The National Tenants Union of Ghana has directed a petition to the Minister for Works and Housing, Kenneth Adjei, requesting the immediate suspension of the National Rental Assistance Scheme (NARAS). They have raised concerns about significant implementation flaws that undermine the initiative’s purpose. In an open letter dated Monday, April 14, 2025, the Union congratulated the newly appointed Minister on his role but promptly voiced their serious worries regarding the management of the scheme since its launch on January 31, 2023.
The Union described the current implementation as ineffective and exclusionary, calling for a complete suspension of the program. They suggested conducting a broader consultation with stakeholders to review the scheme and potentially reintroduce it in a more equitable form. “We acknowledge the importance of this policy, but we disagree with its current implementation, which has left the majority of Ghanaians in dire need of the services the scheme provides,” the letter states.
Among the key concerns raised are:
- Exclusion of Informal Sector Tenants: The Union says the scheme is designed in a way that marginalizes tenants in the informal sector who arguably need the assistance the most.
- Violation of Rent Law: The provision of two-year rent advance loans contradicts Section 25(5) of the Rent Act, 1963 (Act 220), according to the letter.
- Exorbitant Fees: A GHC100 non-refundable application fee was labelled as “extortionist.”
- High Interest Rate: The 12% annual interest rate on the rent loan was described as outrageous and unhelpful to low-income renters.
- Regional Disparity: Three years after implementation, 10 regions reportedly still have not benefited from the scheme.
- Lack of Transparency: The Union criticized the scheme’s administrators for failing to provide public accountability or disclose the list of beneficiaries, despite receiving GHC 30 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.
By: William Narh