Tanesco, CRDB scheme to ease electricity connection costs

Thousands of rural residents will have their electricity connection fees covered under a new financing scheme involving Tanzania Electric Supply Company (Tanesco) and CRDB Bank, as the government seeks to make electricity more accessible to households and businesses. Under the programme, rural and village residents who cannot afford the connection fee will have the Sh27,000 cost paid by CRDB Bank without having to repay the money. Urban residents will instead access loans of up to Sh320,000 from CRDB to cover the cost of connecting their homes to electricity, which they will repay gradually. The programme, launched yesterday, Friday, October 2, 2026, operates under the slogan “Kila Kaya Itawaka” (Every Household Will Have Electricity). Speaking after launching the initiative, Vice President Deogratius Ndejembi said the government was seeking to ensure electricity reached every Tanzanian because of its role in supporting economic activities and improving household welfare. He also challenged Tanesco, CRDB and other financial institutions to explore a system that would allow customers to borrow electricity credit through mobile money and banking platforms. He said such a system could help households that run out of electricity credit but do not have immediate cash to continue accessing the service. “Just as mobile networks allow people to borrow airtime, we should find a way for people to borrow electricity and repay it later,” Mr Ndejembi said. He suggested that a customer who borrowed electricity worth Sh2,000 could repay Sh2,100, with the additional Sh100 serving as the cost of the service. “If it is possible with mobile networks, it is also possible here so that every Tanzanian can have access to electricity while the borrowing limit increases as they continue repaying,” he said. Mr Ndejembi said the government had also recognised that some urban areas had living conditions similar to rural communities and should therefore benefit from the lower connection fee. “There are areas that are officially urban but look like villages. The people living there have rural conditions, yet they are required to pay Sh320,000 to connect to electricity. To achieve our goals, such a person should pay Sh27,000,” he said. He said Tanzania had made significant progress in expanding electricity access, with all 12,318 villages now connected to electricity. Energy Minister Juma Homera said the government would ensure that its plans and strategies were implemented to achieve universal electricity access. Tanesco managing director Lazaro Twange said the utility currently had more than 6.4 million customers and was expected to connect 1.7 million new customers annually. He said achieving the target required adequate infrastructure, reliable electricity supply and partnerships that could address financial barriers faced by some customers. “Some customers cannot afford the connection costs. To address this, partnerships are necessary, which is why CRDB is supporting the initiative,” Mr Twange said. He said rural and small-settlement residents would receive the Sh27,000 connection subsidy without repayment, while urban customers requiring Sh320,000 would access loans through CRDB. CRDB managing director Abdulmajid Nsekela said the bank had joined the initiative because not every Tanzanian could afford the cost of connecting to electricity. He said the partnership was intended to support households and businesses and contribute to the objectives of Tanzania Development Vision 2050. The programme initially covers five districts, with CRDB targeting to support electricity connections for 500,000 Tanzanians annually. Mr Nsekela said electricity would also allow rural businesses to extend their operating hours and improve productivity. Chairperson of the Parliamentary Standing Committee on Energy and Minerals Subira Mgalu said MPs, village leaders and street leaders would help identify households with the greatest need for the programme. Chamwino District Commissioner Janeth Mayanja said the initiative would provide an opportunity for people who had been unable to connect to electricity despite power infrastructure reaching their areas. Nyasa District Commissioner Peres Magiri said all villages in the district had electricity, but only 150 of its 421 hamlets were connected, making the programme important in expanding access. Dar es Salaam Regional Commissioner Albert Chalamila said the region had about 5.3 million people according to the 2022 Population and Housing Census, with Dar es Salaam and Pwani jointly consuming more than 800 megawatts, driven by industries and other economic activities.