The Ministry of Local Government, Chieftaincy and Religious Affairs has raised concerns over the alleged resale and subletting of shops at the first phase of the Kumasi Central Market Redevelopment Project at prices substantially higher than the premiums originally paid to the Kumasi Metropolitan Assembly.
Local Government Minister Mahama Ayariga disclosed at a stakeholder engagement in Kumasi on Monday, September 21, 2026, that a preliminary assessment had uncovered instances in which occupants who obtained shops for a five year premium of GH¢25,000 subsequently transferred or sublet the spaces for between GH¢100,000 and GH¢120,000.
Mr Ayariga said the practice had raised concerns because the substantial difference between the original premium and the amounts being demanded from subsequent occupants meant that significant potential revenue was accruing to individuals rather than the public authority responsible for the redevelopment project.
“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 GH¢25,000 but sold to others between GH¢100,000 and GH¢120,000,” the minister said.
He argued that if the prevailing market value of a shop was around GH¢100,000, the government should consider capturing that value directly through the premium structure so that the additional revenue could contribute towards financing the subsequent stages of the redevelopment.
“If GH¢100,000 is the market rate, then let us collect at the rate, so the state can use that money to fund phase three,” Mr Ayariga said.
The concerns extend beyond the alleged resale of shops. The ministry and the Kumasi Metropolitan Assembly say a considerable number of occupants have also failed to settle the full premiums due under their five year tenancy arrangements.
When the first phase of the redevelopment was commissioned, the authorities expected to generate GH¢165.3 million in premiums over the five year period. However, Kumasi Mayor Richard Agyeman Boadi said only GH¢89 million had so far been collected.
The amount represents roughly 54 percent of the expected GH¢165.3 million, leaving a substantial gap in the revenue projections that were intended to support the financing of later stages of the market redevelopment.
According to the mayor, the shops in the first phase were deliberately offered to traders at an affordable premium. He said the authorities subsequently discovered instances involving individuals who allegedly obtained multiple shops and later transferred them to others at substantially higher prices.
Mr Agyeman Boadi cited the case of an individual who, according to him, does not trade at the market but controls 20 shops and allegedly sold them for GH¢100,000 each after acquiring them at the official GH¢25,000 premium.
The revenue generated from the first phase was intended to contribute to the financing of the second and third phases of the wider Kumasi Central Market redevelopment programme. The authorities are therefore seeking a different approach to premium collection as preparations continue for the subsequent stages.
Under the proposed arrangement for phase two, the government intends to determine premiums based more closely on the prevailing value of the market spaces.
Mr Agyeman Boadi said the objective was to generate sufficient internal revenue from the market itself to support the continuation of the redevelopment rather than relying exclusively on additional borrowing.
“We are using proceeds from phases one and two to construct phase three. We are not going to borrow any cash; we will use the revenues from the market to do the construction,” he said.
The assembly, the ministry and representatives of the traders are consequently expected to engage in further discussions to determine appropriate premium levels for the market stalls and shops.
An independent organisation is also expected to be engaged to oversee premium collection for the second phase and subsequent stages of the project, with the aim of strengthening revenue administration and reducing potential leakages.
Project consultant Tony Yeboah Asare of Avangarde Design Services stressed that an effective revenue model would be necessary to ensure that the completed facility could be properly operated and maintained.
He said adequate payments from traders would be essential to provide the resources required by whoever is eventually appointed to manage the facility.
The second phase of the Kumasi Central Market redevelopment is currently reported to be 68 percent complete overall. Procurement is said to be 84 percent complete, while construction works stand at 49 percent.
The second phase forms part of the broader redevelopment of the Kumasi Central Market and is expected to introduce thousands of additional trading spaces and supporting infrastructure to the existing Kejetia complex.
The project contract, valued at €248 million, was signed in December 2018 with an initial completion period of 48 months. However, implementation was subsequently delayed, with construction works expected to resume in October 2026.
The latest financing discussions come after the Kumasi Metropolitan Assembly announced that efforts were underway to secure the resources required to revive the stalled second phase. The project had remained delayed for years, leaving traders and other stakeholders awaiting completion of the expanded market facilities.
The mayor has also dismissed reports that the distribution of stalls in the unfinished second phase has already begun.
He warned prospective occupants and traders not to hand money to individuals or organisations claiming to be collecting premiums on behalf of the Kumasi Metropolitan Assembly.
The assembly is also giving occupants of the first phase until the end of December 2026 to settle their outstanding premium obligations. Those who fail to clear their debts by the deadline could risk losing their shops, according to the authorities.
The renewed attention on premium collection comes as the authorities seek to establish a sustainable financial model for the entire redevelopment programme, with revenues from the market expected to play a central role in supporting the completion and future management of the facility.
The immediate focus is therefore on recovering outstanding premiums, addressing concerns surrounding the transfer and subletting of shops, establishing a revised valuation system and preparing for the resumption of construction on phase two in October.
