Sostenus Wilherm
The City of Windhoek will resume collecting outstanding municipal debts internally after its debt collection contract with RedForce comes to an end on 31 July, with residents urged to prioritise paying for essential municipal services such as water, electricity, rates and taxes.
The development comes after the /Khomas Rate Payers and Residents Association (IKRRA) warned residents not to make any new payment arrangements with RedForce, saying the company’s authority to collect municipal debts on behalf of the City of Windhoek is coming to an end.
The association said RedForce’s debt management services contract concluded following the expiry of a 12-month extension granted in July 2025 and cautioned residents against entering into repayment agreements that could bind them beyond the contract period.
“With the expiry of the contract, we advise residents not to enter into any payment arrangements or agreements that may bind them beyond the expired contract period,” the association said.
Residents were advised to direct all debt-related matters to the City of Windhoek’s Debt Management Department.
Speaking to the Windhoek Observer, City of Windhoek spokesperson Harold Akwenye confirmed that the municipality’s contract with RedForce will officially expire on 31 July 2026, after which the city will temporarily take over debt collection through its internal Debt Collection Division until a new service provider is appointed.
“The contract is ending on 31 July. Going forward, our internal debt collection division will be collecting debts ourselves until we appoint another debt collector,” Akwenye said.
Akwenye dismissed concerns that the City of Windhoek may struggle to manage debt collection without RedForce, saying the municipality had successfully carried out the function before outsourcing it.
“We have done it before. We will just continue with the staff that we always have for collecting debts, so we are capable,” he said.
However, he acknowledged that collecting debts internally would be more expensive than using RedForce.
“All you need to know is that it was always cheaper through RedForce because for us we use lawyers. RedForce is cheaper in terms of collecting the debts than us using the lawyers that we used before,” he said.
He added that the City of Windhoek would revert to its previous debt collection model while the procurement process for another debt collection institution is underway.
“We are going to revert back to collecting debts ourselves with our debt collection department under the Finance Department up to the time we are going to appoint another debt collecting institution,” he said.
Akwenye also appealed to residents not to neglect their municipal accounts despite the transition, warning that failure to pay for municipal services could still lead to service disruptions.
“Even though it is no longer RedForce collecting the debts, people must make sure they do not fall behind in terms of arrears and not paying for their use of electricity, water as well as rates and taxes,” he said.
He urged residents to prioritise municipal payments ahead of other financial obligations.
“People must make sure they prioritise City of Windhoek payments and not other payments like Foschini or Edgars. Make sure you keep your lights on and your water running before you pay other debts,” Akwenye said.
Meanwhile, IKRRA maintained that RedForce no longer has any legal authority to negotiate repayment agreements or manage municipal debt accounts on behalf of the municipality.
“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.
The association also cautioned residents against committing to repayment arrangements they cannot sustain, saying it has previously encountered cases where residents defaulted and later sought assistance.
“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 as of today,” the association said.
IKRRA further reaffirmed its commitment to advocating for transparency and accountability in the management of municipal debt while encouraging residents to verify that all future communication regarding debt recovery originates from the City of Windhoek’s Debt Management Department.
