The eThekwini Municipality has reported a decline in the debt owed by its employees, with the total amount decreasing from R91 million in December 2025 to R77 million by the end of February 2026. According to the municipality’s February 2026 debt collection report, the number of indebted employees also decreased, from 4,308 to 3,765 over the same period.
The municipality’s employee debt is part of a larger municipal debt burden of R44 billion, with household accounts making up the majority at R33 billion. The South African government has been working to address the financial strain faced by residents, with various initiatives aimed at supporting low-income households.
eThekwini Municipality Debt Breakdown
The municipality’s debt can be broken down into various categories, with unpaid water bills accounting for the largest share at 42%, followed by property rates at 23% and electricity at 15%. The municipality has intensified its credit control measures, with 2,570 water disconnections valued at R209 million and 1,897 electricity disconnections recorded in January 2026.
In February 2026, electricity disconnections rose sharply to 11,458, representing R1.7 billion, while 3,212 water disconnections were carried out, valued at R290 million. The municipality attributed the increase in electricity disconnections to a new disconnection contract.
Infrastructure Challenges
The municipality is also facing ongoing infrastructure challenges, including faulty electricity meters. There are 22,941 faulty meters that have been reported to maintenance, with delays in replacing them. Additionally, there are 15,889 meters that are disconnected, with some instances of tampering.
To address the debt issue, the municipality has introduced various measures, including salary deductions for employees who are more than 90 days behind on payments. Employees can also use their leave benefits to settle outstanding accounts. The municipality has also reported that 41 of the city’s 111 ward councillors collectively owe R2.8 million.
Here are some key statistics on the eThekwini Municipality’s debt:
- R44 billion: total municipal debt burden
- R33 billion: household accounts
- R77 million: employee debt
- 3,765: number of indebted employees
- 41: number of councillors in arrears
- R2.8 million: total amount owed by councillors
For more information on the municipality’s debt collection efforts, visit the eThekwini Municipality website.
