Rundu residents owe over N$500 million in municipal debt

Despite major infrastructure investments, the Rundu Town Council remains financially crippled, weighed down by more than N$500 million in unpaid municipal debt owed by residents, according to Kavango East governor Hamunyera Hambyuka.Delivering his state of the region address in Rundu last week, Hambyuka revealed that as of April this year, residents owed the council N$504 936 878.10, while the municipality itself owes N$350 207 794.20 to NamWater, Namibia’s national water utility.“This level of debt poses a serious risk to the sustainability of basic services,” Hambyuka stressed, referencing the combined burden of consumer debt and institutional arrears.This is the first time the N$500 million figure has been publicly confirmed in an official forum, highlighting the scale of the town’s municipal finance crisis.During his address, Hambyuka acknowledged ongoing infrastructure upgrades in the town ranging from sewer and road works to electrical reticulation but warned that the municipality’s financial fragility could jeopardise progress.While not offering a detailed recovery plan, Hambyuka stressed the need for residents to take responsibility.“Development requires collective responsibility,” he said. “We must pay for the services we consume if we are to build a resilient and sustainable Rundu.”Previous warnings The governor’s remarks reinforce earlier warnings reported by Namibian Sun in March this year, which documented a steep rise in Rundu’s NamWater arrears from N$76 million in September 2019 to over N$200 million by June 2023 and eventually N$333.9 million by the end of February this year.At the time, Namibian Sun reported on a final warning letter dated 18 February, in which NamWater CEO Abraham Nehemia threatened to ration Rundu’s water supply if council failed to settle its debt or propose a repayment plan.“To date, we have not received payment or an acceptable repayment proposal,” the letter stated.“If payment or remedial suggestions are not received by 28 February 2025, we will have no choice but to ration the water supply. The last payment made on your account was in November 2024.”Despite the threat, Rundu Town Council CEO Olavi Nathanael later told the public that there was no need to panic, insisting that “everything is under control”.Prepaid system rolloutIn an effort to recoup the ballooning debt, the council has introduced a N$54 million prepaid water meter system, which it hopes will address long-standing revenue collection failures.As reported by Namibian Sun in May this year, mayor Gabriel Kanyanga explained that the system will automatically deduct 30% of every water purchase to settle arrears.“When you come to buy water, 30% of the amount will go toward the debt you owe, and the remaining 70% will be for your current consumption,” Kanyanga explained.

Rundu residents owe over N$500 million in municipal debt

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Namibian Sun 2025-07-28

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Rundu residents owe over N$500 million in municipal debt

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Namibian Sun 2025-07-28

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