Lusaka, July 25, 2026 — Government has released K115.5 million to settle terminal benefits arrears owed to retired employees of Zambia's eleven Commercial Water Utility Companies, in a move aimed at addressing longstanding financial obligations in the water and sanitation sector.

The Ministry of Water Development and Sanitation announced on Saturday that the funds, released through the Ministry of Finance and National Planning, will provide relief to retirees who have been awaiting their benefits while also strengthening the financial position of the country's water utilities.

According to the Ministry, the intervention is part of a debt-swap arrangement designed to address liquidity challenges that have affected the Commercial Water Utilities. The companies have accumulated significant financial liabilities over the years, largely because of unpaid water and sanitation bills owed by Government institutions.

Under the arrangement, the K115.5 million will be used exclusively to pay terminal benefits to retired employees. At the same time, the payment will reduce the outstanding debt Government owes the utilities, improving their financial standing without creating additional liabilities for the Treasury.

The Ministry said the allocation is expected to restore confidence among current and former employees while improving operational efficiency within the Commercial Water Utilities.

Seven of the eleven Commercial Water Utility Companies are expected to fully clear their outstanding terminal benefit obligations using the funds, while the remaining four utilities with larger liabilities will receive substantial partial payments.

Government says it remains committed to mobilising additional resources to clear the remaining balances through future funding allocations.

The Ministry has directed all Commercial Water Utility Companies to ensure the funds are used strictly for the payment of terminal benefits and are not diverted to other operational expenses.

In line with the Public Finance Management Act No. 1 of 2018, the utilities will be required to submit audited expenditure returns to ensure transparency, accountability and prudent use of public resources.

The Ministry said the intervention reflects the New Dawn Government's commitment to sound financial management, improving the sustainability of the water supply and sanitation sector, and ensuring retired workers receive the benefits they are entitled to after years of service.

Permanent Secretary Eng. Romas Kamanga also expressed appreciation to the Ministry of Finance and National Planning for the timely release of the funds and thanked retirees for their patience as Government works to clear the remaining arrears.

Government says it will continue implementing reforms aimed at strengthening the financial viability of Commercial Water Utility Companies to guarantee reliable, sustainable and quality water supply and sanitation services across the country.