Rundu Town Council — local municipality facing revenue collection challenges, stormwater management crises, and financial debt pressures in northern Namibia.
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June 2026
The Namibian
Rundu Town Councilis owedN$34 million by government offices as of 3 June
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“Rundu Town Council assistant spokesperson Prisca Marembo says as of 3 June, the balance owed to the council by government offices stands at N$34 million.”
Rundu Town Councilmet withNored officials this month over plans to install streetlights
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“The Rundu Town Council met with Nored officials this month over plans to install streetlights in several poorly lit areas across the town to improve safety and visibi...”
Rundu Town CouncilproposedN$485.5 million budget for 2026/27 financial year
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“The Rundu Town Council's proposed N$485.5 million budget for the 2026/27 financial year is under mounting pressure, as the municipality continues to collect only 33% of its own r...”
Rundu Town Councilcollectsonly 33% of its own revenue
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“The Rundu Town Council's proposed N$485.5 million budget for the 2026/27 financial year is under mounting pressure, as the municipality continues to collect only 33% of its own r...”
Rundu Town CouncilaccumulatedN$254 million debt in outstanding water bills to NamWater
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“The minister's letter revealed that under Nathanael's tenure, Rundu has accumulated a staggering N$254 million debt in outstanding water bills to NamWater.”
Rundu Town Councilwas not required toexpressly or implicitly support RedForce in performance of obligations.
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“Judge Orben Sibeya, in his ruling, found that the agreement did not expressly or implicitly require the council to support RedForce in the performance of its obligations.”
Rundu Town Councildid not unlawfully terminatedebt collection agreement with RedForce
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“HIGH Court judge Orben Sibeya has dismissed a N$9.2 million claim by RedForce Debt Collection CC against the Rundu Town Council, finding that the municipality did not unlawfully terminate a debt collection agreement between the parties.”
Local authorities are owed over N$162 million by government ministries, institutions, and businesses, prompting the government to direct municipalities to disconnect water and electricity services to defaulting entities. The urban and rural development minister last month directed all local authorities to cut off services from ministries with outstanding debts failing to settle accounts by 5 June.
Why it matters
Local authorities owed N$162m with service cut-off deadlines expiring signals critical breakdown in government payment obligations and municipal service delivery.
Local authorities are owed over N$162 million by government ministries, institutions, and businesses, prompting the government to direct municipalities to disconnect water and electricity services to defaulting entities. The urban and rural development minister last month directed all local authorities to cut off services from ministries with outstanding debts failing to settle accounts by 5 June.
Homeowners in the Kaisosi housing development in Rundu say they have been paying mortgages since 2022 for houses that remain unfinished, despite securing bank financing two years ago. Helmsman Group, the development company behind the project, has acknowledged the financial pressure on families but attributes delays to challenges beyond its control.
The Rundu Town Council met with Nored officials to discuss plans to install streetlights in poorly lit areas across the town to improve safety and visibility.
Urban and Rural Development Minister James Sankwasa has rejected a contract extension for Rundu Town Council CEO Olavi Nathanael, citing chaotic financial management including a N$254 million outstanding water debt to NamWater, adverse audit findings, and seven years without official auditing. The council has formally notified Nathanael that his employment will end on 3 May 2026.
Judge Orben Sibeya ruled that Rundu Town Council was not obliged to support RedForce Debt Collection CC under their written agreement, and dismissed the collector's N$9.2 million damages claim after finding RedForce failed to meet monthly collection targets of N$5 million, constituting material breach.
Judge Orben Sibeya dismissed RedForce Debt Management's claim against the Rundu Town Council for N$9.2 million, finding that RedForce failed to prove the council repudiated their agreement and that the agency itself breached the contract by consistently failing to meet its monthly debt collection target of N$5 million. The judge ordered RedForce to pay the council's legal costs.
A High Court judge dismissed a N$9.2 million claim by debt collector RedForce against Rundu Town Council, finding the municipality lawfully terminated the company's contract after RedForce failed to meet a N$5 million monthly collection target since March 2021. The judge ruled RedForce did not prove the council had repudiated the agreement or failed to provide necessary support, and rejected claims that faulty water meters prevented the company from meeting its obligations.
Rundu's Ngato Institute of Science and Technology has been disrupted by persistent flooding for over three weeks, with stagnant water from underground sources now a health hazard and breeding ground for mosquitoes. The institute's founder calls for professional engineering intervention to create water channels, and both students and nearby residents are requesting urgent action from the local authority.
Rehoboth Town Council faces a possible bulk water supply cut by Namibia Water Corporation due to the municipality's outstanding N$100 million debt, which would close schools affecting over 10,000 pupils and disrupt operations at a police holding facility with about 200 inmates.
NamWater has suspended planned bulk water supply cuts to Rehoboth following negotiations with the town council over an outstanding debt of N$150 million. Negotiations now involve the Hardap governor's office and the Ministry of Urban and Rural Development, with water services remaining operational pending further discussions.
NamWater has issued notice of possible bulk water suspension to Rehoboth following the town council's unpaid debts exceeding N$100 million. The water utility faces N$2.8 billion in outstanding payments from local authorities and rural water communities, straining long-term water supply security.
Debt collection firm RedForce Debt Management is suing the Rundu Town Council for N$9.2 million over an alleged breach of a 2020 debt-collection agreement, claiming the council sabotaged its work and prevented it from meeting targets; the town council denies the allegations and contends RedForce failed to meet performance targets first. A High Court judgment scheduled for Friday has been postponed to 13 March.
The central government has approved N$108 million to address dangerous stormwater and erosion problems in Rundu's Tutungeni suburb, with work now underway by Chinese contractor CHICO. The project involves constructing an underground canal system and stabilising slopes near the Kavango River to prevent sinkholes threatening homes and infrastructure.
Rundu Town Council CEO Olavi Nathanael responded to the Ministry of Urban and Rural Development's rejection of his contract extension, citing achievements in water supply stabilization, road rehabilitation, and infrastructure development. Nathanael defended his performance as "competitive" despite financial constraints, and attributed service delivery challenges to structural limitations and funding shortages rather than poor management.
The N$665 million Rundu Bulk Water Supply project is approaching completion with 79% progress and expected commissioning in August. Critical pipeline extensions to surrounding communities are 94% complete, though concerns remain about the Rundu Town Council's internal reticulation infrastructure readiness.
A parliamentary standing committee is holding consultative meetings in Rundu this week with five major local authorities to assess land delivery and housing provision. The consultations aim to give Parliament an evidence-based understanding of how housing is planned and delivered at local level, identify constraints, and propose solutions to Namibia's estimated 300,000 to 700,000-unit housing backlog.
Urban and Rural Development Minister James Sankwasa conducted an inspection in Rundu and declared severe soil erosion in Tutungeni and surrounding areas an emergency, ordering the town council to seek three quotations from specialized companies for stormwater drainage and erosion control through expedited government procurement. The minister emphasized the need for collaboration between his ministry and the Ministry of Finance, and criticized poor drainage maintenance and lack of planning while urging stronger revenue collection from government entities to fund repairs.
A parliamentary standing committee on urban and rural development is holding consultative meetings at Rundu with five major local authorities to assess land delivery and housing provision. The consultations aim to gather evidence on how housing is planned and delivered, identify constraints, and propose practical measures to address Namibia's estimated housing backlog of 300,000 to 700,000 units.
Urban and rural development minister James Sankwasa inspected the Tutungeni area of Rundu and ordered urgent action to address severe soil erosion and sinkholes caused by uncontrolled stormwater, directing authorities to submit emergency procurement requests to the Ministry of Finance by Monday. The minister expressed concern that the situation had worsened since his previous visit and criticised the slow pace of interventions and poor management by local leaders.
Urban and rural development minister James Sankwasa has directed Rundu Town Council to stop outsourcing basic maintenance work to private contractors and instead employ vocational training centre graduates and trainees for tasks like unblocking drainage systems. The minister criticised the council's infrastructure management over several years and rejected its explanations, saying basic maintenance issues must be addressed promptly to prevent further service delivery deterioration.