MBABANE – The Mbabane Municipal Council is buckling under financial pressure as government departments owe over E90 million in unpaid property rates, crippling service delivery and stalling key development programmes.
This was revealed in the 2024/25 annual report released by the Ministry of Housing and Urban Development, which points to a long-standing mismatch between the budget allocations for municipal rates and the amounts billed by the Council. The growing debt, some of which dates back several years, has forced the capital city to cut back on essential operations and abandon social development projects classified as “unfunded mandates.”
The city has also been relying heavily on limited income from private ratepayers and dwindling reserves. According to insiders at the municipality, several programmes have been halted, with the suspension of government subventions adding further strain.
One of the most affected initiatives is the Urban Development Programme (UDP), originally launched to upgrade informal settlements across Mbabane. Despite its completion more than a decade ago, fewer than half of the beneficiaries have paid for their plots. While some residents cite affordability as a reason, others have simply avoided payment. The UDP was structured as a revolving fund, depending on these payments to support further developments in other low-income areas. The current state of debt has left the programme stagnant.
Former Mbabane Mayor Zephaniah Nkambule, who spoke at a recent community meeting in Mbabane West, said the issue of government’s unpaid rates had persisted during his time in office. He raised concern that, despite the size of the debt, no action has been taken against the government properties in arrears.
“When I was still mayor, I noted that the Council would never take over or forfeit any of these properties, even though the debts kept piling up,” Nkambule said. He clarified that the properties belong to government ministries and not the monarchy. “It’s unfair. When private citizens default, they lose their homes. But government is held to a different standard.”
Nkambule further criticised the ministry’s recent announcement that subventions to Mbabane and Manzini would be discontinued. He said this decision places an unsustainable financial burden on residents, who are now expected to absorb the costs of a city that is unable to function properly without adequate funding.
He called on government to settle its outstanding debts to prevent further decline in municipal services and to ensure Mbabane remains a functioning capital city.
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