The study investigated the moderating role of digital literacy (ICT) in the influence of ICT on the quality of public service delivery such as education and health within Local Government Authorities (LGAs) in Tanzania. The Structural Equation Model (SEM) was employed to analyze the data gathered from 645 randomly selected respondents. The findings suggest that the quality of primary and secondary education, as well as health service delivery, is positively influenced by the internet connectivity and accessibility, as well as the utilization of e‐government services. The study also indicates that citizens' level of ICT literacy statistically moderates the influence of ICT on the quality of public service delivery. Therefore, this study contributes to the current literature by providing empirical evidence from Tanzania's LGAs, highlighting how context‐specific ICT use improves outcomes in education and health service delivery. The findings inform local government reform strategies and support policy efforts to embed context‐specific ICT solutions into public service delivery.