The study assessed the chemical and heavy metals content in surface water samples collected at 9 points from 3 different streams within a radius of 5 kilometers to the factory, and an additional control water sample collected from a stream at Tarhembe, 12 kilometers from the factory. Laboratory analyses were conducted for 18 parameters, while mean, maximum and minimum values, and standard deviation for all parameters tested were derived using SPSS Version 15. Using the WHO (2011) Guidelines for Drinking Water, the concentration levels of pollutants in water samples were determined for all 18 parameters to establish whether or not they constitute significant health problems. The results for physico-chemical parameters show that pH values range between 6.07 and 8.48 across all sample locations with the highest value recorded in Sample E. Generally, the concentration of these parameters vary across all water samples however, the largest mean value was recorded for the Total Dissolved Solids (TDS) at Sample E which is almost twice the WHO permissible limit. The temperature ranges between 22.4 and 22.9, while Turbidity and Total Hardness range between 6.0 and 232.0 and 10.5 to 66.0, respectively, and are found to be significantly higher than the permissible limit provided by the WHO (2011). All values of physicchemical parameters recorded from the water sample at the Control Community are found to occur below permissible limit except for turbidity. All heavy metals content in water samples were found occurring above the WHO (2011) permissible limits, except for Potassium which was not detected in any water sample. The study concludes that the quality of surface water at the study area is compromised and polluted at significant proportions. The study recommends reduction in release of pollutants and fugitive dust from the factory, amongst others.