Keetmanshoop boasts 13.8 budget increase.edited
Keetmanshoop boasts 13.8 budget increase.edited

Keetmanshoop announces 13.8% budget increase

Elizabeth Kheibes
The Keetmanshoop municipality last week announced a 13.8% budget increase to N$296.8 million, compared to the 2022/2023 financial year’s N$255 million.

Last year, then-acting Keetmanshoop CEO Lee Mwemba revealed that even though the town owes nothing to NamPower, its NamWater bill stood at just over N$32 million at the time.

In November 2023, the municipality started suspending unpaid water and electricity accounts of businesses, government offices and other government institutions and has since recovered close to N$20 million of the over N$85 million debt.

"We are the only municipality in the south that does not owe NamPower anything. We have a very dedicated team that would rather pay the electricity than pay salaries," he said.

Mwemba also revealed that Keetmanshoop residents owe a staggering N$127 million in unpaid municipal services. In total, the municipality had a cumulative outstanding amount of N$212 million.

"We have a total of 9 815 customers, however, only 2 257 (23%) of these customers are active payers. 77% of these customers don't make any payment at all. From the active payers, we make at least N$6 million in revenue monthly. This is not enough as we get a water bill of N$3.3 million which we need to settle every month," he told Namibian Sun last year.

Infrastructure development

During the announcement to community members last week, the municipality said of the approved budget, N$5.8 million is a grant from the urban and rural development ministry for infrastructure development.

"This is the budget that we have presented to the minister which was recently approved, and I want to thank you for your continued stewardship of our community, and note that this proposed budget continues some of the basic commitments that I believe we share,” Keetmanshoop mayor McDonald Hanse said.

He listed these commitments as being fiscally responsible, being compassionate, making wise investments that will benefit the town’s residents and “being bold in reaching for a better future for the next generations”.

The municipality has requested a N$12.9 million loan from the Development Bank of Namibia (DBN) and has since received approval for N$11.9 million, which will be used to upgrade electricity infrastructure and for Keetmanshoop Electricity Business Unit capital projects.

As the municipality awaits ministerial approval from the urban and rural development and finance ministries, it said the loan will be paid off in 10 years.

Electricity will receive the bulk of the budget at N$120.4 million (42.2%), while personnel costs like salaries will receive N$79.9 million (27%).

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Namibian Sun 2024-11-24

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