A mode of teaching where students receive all information passively from a lecturer is ineffective in fostering of conceptual understanding of statistics. One mode of teaching which engages learners in the learning process of statistics is e-learning. This study was therefore, designed to determine the effect and challenges of e-learning on students at Mukuba University. The study employed quasi-experimental design. Sample for the study consisted of 60 third year students of mathematics studying statistics. Self-made questionnaire and statistics performance tests were used to collect data for the study. Students in the experimental group learnt Gamma and Beta Function, and Probability Distributions of Function of Random Variable using E-Learning approach while students in the control group learnt Gamma and Beta Function, and Probability Distributions of Function of Random Variable using conventional learning approach. Data for the study was analyzed using independent sample t-test statistics. The null hypothesis (H0) was tested at 5 percent significance level. The findings of the study revealed that E-Learning approach improved students’ academic performance. Based on this, this study recommended that E-Learning should be used as an alternative method in teaching of statistics.