Urbanization in Tanzanian cities is on the rise, leading to significant changes in settlement patterns and social welfare provision. The approach will involve synthesizing existing research on urban development, informal housing dynamics, and public service delivery in Tanzania’s cities. The theoretical framework will provide a robust foundation for understanding how these factors interrelate and influence welfare outcomes, particularly among vulnerable populations. Policy recommendations will focus on the need for integrated urban development strategies that address both infrastructure needs of formal and informal settlements.