2 days ago
Kuwait To Cut Off Utilities For Unpaid Bills Under New Law To Curb Debt Evasion
Kuwaiti authorities will begin suspending electricity, water, and other essential public services to residents and businesses who fail to pay their bills within 30 days of notice, under a tough new law designed to crack down on rampant fee evasion and protect state finances.
The Cabinet-approved Decree-Law No. 75 of 2025, published this week, grants ministries and public institutions the power to halt services automatically for anyone with overdue balances, using digital systems to manage both suspensions and reconnections. The law takes effect in three months.
The measure targets widespread abuse in the payment of public utility fees, from water and electricity to telecommunications, as mounting arrears have placed increasing strain on state budgets.
Under the new framework, debtors, whether individuals or businesses, will have 30 days after notification to settle outstanding bills or risk automatic suspension. Service is restored immediately once payment is made.
For those facing genuine financial hardship, competent authorities may approve installment plans. But failure to stick to the schedule triggers immediate debt recovery procedures, including asset liens and fast-tracked enforcement.
Before resorting to court, the law now requires disgruntled customers to file a written grievance with the service provider, which must respond within 30 days. Only then can the case be taken to court, a step officials say will reduce frivolous lawsuits and administrative backlogs.
The decree goes further by granting government agencies a priority lien over all debtor assets, and by treating any official debt document as an 'executive instrument,' meaning authorities can seize assets without lengthy court proceedings.
Debts can be collected for up to 10 years after their due date, with the clock resetting each time the state sends an official demand.
Judicial fees are exempt from the new law and remain subject to separate legislation.
