Eskom has written off the first one-third of debt owed to it by Khai-Ma Local Municipality under the Eskom Municipal Debt Relief Programme.
The municipality owed Eskom approximately 39-million-rand as of March 2023, with the first write-off amounting to 13-million-rand.
Khai-Ma qualified for the debt relief after meeting the programme’s conditions, including maintaining payments on its current Eskom account and honouring repayment arrangements on its arrears.

The development comes after the National Treasury temporarily withholded on July 2026 the equitable share transfers from 11 Northern Cape municipalities over persistent non-compliance with the Municipal Finance Management Act.
The affected municipalities include Kamiesberg, Khai-Ma, Ubuntu, Umsobomvu, Emthanjeni, Renosterberg, Thembelihle, Siyathemba, !Kai !Garib, Magareng and Phokwane.
Treasury says the transfers will resume once the affected municipalities meet the required conditions and submit proof of compliance, while the withholding is intended as a corrective measure rather than a punitive one.

Northern Cape Finance, Economic Development and Tourism MEC Venus Blennies-Magage has congratulated the municipality, saying the achievement demonstrates sound financial management, discipline and commitment to compliance.
Department spokesperson Kgali Matsime says the department encourages Khai-Ma to continue the work of clearing its financial debts and complying with financial management requirements.