The State Fuel and Power Corporation (SFPC) was established in 1964 under the then Ministry of Water, Construction, Land and Environment by Presidential Decree No. 12 of 1964. It was made responsible for managing the power stations and providing services on both islands. Sector reform under the Act No.3 of 2006 transferred regulatory issues from the utility to the parent ministry and established the Zanzibar Electricity Corporation (ZECO) thereby replacing ZSFPC to facilitate the generation, transmission, transformation, distribution, supply and use of electricity in the Islands of Zanzibar.

ZECO is 100% owned by the Government through the Ministry of Land, Housing,Water and Energy,