or rape on the way to and from school and family breakdown (disunity) are also indicated. Regarding the availability of educational facilities; laboratory and library are available. However, it has been indicated that there is lack of instructional materials, guidance and counseling service. Moreover; there are also overcrowded classes. Teachers agree that students’ participation in income generating activities is one of the reasons for repetition and dropout of students.