Kenny Kunene’s Plan for Debt Relief
Patriotic Alliance Johannesburg mayoral candidate Kenny Kunene has put forward a proposal to help households struggling with municipal bills. He wants to introduce debt relief for families whose homes are valued under R1 million, arguing that high unemployment makes it tough for many residents to keep up with service charges.
Why Debt Relief Is Needed
Kunene points out that joblessness has left many families unable to pay for electricity, water, sanitation and refuse removal. When people fall behind, municipalities often raise tariffs on those who still pay, creating a vicious cycle.
What the Relief Looks Like
The idea is to write off or reduce outstanding municipal debt for qualifying households. Kunene also mentions a flat‑rate tariff option that would make billing simpler and more predictable for low‑income residents.
Current Tariff Increases in Major Metros
Across South Africa’s biggest cities, service charges have gone up for the 2026/27 financial year.
Johannesburg
- Electricity: +8.63%
- Water: +12.5%
- Sanitation: +11%
- Refuse removal: +6.2%
- Property rates: +3.6%
Tshwane
- Electricity: +8.8%
- Water: +10%
- Sanitation: +5%
- Refuse removal: +4.1%
- Property rates: +5%
eThekwini (Durban)
- Electricity: +9%
- Domestic water: +12%
- Sanitation: +8%
- Refuse removal: +9.5%
- Property rates: +2%
Ekurhuleni
- Electricity: +8.76%
- Water: +11%
- Sanitation: +8.35%
- Refuse removal: +3.4%
- Property rates: +1.5%
Cape Town
Cape Town raised tariffs for electricity, water, sanitation and refuse, but also set aside R8.3 billion in rates and tariff relief to soften the blow for qualifying households.
Where the Money Goes – Infrastructure Spend
The tariff hikes are part of larger municipal budgets aimed at fixing and expanding city infrastructure.
Johannesburg’s Budget
The city plans to spend R8.8 billion on infrastructure investment and asset renewal for 2026/27. At the same time, Johannesburg is grappling with almost R72 billion in unpaid customer bills, according to the Centre for Development and Enterprise.
Other Metros
- Tshwane: about R2.8 billion earmarked for capital infrastructure projects.
- eThekwini: R75.3 billion total budget, with R6.3 billion for capital expenditure.
- Cape Town: R40 billion committed to infrastructure over the next three years.
- Ekurhuleni: R70.9 billion budget, including funds for infrastructure maintenance and service delivery.
Challenges with Service Delivery and Revenue
Even with big spending plans, many cities face ongoing problems.
Service Problems
Johannesburg has seen repeated water outages, electricity faults and worries about ageing infrastructure. eThekwini continues to battle water and sanitation issues, while Cape Town has drawn criticism for keeping fixed municipal charges despite its relief measures.
Revenue Collection Struggles
When services deteriorate, residents become less willing or able to pay. Municipalities then raise rates on those who still pay, which can worsen the situation. Kunene acknowledges that Johannesburg needs better financial sustainability and improved revenue collection.
What Experts Say
Ann Bernstein, executive director of the Centre for Development and Enterprise, warns that deteriorating services lead to lower payment rates, prompting tariff hikes that further strain households. National Treasury is also rolling out reforms targeting water, sanitation, electricity and waste services in the country’s eight metros, aiming to boost both financial and operational performance.
Conclusion
Kenny Kunene’s proposal for municipal debt relief and a flat‑rate tariff shines a spotlight on the tough choices facing South Africa’s major cities. While metros invest billions in infrastructure, many residents struggle to pay rising service charges. Addressing unemployment, improving service reliability and finding smarter ways to collect revenue will be key to making municipal services affordable and sustainable for everyone.
