City resumes debt collection after RedForce exit
The City of Windhoek says it will resume collecting outstanding municipal debt through its own internal resources following the expiry of its contract with RedForce Debt Management, with residents now required to negotiate payment arrangements directly with the municipality.
In a statement issued on Friday, the City confirmed that the winding-down period of its contract with RedForce officially ended on 31 July and that no new external debt collection service provider has been appointed.
"Effective Monday, 3 August 2026, all customers with overdue municipal accounts who wish to negotiate payment arrangements are required to engage directly with the Debt and Risk Management Division at the City of Windhoek," the municipality said.
The City said it will administer arrear municipal accounts internally while council considers the way forward.
It also warned that interest on overdue municipal accounts will be charged at the applicable rate of 20% per annum, together with prescribed disconnection fees, in accordance with General Notice No. 444: Municipality of Windhoek Tariffs 2026/2027, published in the Government Gazette on 1 July.
The municipality encouraged residents and businesses with outstanding accounts to engage voluntarily with its Debt and Risk Management Division to negotiate suitable payment arrangements. "Early engagement will assist in avoiding enforcement actions, additional interest charges and related costs," the statement read.
The City added that the recovery of outstanding municipal debt remains critical to safeguarding its financial sustainability and ensuring the continued delivery of municipal services. "The City of Windhoek remains committed to managing municipal finances responsibly while working constructively with residents and businesses to facilitate sustainable debt settlement," it said.
The announcement follows calls earlier last week by the Khomas Rate Payers and Residents Association, which urged residents not to enter into any new payment arrangements with RedForce after the debt management company's contract came to an end.
The association said residents with outstanding municipal accounts should now deal directly with the City's Debt Management Department. "All payment arrangements and debt management queries for this week and going forward must be done directly at the City of Windhoek Debt Management Department," the association said.
It also cautioned residents against signing any new agreements with RedForce, warning that such arrangements could leave them with financial obligations they may struggle to honour. "We are unable to help those who go and make arrangements they can't keep up with. Hence we repeat: do not go and make new arrangements with RedForce," the association said.
The group further maintained that RedForce no longer has any authority over residents following the conclusion of its contract.
The City's partnership with RedForce has been the subject of public scrutiny over the past two years, with residents and ratepayer groups raising concerns about debt collection practices, billing disputes and the management of municipal arrears. The municipality has consistently defended the outsourcing arrangement, saying RedForce was appointed to strengthen revenue collection and that the company was remunerated based on successful recoveries. It has also maintained that the majority of debt collection remained the responsibility of municipal officials, with only a portion of overdue accounts referred to the external debt collector.
