Abstract Background Labor induction (IOL) refers to an obstetric intervention which include artificial stimulation of uterine contraction aiming at vaginal delivery of a fetus before the onset of spontaneous labor. Despite undisputed importance of this intervention in improving pregnancy outcomes, data on its utilization and outcomes in Tanzania is limited. The aim of this study was to determine the prevalence, associated factors and outcomes for labor induction among women who were attended at a tertiary hospital in north-Tanzania. Methods We designed a retrospective cohort study and analyzed 53338 deliveries at the Kilimanjaro Christian Medical Centre (KCMC) between the year 2000 to 2015. We enrolled singleton deliveries with vertex presentation and excluded observations with missing information on induction status. Relative risk and 95% Confidence Interval for risk factors and outcomes of labor induction were estimated using log-binomial regression models. Robust variance estimation was used to account for repeated deliveries from the same subject. Results 53,338 deliveries were analyzed. Prevalence of labor induction was 21.63%. Independent risk factors for labor induction were; postdates (RR = 1.21; 95% CI: 1.15–1.28), fetal macrosomia (RR = 1.27; 95% CI: 1.18–1.36) and obesity (RR = 1.12; 95% CI: 1.06–1.18). Labor induction was associated with an increased risk of uterine rapture (RR = 1.84; 95% CI: 1.62–2.09) and low (< 7) Apgar score (RR = 1.27; 95% CI: 1.17–1.37). Labor induction offered protective effect against cesarean delivery (RR = 0.56; 95% CI: 0.53–0.58) and admission to neonatal intensive care unit (RR = 0.94; 95% CI: 0.89–0.99). Conclusion Efforts aimed at achieving the health-related sustainable development goals should focus on increasing access to effective interventions as well as improving quality of health care while being cautioned on likelihood of adverse maternal and fetal outcomes.