The cost of completing the stalled Phase Two redevelopment of the Kumasi Central Market, popularly known as Kejetia, has risen from €248 million to over €305 million, the Minister for Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim has disclosed.
The redevelopment of the Kumasi Central Market is being financed by the Deutsche Bank of Germany, with export credit guarantee from the United Kingdom Export Finance (UKEF).
The second phase of the project is expected to house 6,500 leasable commercial spaces and 5,400closed stores and 800 kiosks, 50 restaurants and 210 fishmonger and butcher stores, 40 livestock stores, among others, as well as provide 900 direct jobs and 2,500 indirect jobs to improve upon the standard of living of the residents.
It is being executed by Contracta Construction UK Limited, the construction firm executing the second phase of the Redevelopment of the Kumasi Central Market, but stalled in 2024 because of financial constraints.
“Delays, unpaid contractor claims and project suspensions drive up costs on the Kejetia Phase two project and the Takoradi market redevelopment project”, the Local government minister explained at a press conference in Accra on Wednesday.
The Minister said the sharp increase in cost was caused by mounting suspension-related claims and delays in payments to contractors following the halt of work in 2024.
According to him, the Kejetia Phase Two project was slightly above 58 percent complete when construction was suspended, with certified interim payments exceeding €27 million still unpaid.
He explained that the prolonged suspension and contractor demobilisation significantly increased the overall project cost.
Mr Ibrahim also addressed the stalled Takoradi Market Circle redevelopment project, revealing that work there had reached more than 81 percent completion before it was interrupted.
However, over €6 million remains outstanding in certified payments.
The Minister warned that the delays in completing both projects have worsened congestion, created unsafe trading conditions, disrupted livelihoods, and slowed economic activity in two of the country’s major commercial hubs.
Despite the setbacks, he assured traders and the public that the government was taking urgent steps to secure funding, re-engage contractors, and accelerate the completion of the projects.
He stressed that finishing the projects remains a key priority for the government because of their importance in supporting local businesses, creating employment opportunities, and providing safer and more dignified trading environments for thousands of traders.
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