KMA Grapples with GH¢123m Debt- Mayor as he vows sweeping reforms to boost revenue
The Kumasi Metropolitan Assembly (KMA) is reeling under a staggering debt of GH¢123,485,021.95 as of 30 June 2025, prompting the Assembly’s leadership to unveil a raft of measures to restore financial stability and improve its revenue base.
Delivering his maiden address during the first ordinary meeting of the second session of the 9th Assembly at the Prempeh Assembly Hall on Thursday, 17 June, the Metropolitan Chief Executive (MCE), Hon. Richard Ofori-Agyeman Boadi, painted a mixed picture of the Assembly’s financial health.
He acknowledged that while the debt situation poses a significant challenge, the Assembly has also demonstrated resilience in its revenue mobilisation efforts over the past three years.
Hon. Boadi revealed that the KMA’s Internally Generated Funds (IGF) grew by nearly 22% in the 2022/2023 fiscal year and recorded an even stronger growth of almost 27% in 2023/2024.
As of June 2025, the Assembly had mobilised GH¢20.3 million in IGF and received GH¢23.2 million in grants, bringing total receipts for the period to over GH¢43.6 million.
Despite this positive performance, the Assembly’s finances have been strained by a recent court garnishee order, which has further complicated efforts to meet statutory obligations and fund critical projects.
Hon. Boadi stressed that the mounting debt, coupled with the garnishee order, underscores the urgent need for sweeping legal and administrative reforms within the Assembly.
“To tackle this debt burden, we must strengthen our financial management systems and ensure that revenue mobilisation is significantly improved,” he stated.
According to him, the Assembly is prioritising improved revenue mobilisation as a key pillar of its recovery plan. Measures under consideration include digitising revenue collection processes, sealing loopholes, and broadening the tax net to capture more ratepayers.
Hon. Boadi indicated that the Assembly will also roll out legal reforms aimed at enforcing compliance with its bye-laws to curb revenue leakages and enhance accountability.
He assured residents and stakeholders that despite the current challenges, the Assembly remains committed to delivering quality services, upgrading urban infrastructure, and driving the development agenda of the metropolis.
The MCE appealed for the support and cooperation of Assembly Members, staff, and the general public to ensure that the KMA’s revenue generation targets are met in the coming months.
He further urged citizens to honour their tax obligations and comply with local regulations to enable the Assembly to provide the needed social amenities and services for sustainable urban growth.
Hon. Boadi concluded by reiterating the Assembly’s resolve to tackle the debt challenge head-on, safeguard the Assembly’s finances, and ensure Kumasi maintains its status as a beacon of progress and development in the Ashanti Region.
Source: Ghana/otecfmghana.com
