Mass Layoffs Hit Kejetia Phase II as CONTRACTA Cites Unpaid Government Subsidy
About 150 workers on the stalled Kejetia Phase II Market Project in Kumasi have been laid off by construction firm CONTRACTA, deepening concerns over the future of one of the city’s most anticipated infrastructure projects.
The dismissed staff include engineers, technicians, and labourers, and represent nearly two-thirds of the total workforce deployed on the site.
The decision, according to sources close to the company, follows months of inactivity at the project location, during which workers remained at home but continued to receive monthly salaries.
Company sources say the layoffs became unavoidable after a financing arrangement with the Government of Ghana broke down.
Under the alleged agreement, the state was to subsidise part of the workers’ salaries during periods when construction was halted. With the subsidy not materialising, CONTRACTA said it could no longer sustain the wage bill without active work on site.
“The burden became unsustainable,” a source familiar with the matter said. “We have kept workers on payroll for months with no progress on the ground. Without government honouring its commitment, the company had no choice but to downsize.”
The Kejetia Phase II Project was designed as an extension of the redeveloped Kejetia Market, intended to provide additional trading space and modern facilities for thousands of vendors in Kumasi’s central business district. Work on the project has been stalled for years, sparking frustration among traders, residents, and workers who see it as vital to the city’s commercial growth.
Affected workers have expressed anger and disappointment over the layoffs, appealing directly to the government to release funds and restart construction. Speaking to the media, several said the project’s resumption is tied directly to their ability to provide for their families.
“We are pleading with government to release the money for the project to continue so that we can return to work and earn something for our families,” one worker said.
Others warned that the job losses could push many households into financial distress at a time when alternative employment is scarce in the city.
“This is the only work some of us do to survive,” another worker explained. “If we are laid off and there is no alternative, people may be forced to do anything possible just to feed their families.”
The development has renewed public scrutiny over delays to Kejetia Phase II and the economic ripple effects for Kumasi. Traders in the area say the stalled project has limited expansion opportunities, while labour groups argue that prolonged inactivity undermines confidence in large public infrastructure contracts.
Neither the Ministry of Trade and Industry nor the Ministry of Finance had responded publicly to the layoffs at the time of filing. Stakeholders are now calling for urgent clarity on funding arrangements and a clear timeline for the project’s resumption.
Until then, hundreds of workers and their families face an uncertain wait, with the future of Kejetia Phase II hanging in the balance.
