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Government Institutions Owe Utility Company Over Sh73 Billion

by TNC
June 3, 2025
in English
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Zanzibar Faces Critical Electricity Debt Crisis: Public Institutions Owe Billions

Zanzibar’s House of Representatives has raised alarming concerns over massive electricity debts totaling over 73.7 billion Tanzanian shillings, predominantly owed by public institutions to the Zanzibar Electricity Corporation (ZECO).

During recent budget discussions, legislators exposed a stark financial disparity where government entities continue consuming electricity while accumulating substantial unpaid bills. The breakdown reveals Zanzibar Water Authority owes 52.68 billion shillings, while other government institutions account for 13.1 billion shillings, with private consumers contributing 7.98 billion shillings.

Key representatives condemned the “double standard” where powerful institutions enjoy uninterrupted power services despite massive arrears, while ordinary citizens face immediate disconnections for minor outstanding payments.

Lawmakers demanded urgent reforms, proposing innovative solutions like implementing prepaid meters for government departments and introducing stricter collection policies. Representatives emphasized that without immediate intervention, ZECO’s operational sustainability is at severe risk.

Critical concerns were raised about the broader implications, including potential service delivery disruptions and diminishing public trust in government infrastructure management. Legislators stressed the need for comprehensive policy revisions, modern billing systems, and enhanced management strategies to prevent potential electrical grid collapse.

The mounting debt threatens not just ZECO’s financial health but potentially compromises electricity access for millions of Zanzibari residents, making immediate action crucial for the region’s energy stability.

Tags: BillionCompanyGovernmentInstitutionsOweSh73Utility
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