National Rental Assistance Scheme Should Be Suspended And Reintroduced In A Better form

Kenneth Adjei, Minister for Works and Housing

Citing significant execution difficulties that they say undermine the initiative’s goal, the National Tenants Union of Ghana has petitioned Kenneth Adjei, Minister for Works and Housing, to immediately suspend the National Rental Assistance Scheme (NARAS).

In an open letter dated Monday, April 14, 2025, the Union expressed its profound concerns about the way the plan has been run since its launch on January 31, 2023, while also congratulating the recently appointed Minister on his new position.

The Union called for a complete suspension of the program and a wider stakeholder consultation to examine and potentially restore the plan in a more equal and better form, describing the current execution as ineffectual and exclusionary.

“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.

Among the main issues brought up 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.

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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 benefitted 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.