Rehoboth acts on unpaid accounts
Rehoboth Town Council has begun implementing a directive from the Ministry of Urban and Rural Development, James Sankwasa requiring local authorities to suspend water and electricity services to government institutions, ministries and large businesses with outstanding municipal accounts.
The matter was discussed during the council's ordinary meeting on 1 June 2026, where the municipality's Chief Executive Officer presented Circular 2 of 2026, issued by the Ministry of Urban and Rural Development.
The directive, addressed to mayors, chief executive officers of municipalities and town councils, as well as chairpersons and chief executive officers of village councils, instructs local authorities to suspend services to non-paying government entities and large businesses by 5 June 2026.
According to the circular, many government ministries, institutions and large businesses have failed to pay local authorities for services rendered. The ministry noted that the resulting loss of revenue has left many local authorities struggling financially and unable to adequately provide services to residents.
The circular further states that while local authorities often disconnect water and electricity services to residents with relatively small outstanding balances, significant amounts remain unpaid by government institutions and large businesses. Citing provisions of the Local Authorities Act, the ministry said local authorities are required to collect rates, charges and fees owed to them, warning that failure to do so weakens municipal revenue streams and contributes to financial distress.
The directive also states that chief executive officers, as accounting officers of local authorities, are responsible for ensuring that municipal revenue is collected and managed in accordance with the law. Mayors, deputy mayors, chairpersons and vice-chairpersons are expected to monitor the implementation of the directive. During the meeting, Mayor Jacky Khariseb emphasised that the instruction came directly from the minister and warned that failure to implement the directive could result in disciplinary action against responsible officials.
Responding to a request for an update on implementation, council officials confirmed that the municipality had already begun enforcing the directive. The Strategic Executive for Infrastructure, Rudolf Muhembo reported that electricity services had been disconnected at several schools and other government institutions with outstanding accounts. Council further stated that the Ministry of Health and Social Services had settled its electricity account in full following the implementation of the directive. Officials said institutions with outstanding balances are encouraged to contact the council's accounts division to verify and reconcile their accounts.
Rehoboth Town Council said it will continue implementing the directive as part of efforts to improve revenue collection and strengthen the municipality's financial position.
