For the development of a country and organizations, as well as churches, leadership plays an important role. An appropriate leadership style can influence and ensure the prosperity and the economic growth of both organization and the people. While skilled leadership elevates the organization and country to growth, poor leadership can destroy the soundest organizations. Most of the failures in the organization have come from an incorrect direction that the leaders pursued to achieve the objectives. The purpose of this qualitative phenomenological study design was to assess the leadership practices and challenges in Sodo City local Kale Heywet Church. Phenomenological studies survey human experiences through the images provided by the people who participate. The main aim was to provide a detailed understanding of beliefs, emotion, attitudes, and perspectives of church leaders in the Wolaita Kale Heywet Church. Thematic analysis was used in data analysis. Data analysis yielded a number of themes: a) thoughts about leadership (definitions, philosophy, styles of leadership), b) leadership practices (planning & coordination, being a role model, vision sharing, empowering, encouraging, directing change) c) leadership challenges (challenges they experience, overcoming challenges), d) hopes for the future (involving new generations, resolving cultural issues, appointing bible based leaders and listening to the people). The findings of this research might help the local church to be well prepared for the future leadership of KHC’s.