The National Tenants Union of Ghana has called for the immediate suspension of the National Rental Assistance Scheme (NARAS), citing significant flaws in its implementation. In an open letter to the Minister for Works and Housing, Kenneth Adjei, dated Monday, April 14, 2025, the Union expressed concerns that the initiative, which launched on January 31, 2023, has failed to meet its objectives and is not serving the population it was meant to help.
While acknowledging the potential of the scheme, the Union has raised several issues that it believes have rendered the program ineffective and exclusionary. According to the Union, the design of the scheme has marginalized tenants in the informal sector, who arguably need the assistance the most. This exclusion, they argue, undermines the purpose of the initiative, which was to assist those struggling to secure affordable housing.
Additionally, the Union points out that the provision of two-year rent advance loans is in violation of Section 25(5) of the Rent Act, 1963 (Act 220). This provision, they claim, contradicts the law and creates an additional financial burden for renters who are already struggling to make ends meet.
Another major concern is the exorbitant GHC100 non-refundable application fee, which the Union has described as “extortionist.” This fee, coupled with a high 12% annual interest rate on rent loans, is seen as a barrier to access for low-income renters, further exacerbating the challenges they face in finding housing.
The Union also highlighted the regional disparity in the implementation of the scheme. Despite the program being in place for three years, ten regions have reportedly not benefited from the scheme at all, leaving many tenants without access to the support they need.
Transparency, or the lack thereof, has been another key issue raised by the Union. They criticized the scheme’s administrators for failing to provide public accountability, particularly in disclosing the list of beneficiaries, despite receiving a substantial GHC 30 million in startup capital.
In the open letter, Frederick Opoku, Secretary-General of the Union, called for a complete review of the scheme, advocating for broader stakeholder consultations to ensure that the program serves its intended purpose in a fair and transparent manner.
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