Kejetia Market Clears Legacy Electricity Debt, Stable Power Restored

In a significant development for Ghana’s commercial landscape, the management of Kumasi City Markets Limited (KCML) has confirmed the full settlement of inherited legacy electricity debt owed by Kejetia Market. This financial resolution has led to the restoration of a stable and uninterrupted power supply to the vast trading hub, ending a period of disconnection by the Electricity Company of Ghana (ECG) due to accumulated arrears. The successful negotiation and payment mark a pivotal step in revitalizing the operational environment for thousands of traders at the largest market in the Ashanti Region.

Key Points at a Glance

• Settlement Achieved: The new KCML management, which took office in 2025, prioritized and fully paid off the historical electricity debt inherited from the previous administration.
• Power Restoration: Following the debt clearance agreement with ECG, a stable power supply has been reinstated to the entire Kejetia Market complex.
• Current Billing: The market’s current outstanding debt pertains only to ongoing monthly consumption. The combined bill for January and February 2026 is approximately 1.4 million Ghana Cedis.

<

• Addressing Illegal Connections: To combat pervasive illegal power tapping, KCML is implementing a project to install individual electricity meters for every shop unit.
• Ongoing Challenge: High-energy appliances, particularly over 200 irons in the tailoring section alone, present a major metering and billing challenge due to their covert usage.

Background: The Crisis and Its Origins

A History of Accumulated Arrears

Kejetia Market, a cornerstone of Ghana’s economy and a major employment center, had for years operated under the shadow of massive unpaid electricity bills. The debt, described as “legacy debt,” was accumulated under previous market management structures. This financial burden grew to a critical point where the Electricity Company of Ghana (ECG), as the national utility provider, was compelled to enforce its disconnection policies. The disconnection severely disrupted business operations, affecting everything from refrigeration and electrical tailoring equipment to lighting and point-of-sale systems, leading to significant economic losses for traders.

The 2025 Management Transition

The appointment of a new board and management team for Kumasi City Markets Limited in 2025 brought a renewed focus on financial and operational turnaround. One of their first and most urgent mandates was to address the electricity debt crisis that had paralyzed the market’s core infrastructure. Engaging with ECG became a top priority to negotiate a settlement path and restore power, which is fundamental to commercial activity.

Analysis: Implications of the Debt Settlement

Financial and Operational Stabilization

The clearance of the legacy debt is not merely a administrative transaction; it is a catalyst for broader stabilization. For ECG, it recovers substantial non-performing assets and restores a major customer to the billing roll. For KCML and the traders, it signifies the end of a disruptive era. Stable power enables:

• Resumption of full business hours and operations.
• Protection of perishable goods through reliable refrigeration.
• Increased productivity in power-intensive sectors like tailoring, carpentry, and metalwork.
• Improved security with functional lighting systems.
• Restoration of trust with other utility providers and potential financiers.

The Persistent Challenge of Illegal Connections

While the official debt is settled, a deeper, systemic issue remains: widespread illegal electricity connections. As stated by the Operational Manager, Prince Nyarko, the problem is not just about bypassing meters but also about the use of “unbilled items.” This refers to high-wattage appliances, such as multiple industrial irons used simultaneously in tailoring shops, that are connected in ways that evade accurate metering. This practice distorts consumption data, leads to significant revenue loss for ECG (and indirectly, the market’s cost structure), and poses severe fire and safety hazards due to overloaded, unregulated wiring.

Legal and Regulatory Framework

In Ghana, electricity theft and illegal connections are offenses under the Energy Commission Act, 1997 (Act 541) and the regulations of the Electricity Company of Ghana. Individuals or businesses found guilty face fines, prosecution, and disconnection. The responsibility for ensuring compliance within the market premises ultimately lies with the landlord/manager, KCML. Their proactive step toward universal metering is not just an operational upgrade but a necessary measure to comply with national energy laws and mitigate legal liability.

Practical Advice and Forward Strategy

For Market Management (KCML)

1. Accelerate the Universal Metering Project: The installation of individual prepaid or smart meters for every single shop must be expedited. This creates transparency, accountability, and a direct billing relationship between the trader and ECG, eliminating the market’s role as a debt collector.
2. Conduct a Comprehensive Energy Audit: Before full metering, an audit should identify all high-consumption zones (e.g., tailoring, food processing) to plan for potential infrastructure upgrades needed to handle the load.
3. Launch a Public Awareness Campaign: Educate traders on the dangers of illegal connections, the legal penalties, and the long-term cost benefits of legal, metered usage.
4. Establish a Transparent Billing & Dispute System: Create a clear channel for traders to query their bills and report suspected faulty meters to build trust in the new system.

For Traders and Business Owners

1. Prepare for Individual Billing: Business owners must budget for their direct electricity costs, which will now be based on their actual consumption as measured by their shop’s meter.
2. Audit Personal Equipment: Identify and, where possible, replace old, inefficient appliances with energy-saving models to reduce future bills.
3. Cooperation with Installers: Fully cooperate with KCML and ECG technicians during the meter installation process to ensure accuracy and compliance.
4. Report Illegal Activity: Report neighbors or shops engaging in illegal connections. This practice increases the overall cost of doing business and endangers everyone.

Frequently Asked Questions (FAQ)

What exactly is “legacy electricity debt”?

Legacy debt refers to unpaid electricity bills that accumulated over several years under previous management. It is historical arrears, not current consumption charges.

Is the power now stable and uninterrupted at Kejetia Market?

Yes. According to management, the restoration following the debt settlement has resulted in a stable power supply. However, future reliability depends on consistent payment of ongoing monthly bills by the market management on behalf of the traders (until individual metering is complete) and by traders individually afterward.

What is being done about the illegal connections?

The primary solution is the ongoing project to install individual electricity meters for every single shop. This makes each trader directly accountable for their consumption and eliminates the possibility of hidden, unbilled usage.

Will my electricity bill go up with individual meters?

Potentially, yes. Under the old system, many traders benefited from (and participated in) a system of widespread illegal connections and unbilled usage, which artificially suppressed their costs. With accurate metering, you will pay for what you actually use. The goal is a fair, transparent, and sustainable system for all.

What are the dangers of illegal connections?

They are extremely hazardous. They often involve substandard wiring, cause circuit overloads, and are a leading cause of fire outbreaks in markets. They also result in huge financial losses for the utility company, which can lead to higher tariffs for all consumers.

Conclusion: A New Chapter for Kejetia Market

The settlement of Kejetia Market’s legacy electricity debt is a critical milestone. It resolves a major financial and operational crisis, paving the way for renewed commercial vibrancy in Ghana’s largest market. However, the true test of sustainability lies ahead. The success of the individual metering program will determine whether Kejetia can transition to a transparent, accountable, and safe energy consumption model. This requires unwavering commitment from market management, cooperation from the thousands of traders, and strict enforcement from ECG and regulatory bodies. If executed well, Kejetia can set a precedent for other major markets across West Africa grappling with similar utility debt and illegal connection challenges.