Allexer Namundjembo
Motorists who have fallen behind on vehicle licence payments now have a path to relief.
The Road Fund Administration amendment act, 2024, came into force with new regulations gazetted on 22 August 2025.
The law allows exemptions and waivers for license fees, penalties, and interest.
Finance minister Ericah Shafudah said in the notice of the gazetted regulations that the aim is to ease financial strain while protecting the Road Fund’s sustainability.
“With this law now in effect, we are introducing a fair and transparent process through which vehicle owners can seek relief on certain fees and penalties. Our intention is to ease the financial burden on citizens without compromising the sustainability of the Road Fund,” she said.
Under the previous Road Fund Administration Act of 1999, motorists who defaulted had no formal way to request exemptions.
Once a licence expired, arrears and penalties continued to accumulate. Many drivers faced growing debts that made it impossible to settle their accounts.
The situation worsened during the Covid-19 pandemic and other economic downturns, when household incomes dropped and compliance levels fell.
The new amendment seeks to change that. It gives the chief executive officer of the Road Fund Administration (RFA) authority to consider applications for waivers.
In certain cases, the minister of finance will decide. The law also sets timeframes to ensure accountability. The RFA must decide within 90 days, while the ministry must respond within 60 days. This adds predictability for applicants.
Shafudah stressed that the reform is not a free pass for non-compliance.
“The law is not intended to encourage non-compliance but to ensure fairness in cases where citizens face genuine financial difficulties,” she said.
RFA was created in 1999 to manage road user charges and channel funds into road maintenance and development.
Over time, however, unpaid licence fees, interest, and penalties became a burden both for motorists and the fund.
Some debts remained on record for years without collection. The Covid-19 pandemic added pressure, leaving many unable to keep up with fees as incomes shrank.
In 2007, a general notice exempted certain vehicles registered in Namibia from licence fees and travelling fees. The government has also permitted relief measures to promote compliance during difficult times.
Earlier this year, vehicle owners were allowed to renew license even if they had outstanding debts. That change paved the way for the broader amendment now in effect.
With the law in place, motorists can now apply for relief on arrears, penalties, and interest.
