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KSD carries R1bn in overdue rates, refuse and rental debt

By The Coastal Reporter

15 September 2026 · 1 min read

This article was created using or in collaboration with AI. It was then reviewed, fact-checked and edited by a real human. Lastly, it was approved and published by a senior editor.

KSD carries R1bn in overdue rates, refuse and rental debt

Uncolletected refuse on the streets if Mthatha. Source: Internet

King Sabata Dalindyebo Local Municipality’s latest quarterly report shows large arrears across property rates, refuse and rentals, with much of the money unpaid for more than 90 days.

King Sabata Dalindyebo Local Municipality is sitting on more than R1bn in overdue property rates, refuse and rental debt, according to its fourth-quarter report for the year ended 30 June 2026, which was presented to council in July.

The Mthatha-based municipality’s latest figures point to continued strain on its cash flow at a time when local councils depend heavily on billing and collections to keep services running. Any hard line on recovery is likely to put more pressure on households and businesses already behind on payments.

Property rates debt stands at R485,454,552, with R289,300,105 older than 90 days. A further R153m relates to penalties.

Refuse debt is listed at R336,396,242. Of that amount, R206,820,328 is more than 90 days overdue, while R110m relates to penalties.

Rental debt remains high at R207,772,844, with R116,593,438 older than 90 days and R83m linked to penalties.

The report also records electricity debt of R97m, which it says is affecting the municipality’s ability to service its debt to Eskom. It adds that a shortfall in electricity sales has been linked to outstanding information from a smart-meter service provider, and that attorneys are preparing a letter of demand against the company.

The report comes after years of pressure on KSD to improve revenue collection as arrears pile up across core services in the municipality that serves Mthatha and surrounding towns and villages.

Elsewhere, property rates revenue shows a shortfall of R6.6m, while electricity sales are down by R313.4m. Capital grants also underperformed, although the municipality says it received an extra R50m in disaster recovery funding towards the end of February and only began spending it in March.

On collections, the municipality says it has been making strides to recover prior-year debt. The report says receipts for current-year billing and older debts were 94% in 2023/24, 102% in 2024/25 and 105% in 2025/26.

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