Dodoma. Residents of 2,292 settlements across Tanzania classified as urban areas but retaining rural characteristics will benefit from subsidised electricity connections at TZS27,000, the government has announced.
The move seeks to address concerns that residents in such settlements face higher connection charges despite having economic conditions similar to those of people living in rural areas.
Deputy Minister for Energy Salome Makamba told Parliament on Wednesday, October 28, 2026, that the government would continue implementing the subsidised connection arrangement for areas that meet the established criteria.
She was responding to Karagwe MP Innocent Bashungwa, who wanted to know why residents in Kayanga and Omurushaka town authorities were being charged TZS320,000 instead of TZS27,000 to access electricity.
Ms Makamba said the Ministry of Energy had reviewed concerns raised by residents and identified 2,292 locations countrywide that qualify for the subsidised rate.
She said the assessment considered several factors, including the economic circumstances of people living in the identified settlements.
In Kayanga and Omurushaka, the qualifying locations include Kagururu-Kabingo, Rwambale, Karaizo, Kayanga Majengo Mapya, Katahoka, Kilimahewa, Galilaya, Tuwaka, Omgakorongo, Nyakanongo, Kashakamba, Golani, Kamahungu, Nyakahama, Karundu, Nyakahanga Nyarutuntu, Nyakahanga Akitoma and Kishao.
The ministerial clarification comes amid concerns over the difference in electricity connection charges between rural and urban customers.
According to Government Notice No. 1020 of 2020, administered by the Energy and Water Utilities Regulatory Authority (EWURA), rural customers living within 120 metres of an existing electricity distribution line pay TZS27,000 for a single-phase connection.
In contrast, urban customers within 30 metres of an electricity line are charged TZS320,960.
Ms Makamba explained that Kayanga and Omurushaka had been classified as urban areas under the criteria set out in Table Five of the Urban Planning Act No. 8 of 2007, which had informed the application of the higher connection charges.
However, the government has recognised that some settlements within urban authorities retain rural characteristics and require special consideration when determining electricity connection costs.
The identification exercise followed concerns raised by MPs during the Ministry of Energy's 2026/27 Budget presentation in April, when lawmakers called for residents in such areas to access electricity at the subsidised rural rate.
The issue highlights the challenge of applying uniform urban electricity tariffs in settlements where administrative classification does not necessarily reflect residents' economic circumstances.
For low-income households, the difference between TZS27,000 and TZS320,960 can be a major barrier to accessing electricity, potentially delaying household connections and limiting opportunities for small businesses.
Ms Makamba said the government would continue facilitating connections at TZS27,000 for residents in urban settlements that satisfy the established criteria.
The arrangement is expected to ease the financial burden on eligible households while expanding access to electricity in areas whose economic and settlement patterns remain largely rural.
However, residents will only qualify for the subsidised rate if their locations meet the government's assessment criteria.