Repayment plans for water and waste billing arrears

A repayment plan turns an overdue balance into a written schedule the customer can work towards. It should explain the instalments, how ongoing bills will be handled and what happens if payments are missed.

For a Kenyan water scheme or waste collector, the plan is part of a wider collections routine: check the balance, speak to the customer and agree an amount they can realistically sustain. It is not a promise that every debt will be recovered.

Check the debt before agreeing the plan

Start with the customer's statement. Confirm that recent payments, credits and any disputed charges have been reviewed. An unidentified payment is not a reason to ask someone to pay twice.

If the customer disputes a reading or a missed collection, investigate the service record first. A plan should deal with a checked balance rather than bury a billing error in smaller payments.

Budget for ongoing bills as well as arrears

The customer needs to afford both the service they continue to receive and the amount agreed towards the old debt. Discuss those amounts together.

Illustrative example. Jay owes KES 6,400 and normally receives a bill of about KES 1,500. Six monthly instalments of roughly KES 1,067 would require a household budget of about KES 2,567 a month. Exact instalments must add up to KES 6,400; the final amount accounts for rounding. This example does not establish what Jay can afford.

Keep the distinction between a budget and a payment record clear. After each payment, check the account statement to see which charges were settled and how much remains. Do not assume that calling a payment an instalment changes its allocation.

Put the agreement in writing

A usable schedule answers five questions:

1. What balance is covered by the plan?
2. How much is due on each date?
3. What must the customer pay for ongoing service?
4. Which collection actions are paused while the plan remains protected?
5. What happens after a missed payment or a change in circumstances?

In BillGrid, the repayment plan records the schedule alongside the account. Review the agreed dates and amounts with the customer before relying on it for follow-up.

Explain protection and missed payments

BillGrid supports repayment plans that hold an account out of arrears reminders, late penalties and disconnection action while the plan is protected. Explain the protection that applies to that customer's plan and check its current status before sending further collection messages.

A missed instalment should prompt a review against the agreement. Avoid promising a universal grace period or a fixed number of tolerated misses: the customer needs the terms of their own plan, not a generic example.

Disconnection or suspension decisions must also follow the applicable service terms and notice requirements. An entry on a collections list is not, by itself, permission to act.

Make approval responsibilities clear

Decide who may agree a plan and who reviews arrangements needing further approval. The person speaking to the customer should know when an agreement is confirmed and when it is still awaiting review.

Record the decision and give the customer the confirmed schedule. Don't promise an unapproved arrangement during a phone call.

Review payments and changing circumstances

Check that payments have been recorded and that the account remains manageable. If the customer cannot keep the schedule, discuss rescheduling rather than leaving a broken agreement unexplained. Keep the earlier agreement available as part of the history.

For teams using BillGrid's reminder assistance, review the available settings and offers before enabling automation. Make someone responsible for answering customer questions and checking exceptions.

A monthly routine for the team

• Review newly overdue accounts and unresolved disputes.
• Offer a conversation before arrears become unmanageable.
• Agree affordable instalments alongside the ongoing bill.
• Send the confirmed schedule and explain its protection.
• Review payments, outstanding balances and plan status.
• Record any rescheduling or further collection decision.

See a month of water billing for where repayment plans fit into the cycle, or collections for the wider payment and follow-up workflow.