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14th April 2025 3:43:31 PM
2 mins readBy: The Independent Ghana
The National Tenants Union of Ghana has formally written to the Minister for Works and Housing, Kenneth Adjei, urging an immediate suspension of the National Rental Assistance Scheme (NARAS), citing serious flaws in its implementation which they argue defeat the initiative’s core objectives.
In an open letter dated Monday, April 14, the Union extended congratulations to the newly appointed Minister but quickly expressed deep concerns over how the scheme has been handled since its rollout on January 31, 2023.
The Union described the current implementation as both ineffective and exclusionary, calling for a total suspension of the scheme and advocating for broader stakeholder consultations to review and potentially reintroduce it in a more just and accessible format.
“We acknowledge the need this policy brings to the table, but we disagree with the current state of its implementation, which has resulted [in] majority of Ghanaians in dire need of the services the scheme provides,” the letter reads.
The Union pointed to the exclusion of informal sector tenants, claiming the design of the scheme effectively sidelines those outside the formal economy—despite their critical need for rental support. They also highlighted that the two-year rent advance loans offered through the scheme are in direct violation of Section 25(5) of the Rent Act, 1963 (Act 220), a legal breach that undermines tenant protections.
The GHC100 non-refundable application fee was criticized as “extortionist,” and the 12% annual interest rate applied to the loans was labeled excessive, making the scheme unhelpful for low-income renters.
The Union also raised concerns over regional disparities, noting that nearly three years after its launch, 10 regions are yet to benefit from the program.
Furthermore, they condemned the lack of transparency from the scheme’s administrators, citing the absence of public accountability or disclosure of beneficiaries despite the disbursement of GHC30 million in startup capital.
“This is not just a policy disagreement—it is a call for transparency, inclusion, and fairness,” said Frederick Opoku, Secretary-General of the Union, who signed the letter on behalf of leadership and members.
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