Water, refuse and sewer fees set for 5% increase in Okahandja
The Okahandja Municipality has tabled a total budget of N$278.1 million for the 2026/2027 financial year, reflecting an increase from the approved 2025/2026 budget of N$236.8 million. According to the municipality’s community budget presentation that was held on Saturday, operating revenue for the 2026/2027 financial year is projected at N$224.4 million, while government subsidies and grants are expected to contribute an additional N$53.7 million. This brings the municipality’s total projected revenue to N$278.1 million.
On the expenditure side, the municipality has allocated N$180.9 million toward operational costs. This includes N$74.8 million for salaries and allowances, N$93 million for general expenses, N$11.5 million for repairs and maintenance, and N$1.6 million for redemption and interest. Capital projects account for a significant portion of the budget, with N$97.2 million earmarked for infrastructure development and service delivery improvements across the town. Among the major capital projects planned for the 2026/2027 financial year are N$36 million for the construction of services in Extension 10 and Ekunde 4 and 5, N$10 million for sewer network repairs and upgrades, and N$6 million for road upgrading, including gravel and bitumen roads.
The municipality also allocated N$5.4 million for equipment procurement, including a grader and tipper truck, while N$3.7 million is set aside for consulting services related to the sewer treatment plant. Other minor projects will receive N$36.1 million. Several smaller development initiatives are also included in the budget. These include N$2 million for a new dumping site, N$5 million for water meters, N$2 million for water network upgrading, and N$1.5 million for refuse wheel bins for 1,000 households. In the sports and recreation sector, allocations include N$2 million for town hall renovations (Phase 1), N$1 million for a soccer field, and N$1 million for sports stadium development in Osona Village.
The municipality noted that several factors may impact budget implementation, including increases in bulk service tariffs, inflation forecasts ranging between 2.4% and 4.2%, unemployment, rapid urbanisation, population growth exceeding 40,000 residents according to the National Statistics Agency, and ageing infrastructure. The budget presentation further noted that tariffs for the 2026/2027 financial year have been recommended for a 5% increase across various consumer categories. These include refuse collection fees, sewerage fees, water charges, basic charges, new connections, meter changes, prepaid water, and emergency services fees.
The municipality’s business model indicates that salaries make up 40% of costs, bulk water purchases account for 29%, general expenses comprise 50%, repairs and maintenance stand at 9%, and redemption and interest make up 1%. Financial performance figures presented show the municipality recorded a deficit of N$62.4 million in FY2025, compared to deficits of N$37.4 million in FY2024 and N$44.1 million in FY2023.
Outstanding arrears have also continued to rise, reaching N$258.1 million in FY2025, up from N$244.8 million in FY2024. The budget was tabled under the provisions of Section 26 and Section 83 of the Local Authorities Act.
