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Tenants Union urges government to suspend National Rental Assistance Scheme

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Tenants Union urges government to suspend National Rental Assistance Scheme

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Tenants Union urges government to suspend National Rental Assistance Scheme

Tenants Union urges government to suspend National Rental Assistance Scheme

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The National Tenants Union of Ghana has petitioned the Minister for Works and Housing, Kenneth Adjei, calling for the immediate suspension of the National Rental Assistance Scheme (NARAS) due to what it describes as major flaws in its implementation.

In an open letter dated Monday, April 14, 2025, the Union congratulated the newly appointed Minister on his assumption of office but promptly raised serious concerns regarding the management of the scheme since its rollout on January 31, 2023.

According to the Union, the current structure of the scheme is ineffective and exclusionary, defeating its intended purpose of easing the rental burden for Ghanaian tenants. As such, they are calling for a full suspension of NARAS and a comprehensive stakeholder consultation to review the initiative and consider its reintroduction in a more equitable and accessible form.

One of the Union’s primary concerns is the exclusion of informal sector tenants, who they argue are among the most in need of rental support. They also pointed out that the provision of two-year rent advance loans under the scheme violates Section 25(5) of the Rent Act, 1963 (Act 220), which does not permit landlords to demand such lengthy advance payments.

The Union further criticized the GHC100 non-refundable application fee, describing it as extortionist and unaffordable for many low-income renters. Additionally, the 12% annual interest rate attached to the rent loan was deemed excessive and counterproductive, making it difficult for beneficiaries to repay the loans without financial strain.

Another major issue raised was the regional disparity in the scheme’s implementation. Three years after its introduction, the Union noted that 10 out of Ghana’s 16 regions have still not benefitted from the program, highlighting a lack of nationwide coverage.

They also condemned what they described as a worrying lack of transparency, accusing the scheme’s administrators of failing to publicly account for the GHC30 million startup capital and refusing to release the list of beneficiaries.

The Union urged the Minister to act swiftly to safeguard the integrity of the rental assistance initiative and ensure it serves the people it was meant to help.

Tags: National Rental Assistance SchemeTenants Union

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