Suspend National Rental Assistance Scheme – Tenants Union to govt

The National Tenants Union of Ghana has petitioned Minister Kenneth Adjei. They want him to suspend the National Rental Assistance Scheme (NARAS). They cite major flaws in its implementation. These flaws undermine the purpose of the initiative.

In an open letter dated April 14, 2025, the Union congratulated the new Minister. However, they expressed deep concerns about the scheme's management since it began on January 31, 2023. They described its current implementation as ineffective and exclusionary. The Union called for a complete suspension of the program. They also suggested a broader consultation to review and possibly reintroduce it fairly.

The letter states, “We acknowledge this policy's need but disagree with its current state.” Many Ghanaians in dire need are not receiving help from the scheme.

Key concerns include:

1. Exclusion of Informal Sector Tenants: The scheme marginalizes tenants in the informal sector who need assistance most.

2. Violation of Rent Law: The two-year rent advance loans contradict Section 25(5) of the Rent Act, 1963 (Act 220).

3. Exorbitant Fees: A GHC100 non-refundable application fee is labeled as “extortionist.”

4. High Interest Rate: The annual interest rate on rent loans is set at 12%. This rate is outrageous for low-income renters.

5. Regional Disparity: Three years after implementation, ten regions have not benefitted from the scheme.

6. Lack of Transparency: The Union criticized administrators for failing to provide public accountability or disclose beneficiaries' names despite receiving GHC 30 million in startup capital.

Frederick Opoku, Secretary-General of the Union, signed the letter on behalf of its leadership and members. He stated, “This is not just a policy disagreement—it is a call for transparency, inclusion, and fairness.”