Can the urban poor of Tanzania afford the cost of using modern sources of energy,1 i.e. electricity, liquefied petroleum gas (LPG) and kerosene? This question has been repeatedly raised, primarily in the political arena, and unfortunately less so in academia. Three major factors reveal the importance of energy affordability in Tanzania. First and foremost is the persistent crisis in the affordability of kerosene and electricity. Second, the continued widespread dependence of households on lower cost biomass sources of energy, especially wood and charcoal, has led to ongoing environmental concerns.