NRZ Delays December Pay and 2025 Bonuses Amid Financial Strain

NRZ has delayed December 2025 salaries and 2025 bonuses, citing financial constraints, with management outlining a phased payment plan expected to conclude by late January 2026 (image source)

The National Railways of Zimbabwe (NRZ) has notified employees that it will not meet its obligations to pay December 2025 salaries and 2025 annual bonuses on schedule, citing persistent financial challenges that have constrained cash availability at year-end.

In an internal notice dated 31 December 2025, acting general manager Dube Kaguru said November salaries had been fully paid, but the organisation was unable to immediately disburse December wages or bonus payments. She said NRZ plans to begin paying December salaries in the week starting 5 January 2026, with full settlement of both ZWG and USD components expected by 23 January 2026. Annual bonuses will be paid after salary arrears are cleared.

“The delay has been due to financial challenges which continue to constrain the organisation,” Kaguru wrote, urging staff to remain patient as management works to stabilise cash flows. She reiterated that the approved December salary structure will be split evenly, with 50 percent paid in ZWG and 50 percent in USD.

The announcement drew concern from employees and unions, who said the timing during the festive season would place additional strain on households already grappling with high living costs. Union representatives called for urgent engagement between NRZ management, the Ministry of Transport and Treasury to secure emergency funding and provide a clear repayment timetable.

Analysts say NRZ’s cash shortfall reflects broader pressures facing state-owned enterprises, including reduced freight volumes, ageing infrastructure, maintenance backlogs and rising operating costs. Once a backbone of Zimbabwe’s freight logistics—particularly for mining and agricultural exports—NRZ has seen revenues eroded by years of underinvestment and service disruptions.

Industry stakeholders warned that prolonged payroll delays could undermine staff morale and operational readiness at a time when dependable rail services are critical to supply chains. “Delays in paying staff risk absenteeism and reduced productivity, which can further weaken revenue generation—a vicious cycle for any transport operator,” a logistics executive said.

Government sources indicated that discussions are underway to prioritise short-term liquidity support while advancing longer-term reforms to restore NRZ’s commercial viability. Proposed measures include tariff adjustments, public-private partnerships for rolling stock and infrastructure rehabilitation, and tighter cost controls.

For now, employees have been asked to await further communication from management. Kaguru appealed for continued professionalism and patience as the organisation navigates the financial strain, adding that updates would be provided as payment timelines firm up.