The study is among a few attempts to understand how higher education institutions (HEIs) fulfil the expectations of students. It therefore contributes through analysing the mediating role of psychological contract fulfilment on the relationship between the lecturer's competency and entrepreneurial intention (EI) among undergraduate students. The study involved a cross-sectional design in which the structured questionnaire was used to collect data from 321 third-year students. During the process, the stratified and systematic sampling techniques were adopted by allocating students in strata per their respective degree programs, and after that, they were selected systematically from each degree program. Structural Equation Modeling (SEM) was used to analyse all relationships that were tested to be positive and significant. Hence, the study confirms the important competencies among lecturers as key predictors of psychological contract fulfilment in the Tanzanian context. Furthermore, it confirms the importance of psychological contract fulfilment on entrepreneurial intention (EI). Finally, it confirms the mediating effects of psychological contract fulfilment on the relationship between a lecturer's competency and EI. The findings of this study imply that HEIs should emphasise identifying and developing competencies among lecturers by conducting short- and long-term training to fulfil the promise given to university students during promotion campaigns. Also, universities are recommended to improve their means of fulfilling students' expectations to build beneficial relationships between HEIs and students. Therefore, HEIs must strive to understand specific students' expectations to use them as the basis for building successful relationships.