The ongoing financial crisis crippling the second phase of the Kumasi Kejetia-Central Market Redevelopment project has worsened, with construction firm, Contracta, laying off approximately 150 additional workers.
The affected workers include engineers, technicians, and essential technical staff.
This latest round of redundancies leaves the site virtually deserted, reducing a workforce that once peaked at nearly 2,000 personnel down to only essential company managers.
Unfulfilled Government Pacts Drive Redundancies
Sources close to Contracta reveal that the decision follows months of prolonged inactivity at the project site.
Up until the layoffs, the construction firm had reportedly been paying full monthly salaries to idle staff staying at home.
This arrangement was tied to an agreement stipulating that the Government of Ghana would subsidise a portion of the workers’ wages during the standstill.
However, insiders allege the government failed to honour its financial obligations, forcing Contracta to shoulder the fiscal burden alone—a situation leadership ultimately deemed unsustainable.
A Critical Project Stalled
The multi-million-dollar second phase project, designed to complement the already completed first phase of the ultra-modern market facility, has been stalled for some years due to a lack of state funding.
The prolonged gridlock has triggered a double-edged crisis, impacting both the construction workforce and local commerce.
Displaced employees have expressed deep frustration, appealing directly to the government to release the necessary funds to resume construction and restore their livelihoods.
One worker stated that this is the only source of income some of them have to survive, warning of severe family hardships and broader societal consequences.
Simultaneously, traders who were evacuated from the market to allow for reconstruction continue to raise alarms over the severe economic ripple effects the stalled project has had on their businesses and daily sustenance.
The Ministry of Finance and the Ministry of Local Government have yet to issue an official response regarding the missed subsidy payments or a timeline for the release of project funds.