The Local Government Ministry has uncovered a widespread subletting racket at the Kejetia Market in Kumasi, where beneficiaries of subsidised shops allocated at GH¢25,000 are reselling or subletting them for as much as GH¢120,000, robbing the state of millions of cedis needed to complete the Kumasi Central Market Redevelopment Project.
At a government stakeholder meeting in Kumasi, Local Government Minister Mahama Ayariga said preliminary assessments of premium payments showed that some shop owners had turned the allocation process into a profit-making venture, subletting their spaces far above the original premium and market value.
“There is evidence to show that some people have distributed the shops among themselves and have sublet them to other people at the actual market rate. They paid the assembly 25,000 cedis but sold to others between 100 and 120 thousand cedis. And I am saying that is unfair,” Ayariga said.
He added: “If 100,000 cedis is the market rate, then let’s collect at the rate, so the state can use that money to fund phase 3.”
The minister did not mince words about the nature of the exploitation, describing it as a return to the days of “Kalabule,” when access to political power was used to hoard goods and inflate prices. He warned that the practice was depriving the state of critical revenue and undermining the financing model for the entire redevelopment project.
Revenue Shortfall
The scheme has had a severe impact on premium collection. When Phase One of the Kumasi Central Market Redevelopment Project was commissioned, the government expected to collect GH¢165.3 million in premiums from traders over a five-year lease period. Those funds were earmarked to finance Phase Two and Phase Three of the project.
However, only GH¢89 million has been collected so far — a little above half of the expected amount — with many occupants failing to honour their financial obligations. Some traders have reportedly made only nominal payments despite the five-year tenancy period having expired.
Kumasi Mayor Richard Agyeman-Boadi said the shortfall was “woefully inadequate” to fund the completion of the remaining phases. He cited a striking example of the abuse.
“The monies we came to meet and the ones we have collected amount to 89 million cedis. The shops were sold at an affordable price to traders only for us to realise people are cheating the system,” he said. “I know someone who doesn’t sell at the market but has twenty shops and sold them at 100,000 cedis instead of the 25,000 cedis price we sold to them for the five-year tenancy.”
A Project Under Pressure
The Kumasi Central Market Redevelopment Project is one of Ghana’s most ambitious commercial infrastructure schemes, aimed at transforming one of West Africa’s largest open markets into a modern trading hub.
Phase One, the Kejetia Market, was completed and commissioned in 2018. It comprises thousands of lockable stores, counter stores, food courts, a transport terminal and other support facilities.
Phase Two involves the redevelopment of the old Kumasi Central Market site to add substantial modern trading and support facilities to the existing Kejetia complex. The contract for the 248-million-euro project was originally signed in December 2018 and was expected to be completed within 48 months.
But the project has been plagued by delays and funding challenges. According to the ministry, Phase Two is currently at 68 percent overall progress, with 84 percent of procurement completed and 49 percent of construction works done. Construction is expected to resume in October 2026.
New Rules for Phase Two
To prevent a repeat of the Phase One problems, the government is changing how stalls will be valued and how premiums will be collected.
“In phase two, we will be collecting the real value of the stalls. We are using proceeds from phases one and two to construct phase 3. We aren’t going to borrow any cash; we will use the revenues from the market to do the construction,” Ayariga said.
The assembly, together with the Local Government Minister and traders, is expected to hold crunch meetings to determine how much premium the market stalls should be valued at to generate enough income for the facility’s management.
An independent entity is also expected to be outsourced to collect the market premium for the second and subsequent phases of the project.
Consultant for the project, Tony Yeboah-Asare of Avangarde Design Services, emphasised the need for regular and adequate premium payments to properly manage the facility.
“As consultant, our main issue is the pre-operational activities. Who is coming to manage the facility? The traders should be able to pay enough for the facility managers to be able to get income to manage,” he noted.
December Deadline
The Kumasi mayor also debunked speculations that distribution of stalls at the yet-to-be-completed Phase Two 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.
Meanwhile, traders in the Phase One market have been cautioned to settle all outstanding premium debt by the end of December or risk losing their shops.
“If we enter 1st January 2027 and you still owe even GH¢1,” Minister Ayariga warned, “the shop will be reallocated.”
For the thousands of traders who depend on Kumasi’s markets for their livelihoods, the completion of Phase Two and the resolution of the premium crisis cannot come soon enough. But as the events of the past five years have shown, realising the project’s full vision will require not just construction — but accountability.
