KMA staggered by 44 court cases, judgment debts
By DL News
Published
2 min read
Delivering his first address during the 9th Assembly's second session at the Prempeh Assembly Hall, Metropolitan Chief Executive, Hon. Richard Ofori-Agyeman Boadi, described the debt situation as alarming.
The Kumasi Metropolitan Assembly (KMA) is confronting a massive financial crisis, with its debt soaring to GH¢123,485,021.95 as of June 30, 2025. In response, city authorities have unveiled sweeping reforms aimed at regaining financial stability and boosting revenue.
Delivering his first address during the 9th Assembly's second session at the Prempeh Assembly Hall, Metropolitan Chief Executive, Hon. Richard Ofori-Agyeman Boadi, described the debt situation as alarming. He attributed the bulk of it to judgment debts and court-related liabilities, many of which arise unexpectedly from long-standing contractual and legal disputes.
To mitigate the growing burden, the KMA is implementing a comprehensive legal strategy. Mr. Boadi disclosed that the Assembly’s Legal Department is now actively pursuing out-of-court settlements in high-risk cases and negotiating flexible payment arrangements for others that have already been adjudicated.
He also revealed the introduction of a risk assessment system designed to flag and prevent new liabilities before they occur. “At present, there are 44 cases involving the Assembly in court—10 of which are active,” he said. “Seven have already been resolved out of court, and further discussions are underway to resolve more.”
Mr. Boadi noted that many legal challenges stem from unauthorized demolitions and the abrupt termination of contracts—issues often handled without proper legal input. He has now directed all departments and sub-metros to submit such matters to his office for legal vetting before any action is taken.
Beyond legal reforms, the Assembly is sharpening its focus on revenue mobilisation. While current revenue streams show promise, the Mayor said they require tighter supervision, digital upgrades, and broader stakeholder involvement to reach their full potential.
Despite the debt crisis, the Assembly has posted strong financial performance in recent years. Internally Generated Funds (IGF) grew by 22% in the 2022/2023 fiscal year and surged by nearly 27% in 2023/2024. So far in 2025, KMA has raised GH¢20.3 million in IGF and received GH¢23.2 million in grants—bringing its total revenue to over GH¢43.6 million.
The Mayor also pointed out that recent reforms to the District Assemblies Common Fund have earmarked GH¢29.6 million annually for Kumasi, specifically allocated to key development sectors.
While acknowledging the progress made in revenue collection, Mr. Boadi emphasized that financial discipline and innovation will be critical moving forward.
