General News Politics

Kumasi Metropolitan Assembly Grapples with GH¢123 Million Debt

442

 

The Kumasi Metropolitan Assembly (KMA) is facing a significant financial challenge, with a debt burden of GH¢123,485,021.95 as of June 30, 2025.

According to the Metropolitan Chief Executive, Hon. Richard Ofori-Agyeman Boadi, the debt continues to grow, largely due to judgment debts.

He made this known during his 1st ordinary meeting of the 2nd session of the 9th Kumasi Metropolitan Assembly at the Prempeh Assembly Hall yesterday.

 

To address this issue, the KMA has formulated a strategic measure to lead a drive for out-of-court settlements on pending cases and attain flexible payment plans with already decided cases.

A risk assessment policy has also been developed to curb the resurgence of such debts in the future.

The KMA is also focusing on enhancing revenue mobilization strategies to meet its expenditure concerns.

The Assembly has implemented various initiatives, including enhanced supervision and monitoring, reward and reprimand, digitalization, stakeholder engagements, and effective communication with ratepayers.

A notable success story is the Race Course Market, where the Assembly’s interventions have improved revenue collection and enhanced the ability of collectors to collect approved fees.

The Assembly has also rehabilitated a 300-meter stretch of dilapidated road to facilitate the movement of vehicles and goods within the market.

The KMA plans to implement a system using Point-of-Sale (PoS) devices to directly transfer all monies received to the bank in real-time. Additionally, the Assembly aims to expand its revenue base by roping in more ratepayers into the Business Operating Space.

The KMA has identified inefficiencies in project management and plan/budget adherence as causes of judgment debts. To address this, the Legal Department will conduct quality checks on all contracts before they are signed off, and a brief on the status of contracts will be presented at Authority meetings.

The KMA’s efforts to address its debt burden and improve revenue mobilization are crucial to its development and ability to provide essential services to the people of Kumasi.

Leave a Reply

Your email address will not be published. Required fields are marked *