The Tanzania Electric Supply Company (Tanesco) and CRDB Bank have launched a financing scheme to make electricity more accessible to households and businesses. The programme, which operates under the slogan "Kila Kaya Itawaka" (Every Household Will Have Electricity), will cover the Sh27,000 electricity connection fee for rural and village residents who cannot afford it. This initiative aims to support economic activities and improve household welfare.
Under the programme, rural residents will have their connection fees covered by CRDB Bank without having to repay the money. In contrast, urban residents will 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 was launched on October 2, 2026, by Vice President Deogratius Ndejembi, who emphasized the importance of electricity in supporting economic activities and improving household welfare.
Vice President Ndejembi 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 suggested that such a system could help households that run out of electricity credit but do not have immediate cash to continue accessing the service. This proposal aims to increase access to electricity, just like mobile networks allow people to borrow airtime.
The government has recognized that some urban areas have living conditions similar to rural communities and should benefit from the lower connection fee. Vice President Ndejembi stated that areas officially urban but resembling villages should pay the lower connection fee of Sh27,000 instead of Sh320,000. This adjustment aims to ensure fairness and increase electricity access in these areas.
Tanzania has made significant progress in expanding electricity access, with all 12,318 villages now connected to electricity. Energy Minister Juma Homera emphasized that the government would ensure that its plans and strategies are implemented to achieve universal electricity access. Tanesco managing director Lazaro Twange highlighted that the utility currently has more than 6.4 million customers and aims to connect 1.7 million new customers annually.
The partnership between Tanesco and CRDB Bank aims to address financial barriers faced by some customers. CRDB managing director Abdulmajid Nsekela stated that the bank joined the initiative because not every Tanzanian can afford the cost of connecting to electricity. The programme initially covers five districts, with CRDB targeting to support electricity connections for 500,000 Tanzanians annually.
The initiative is expected to have a positive impact on rural businesses, allowing them to extend their operating hours and improve productivity. Local leaders, including MPs, village leaders, and street leaders, will help identify households with the greatest need for the programme. The programme's success will be crucial in achieving Tanzania's Development Vision 2050, which aims to increase access to electricity and support economic growth.
Key points
- The programme will cover the Sh27,000 electricity connection fee for rural residents.
- Urban residents will access loans of up to Sh320,000 from CRDB to cover the cost of connecting their homes to electricity.
- The programme aims to support 500,000 Tanzanians annually.
