Traders reselling GH¢25k Kejetia phase one shops for up to GH¢120k — Local Government Ministry

The local government ministry has expressed concern over an unfair practice among shop owners at the phase one of the Kumasi Central Market Redevelopment project. According to sector minister Mahama Ayariga, some shop owners are subletting their shops for prices far exceeding the agreed premium cost of 25,000 cedis. Some are reportedly distributing the shops among themselves and subletting them to others at a rate of 100 to 120 thousand cedis, which is up to four times the premium cost.

Ayariga stressed that this is unfair and urged that the market rate should determine the payment. Some shop owners have also failed to pay the full premium cost despite the five-year lease expiry. As a result, only half of the expected 5-year premium payment has been collected so far. The premium payments were intended to fund the second and third phases of the project.

Kumasi mayor Richard Agyeman-Boadi reported that only 89 million cedis have been collected, which is insufficient for the completion of the project. He emphasized that the market stalls should be valued at their real worth for the second phase and that the assembly, along with the local government minister, plans to devise new means for premium collection.

The city mayor warned traders to settle their outstanding premium debt by December or face losing their shops.