The Local Government Ministry of Ghana has discovered that some traders who acquired shops at the Kejetia phase one market are reselling them at significantly higher prices, contrary to the initial agreement. According to Sector Minister Mahama Ayariga, some shop owners are renting out their spaces for more than four times the agreed premium cost of GH¢25,000. This trend has been deemed unfair and is affecting premium payments.
Preliminary assessments revealed that some traders paid the assembly GH¢25,000 but sold the shops to others for between GH¢100,000 and GH¢120,000. The minister expressed concern that this trend is impacting premium payments, with only a little above half of the expected 5-year premium payment collected. The government had expected to collect GH¢165.3 million as premium at the end of a 5-year lease.
However, Kumasi Mayor, Richard Agyeman-Boadi, revealed that only GH¢89 million has been collected, which is inadequate to fund the completion of the projects. He expressed disappointment that some individuals are cheating the system, citing a case where someone sold 20 shops for GH¢100,000 instead of the initial GH¢25,000 price.
The Phase II project of the Kumasi Central Market redevelopment is a planned redevelopment aimed at adding modern trading and support facilities to the existing Kejetia complex. The contract for the 248-million-euro project was signed in December 2018 and was expected to be completed in 48 months. The assembly, together with the local government minister, is devising a new means for collecting premiums.
The assembly plans to collect the real value of the stalls in phase two and use proceeds from phases one and two to construct phase 3. An independent entity is expected to be outsourced for collecting market premiums for the second and subsequent phases of the market project. Consultant for the project, Tony Yeboah-Asare, emphasized the need for regular and adequate premium payments to manage the facility.
Construction works on the second phase of the Kumasi Central Market Redevelopment project are currently at 68 percent overall progress, with 84 percent of procurement made and 49 percent of construction works done. The city mayor debunked speculations that distribution of stalls at the yet-to-be completed market project has commenced, warning traders not to pay any money to individuals or entities purporting to be taking market premiums on behalf of the assembly.
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. Construction works on the second phase of the Kumasi Central Market Redevelopment project are expected to resume in October 2026.
Key points
- Some traders are reselling shops at the Kejetia market for inflated prices, contrary to the initial agreement.
- The government has collected only GH¢89 million in premium payments, which is inadequate to fund the completion of the projects.
- The assembly plans to collect the real value of the stalls in phase two and use proceeds to construct phase 3.
