This article investigates the change in the living standards and inequalities in Dar Es Salaam. Two publicly available micro data sets are used to estimate the
household expenditures in 1991 and 1996. Based on the estimated expenditures, living standards and inequalities are quantitatively assessed for each ward, as well as for the city as a whole. These analyses show that both the living standard and the inequality in the city as a whole stayed more or less the same over those five years. However, the living standard of individual ward changed greatly, and as a result, the inequality among wards increased considerably. In 1992, Japan made a grant aid to a wealthy district, which further raised the district’s living standard, thereby resulting in the increase of inequality among the wards. This fact suggests that Japanese policy regarding aid to developing countries should be carefully considered.