Three people feared dead and more than 70 injured on Saturday in a bomb explosion which hit a fully-packed political party rally in Tanzania's northern safari capital of Arusha.

The incident occurred on Saturday evening when a Tanzania's strong political party (Chadema) was wrapping up campaign rallies in the four ward councilor's by-elections.

The by-election is expected to be held on Sunday for ward councilors of Kaloleni, Elerai, Kimandolu and Themi.

It is just one month when a similar bomb explosion hit a Catholic Church in Arusha, killing three people, injuring dozens.

Eye-witness told Xinhua that the bomb hauled in the area when the party leader was about to close the meeting.

Chadema's regional secretary in Arusha, Amani Golugwa, expressed his shock on the incident, saying: "This is a very unique experience since Tanzania get into multiparty democracy."

He however declined to link the incident with other political allies as nobody arrested in connection with the incident.

"It was chaos at the scene as everyone was busy to save his/her life," one of the eye-witnesses said, adding that police who were at the meeting fired live bullets.

It is estimated that 70 people have been injured and were rushed to Seliani Mission Hospital and Mount Meru Regional Hospital.

Arusha Regional Police Commander, Liberatus Sabas confirmed the incident, though declined to comment anything, saying: "It is too early to comment we are still working on the matter. Tomorrow I will be able to say something on this."