TANESCO Launches Electric Cooker Loan Programme to Reach One Million Tanzanians
On 11 June 2026, the Tanzania Electric Supply Company (TANESCO) signed a landmark agreement with manufacturers, distributors and financial partners to provide affordable electric cookstoves through a credit facility. The ceremony, held at the Mashujaa Jamatini compound in Dodoma, was witnessed by the Hon. Deogratius Ndejembi, Minister for Energy, and TANESCO Managing Director Lazaro Twange.
Background and Objectives
Despite Tanzania’s progress in expanding grid access, a large share of households still relies on biomass for cooking, contributing to indoor air pollution and deforestation. According to the World Bank’s 2024 Clean Cooking Survey, only about 22 % of Tanzanian homes use electricity or other modern fuels for meal preparation. The new loan programme aims to close this gap by removing the upfront cost barrier that prevents many families from adopting electric cookstoves.
The initiative aligns with the government’s National Clean Cooking Strategy 2023‑2030, which targets a 60 % shift to modern cooking energies by the end of the decade. By facilitating access to efficient appliances, TANESCO expects to improve health outcomes, reduce fuel‑wood consumption, and support the country’s climate‑resilience goals.
Loan Mechanics and Eligibility Criteria
Under the agreement, both new and existing TANESCO customers can purchase an electric cookstove on credit. Repayment is linked directly to the beneficiary’s electricity bill: a portion of each monthly power purchase is automatically applied toward the loan balance.
Eligibility requirements, as outlined by Managing Director Lazaro Twange, include:
- Possession of a valid National Identification Card (NIDA);
- At least three months of continuous service with TANESCO;
- Being the head of household or the registered homeowner.
Loan tenures are flexible, ranging from three to six months depending on the applicant’s average electricity usage and the specific stove model selected. Interest rates are set below market levels to keep monthly repayments affordable, with the exact figure disclosed during the application process.
Implementation Timeline and Expected Impact
The programme will be rolled out over a three‑year period, beginning in July 2026. TANESCO plans to partner with local micro‑finance institutions and stove manufacturers to ensure country‑wide coverage, including rural districts where grid connectivity is newer.
Projected outcomes, based on pilot data from the Northern Zone conducted in early 2026, indicate:
- Approximately one million Tanzanians will gain access to electric cookstoves by the end of 2029;
- Average household cooking energy expenditure could drop by 15‑20 % due to higher efficiency of electric plates versus charcoal or firewood;
- Indoor particulate matter (PM2.5) levels are expected to fall by an estimated 30 % in participating homes, according to measurements taken during the pilot phase.
Monitoring and evaluation will be overseen jointly by TANESCO, the Ministry of Energy, and an independent advisory board comprising representatives from the International Energy Agency (IEA) and the World Health Organization (WHO). Quarterly reports will be published on TANESCO’s website to ensure transparency and allow stakeholders to track progress toward the programme’s targets.
By integrating financing with existing electricity sales, TANESCO’s model offers a replicable pathway for other utilities seeking to accelerate clean‑cooking adoption while maintaining fiscal sustainability. As the initiative scales, it has the potential to become a cornerstone of Tanzania’s broader energy‑access and environmental‑strategy agenda.
