The Minister of Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, has revealed that the cost of the stalled Kumasi Central Market Phase II project has risen to over €305 million, as government moves to revive and complete the development.
Speaking at a press conference in Accra on Wednesday, May 6, 2026, the minister attributed the sharp increase in cost to mounting suspension claims, unpaid Interim Payment Certificates (IPCs), and the demobilisation of contractors in 2024.
According to him, the Kumasi Central Market Phase II project also known as the Kejetia Market expansion was about 58.22 percent complete when work was halted. At the time, more than €27 million in certified payments remained outstanding, triggering additional claims that have significantly inflated the total project cost.
Ahmed Ibrahim disclosed that the original contract sum of €248 million has now increased due to €57.3 million in suspension-related claims, pushing the revised cost beyond €305 million. So far, about €171 million has been paid for work done on the project.
“Following the above breakdown, the total contract sum for the Kumasi Central Market Phase II, putting together the original contract sum and the suspension claims brings the total contract sum as of today to EUR 305,316,528,” he said.
Providing an update on the Takoradi Market Circle redevelopment, the minister said the project had reached 81.62 percent completion before construction was suspended.
He noted that although €41.8 million has already been paid, an outstanding balance of over €6.1 million remains.
The minister explained that both projects were halted in 2024 due to financial constraints, particularly the non-payment of IPCs and the impact of Ghana’s debt restructuring programme.
He added that the delays led to contractor demobilisation and the accumulation of significant suspension claims.
Ahmed Ibrahim warned that the stalled projects have had serious socio-economic consequences, including congestion, unsafe trading conditions, loss of livelihoods for traders and reduced economic activity in Kumasi and Takoradi.
“These markets support thousands of traders, artisans and transport operators. Their delay has real consequences,” he stated.
He emphasised that the projects are not merely infrastructure developments but strategic national investments aimed at transforming urban commerce and improving livelihoods.
Despite the setbacks, the minister assured that government is taking urgent steps to resume work.
He said the Ministry is collaborating with the Ministry of Finance and other stakeholders to secure funding, re-engage contractors, strengthen project monitoring and work closely with traders and local authorities to ensure smooth implementation.
Once completed, the projects are expected to boost local and regional economies, increase revenue generation for metropolitan assemblies, create employment opportunities and support the government’s 24-hour economy policy.
Ahmed Ibrahim stressed that completing the projects remains a top priority, noting that it is essential for safeguarding public investment and restoring economic activity in the affected commercial hubs.
“Completing these projects is not an option; it is a necessity,” he affirmed.
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