The Ghanaian government has raised concerns about the subletting of shops at the Kejetia market in Kumasi. According to the Local Government Minister, Mahama Ayariga, some shop owners who purchased their shops for GH¢25,000 are reselling them for up to GH¢120,000, a trend the government describes as unfair. This has resulted in a significant loss of revenue for the government, which had expected to collect a total of GH¢165.3 million in premium payments over five years.
The government's concerns were raised at a stakeholder meeting in Kumasi, where it was revealed that many shop owners had failed to pay the full premium cost despite the five-year expiry date of their tenancy. As a result, only GH¢89 million has been collected so far, which is insufficient to fund the completion of the market project. The government had planned to use the revenue from the market to fund the second and third phases of the project.
The Kejetia market redevelopment project was commissioned with a total of 165.3 million cedis expected to be taken as premium at the end of a 5-year lease. However, the premium payment has been lackadaisical with majority of the occupants failing to honour their financial obligations. The project aims to add modern trading and support facilities to the existing Kejetia complex.
The Kumasi mayor, Richard Agyeman-Boadi, expressed disappointment that some individuals who do not even sell at the market have acquired multiple shops and are selling them at inflated prices. He warned traders not to pay any money to individuals or entities purporting to be taking the market premiums on behalf of the assembly.
The government is now devising new means for collecting premiums, including using an independent entity to collect market premiums for the second and subsequent phases of the market project. The consultant for the project, Tony Yeboah-Asare, emphasized the need for regular and adequate premium payments to properly manage the facility.
The phase 2 project is currently at a 68 percent overall project of work with 84 percent of procurement made and 49 percent of construction works done. Construction works on the second phase of the Kumasi Central Market Redevelopment project are expected to resume in October 2026.
Traders in the phase one market have been cautioned to settle all their outstanding premium debt by the end of December or risk losing their shops. The government is urging traders to cooperate and make their payments to ensure the successful completion of the market project.
Key points
- The government has collected only GH¢89 million in premium payments, far short of the expected GH¢165.3 million.
- Some shop owners are reselling their shops for up to GH¢120,000, far exceeding the original premium of GH¢25,000.
- The government is devising new means for collecting premiums, including using an independent entity to collect market premiums.
