Location
Shambu town is located in Oromia National Regional State, Horro-Guduru Wallaga Zone, Horro district at distance of 325 km from Addis Ababa. Its astronomical location is 37005’05’’-37007’45’’ East Latitude and 9033’00’’ -9035’25’’North Longitude. Shambu is bounded by Kombolcha Chancho, Laku Higu, Haro Shote, and Tenno Peasant Associations.

Foundation
Shambu town was founded in 1919 when the sub-district governor of Horro-Guduru Mekonen Tewend-Belay shifted the seat from Chabi to Shambu. The history of Shambu town is connected to the political history of Horr o Guduru. Since that period Shambu began to serve as capital of Guduru sub-district. This continued until the Italian invasion in 1935. After liberation from the Italian rule Guduru constituted a separate district in 1944 and later took Awraja status for which Shambu became a capital. It also remained a capital when the name Horro-Guduru was officially adopted to the Awraja, combining the name of the two districts-Horro and Guduru. This continued throughout the imperial Haile Sellassie and the Dergue periods.

 Population
According to the Population and Housing Census carried out by the Central Statistical Authority, the population of the town in 2007 was 14,995 in 2007. Out of this 7,757 (51.7%) were males and 7,238 (48.3%) females.