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AFD supports the Kakono hydropower plant development project in Tanzania
Kakono comprises an 88MW plant with fish pass and an associated transmission line. It will be a major power generation asset in the highly productive northwest of Tanzania. Kakono plant will increase the energy injected into the interconnected grid and will have a stabilizing impact on the grid.

The development of the Kakono hydropower plant has been identified as an opportunity to develop renewable energy in the northern region of the country, which has significant potential, high demand and low production capacity near consumption centers. This plant will have a stabilizing impact on the grid in the region. 
The Kakono hydroelectric project is therefore strategic to increase the generation capacity in this north-western region and to improve the balance and reliability of the power system.


The project is in line with the National Energy Policy (2015) specific objectives of enhancing power reliability and coverage of transmission and distribution networks; increasing use of renewable energy in the generation mix; and accelerating rural electrification to foster socio-economic transformation. The project is a priority of the Power System Master Plan updated in 2020. 

The main objective is to strengthen a low-carbon economic growth in Eastern Africa by supporting the development of renewable energy, cross-border linkage and regional stability of the grid, in Kagera region but also in the neighboring regions in Tanzania and Uganda.

The specific objectives of the project are to: 

  • increase installed renewable power capacity in northwestern regions of Tanzania;
  • support efficient, sustainable and resilient power production;
  • improve power network redundancy and interconnectivity;
  • strengthen institutional capacity in Tanzania for hydropower management. 

 At national level for Tanzania:

  • Reliance of electricity supply in the underserved Kagera region will improve and enable increased access to affordable and reliable power; 
  • Renewable energy share in Tanzania’s electricity mix will increase;
  • Avoiding 388,000 tons of CO2 annually compared to emissions from a thermal power plant (diesel), type of power plant currently operated by TANESCO in the region;
  • The project is expected to have positive direct and indirect social impacts on the communities in the project area and more broadly in areas where electricity supply will be provided (1000 direct employment opportunities, indirect employment opportunities that will benefit local communities and stimulate long-term economic development in the area. The Kakono reservoir will have a potential for development of fisheries).

At regional level for Eastern Africa:

  • The project will contribute to the regional energy market in East Africa 
  • The project will pave the way to the upcoming Tanzania-Uganda interconnector
Project start date
Project end date
25 Years
Duration of funding
Kagera Region, Tanzania
Financing tool
110 000 000
Financing amount
Tanzania Electric Supply Company Limited (TANESCO)

The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.