Suspend rental scheme over flawed implementation – Tenants Union tells Housing Minister

The National Tenants Union of Ghana has formally petitioned the Minister for Works and Housing, Kenneth Adjei, urging him to immediately halt the implementation of the National Rental Assistance Scheme (NARAS), citing serious structural and operational shortcomings.

In an open letter dated Monday, April 14, 2025, the Union extended its congratulations to the newly appointed Minister but wasted no time in raising red flags about the scheme, which was launched on January 31, 2023.

According to the Union, the initiative—intended to ease rent burdens for struggling tenants—has failed to deliver its core objective due to what it describes as poor execution and exclusionary practices.

“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 stated.

The Union called for an immediate suspension of NARAS and a broader stakeholder dialogue aimed at restructuring the scheme to ensure greater transparency, equity, and impact.

Among the Union’s chief concerns were:

• Exclusion of Informal Sector Workers: The current model, they argue, effectively sidelines tenants working in the informal sector—those most in need of rental support.
• Breach of Rent Laws: The Union claims the scheme’s two-year rent advance model violates Section 25(5) of the Rent Act, 1963 (Act 220), which prohibits landlords from demanding more than six months’ advance payment.
• Exorbitant Charges: The mandatory GHC100 non-refundable application fee was criticized as “extortionist.”
• Unreasonable Interest Rates: The 12% annual interest charged on rent loans was slammed as “outrageous” and counterproductive for low-income earners.
• Uneven Access: Three years into the program, the Union notes that 10 out of 16 regions have yet to benefit from the scheme—raising concerns over regional disparity and fairness.
• Lack of Transparency: The Union accused the scheme’s managers of failing to publish any public data or beneficiary list, despite receiving GHC 30 million in state funding.

“This is not just a policy disagreement—it is a call for transparency, inclusion, and fairness,” said Frederick Opoku, Secretary-General of the National Tenants Union, who signed the petition on behalf of the membership.

The Union is urging the Ministry to reconsider its approach and to involve tenant associations and other civil society groups in future reviews of the initiatives.

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