Tanzania has signed contracts for the construction of a 220-kilovolt transmission line from Benako (Ngara District) to Kyaka (Misenyi District), along with a 220/33-kilovolt substation at Benako, ensuring that the Kagera Region is connected directly to the national grid, Daily News reported.

The move follows a government pledge to end the region’s reliance on electricity imports from Uganda. Deputy PM and Energy Minister Doto Biteko witnessed the signing in Dodoma.

“I assure the people of Kagera that the government is determined to complete this project on time within 24 months,” Biteko is quoted as saying, adding that he has directed the state-owned Tanzania Electric Supply Company (TANESCO) to begin compensating 1,014 residents affected by the project route starting in September. 

Tanzania’s installed generation capacity reached about 3,404 megawatts (MW) by the end of 2024, mostly from natural gas and hydropower sources. The government is working to close the electricity access gap, with just 48.3% of the population connected to power in 2023, according to the World Bank. 

Kagera’s electricity demand currently stands below 47 megawatts. Multiple connections are also planned for the region, including routes from Benako-Karagwe to Kyaka and Nyakanazi-Biharamulo to Muleba.

Separately, the energy minister said procurement is in the final stages for the 87-MW Kakono hydropower project. Tanzania is also preparing a 400-kilovolt transmission line from Ibadakuli to Mbarara in Uganda, which will strengthen regional power trade.

As bne IntelliNews reported, Tanzania recently increased its Energy Ministry budget by 19% to TZS 2.25 trillion ($819.64mn) for the 2025/26 fiscal year, prioritising electricity access and clean cooking. Biteko told Parliament on April 28 that 96.5% of the budget—or TZS 2.17 trillion ($816.31mn)—will be channelled into development projects.

Tanzania has also opened its electricity transmission segment to private investors for the first time, with pilot tenders due in September in partnership with the International Finance Corporation, Energy permanent secretary Felchesmi Mramba said at the Africa Energy Forum in Cape Town.