Striker Habibu Haji registered the two goals for the hosts on the 53rd and 68th minutes to hand Yanga the first defeat this season.
The two teams attacked in turns in the early stages of the match, only to be frustrated by profligacy in front of the goal.
A good opportunity for Yanga during the early exchanges came on the third minute, in which midfielder, Raphael Loth, blasted over a free kick from 25 meters out.
The visitors' defender, Juma Abdul, released midfielder, Pius Buswita, within the the hosts' 18 yard area on the 25th minute, the latter failed to make the most of the opportunity.
Mbao FC pushed upfront on two occasions later in the half and won two corner kicks which were though wasted.
The hosts’ good opportunity to notch an opener came on the 33rd minute in which winger, James Msuva, sped into the visitors' area and could only manage a low cross which was easily saved by the visitors' keeper, Youthe Rostand.
Yanga defender, Andrew Vincent, came to the team's rescue on the 39th minute in which he cleared a cross by Msuva from the right.
The skilful Mbao winger then pounced on the rebound, which he could only direct out with a left foot attempt.
Yanga's central defender, Abdallah Shaibu, made a timely sliding tackle to frustrate Mbao FC striker outside the former's area a few minutes from the breather.
Yanga went close a minute into the second half as winger Emmanuel Martin pounced on a poor clearance by Mbao FC's David Mwasa almost 25 meters out and the former's left foot shot went out.
Mbao FC recorded the opener through striker Haji on the 53rd minute, as he got the better of Yanga defender 30 meters out and beat keeper Rostand with a right foot shot.
Haji made it 2-0 from Mbao FC on the 68th minute, drilling in with a left foot effort from 25 meters out.
Mbao keeper Ivan Rugumandiye parried Buswita's right foot shot from outside the former's area on the b84th minute to frustrate the latter's effort to pull a goal back for his team.
Yanga's Shaibu made a goal line clearance to frustrate Mbao's striker to notch the third goal for his side a minute from the end of the regular 90 minutes.
Yanga went close during the added on time in which second half substitute Hassan Ramadhan's free kick from outside Mbao's area hit the underside of the crossbar.
Yanga have, for that matter, failed to reduce their margin with the top two outfits in the league, Simba and Azam FC, who won their respective matches on Friday and in the following day.
In yesterday’s other match, Singida United moved to the third position in the table with a 3-1 victory over Njombe Mji FC at the Saba Saba ground in Njombe.
Singida United have now collected 23 points from 12 matches to continue putting pressure on the top outfits. The team’s victory has also seen Yanga drop to the fourth spot.
