Contracta Construction lays off 150 workers over payment delays on Kumasi projects

Contracta Construction UK Ltd., the firm handling major infrastructure works including the Kejetia Phase II Market redevelopment, the Komfo Anokye Maternity and Children’s Block, and the Prempeh I International Airport project, has laid off about 150 workers following prolonged inactivity on the project sites.

The decision comes after nearly two years of stalled progress, attributed largely to delays in government payments to the contractor, which have significantly slowed work on the Kumasi-based projects.

Speaking to Citi News, the company’s Public Relations and Community Liaison Consultant in Kumasi, Emmanuel Danso, said the affected workers included engineers, technicians, and labourers across the various project sites. He explained that the layoff was necessary to reduce rising operational and administrative costs amid financial constraints.

According to him, the company has received only one payment from government since 2024, a situation that has severely affected project execution and forced management to scale down its workforce.

Mr. Danso noted that although the decision was difficult, all affected workers were duly compensated before their exit.

He further disclosed that discussions are ongoing between government officials and the company’s directors in Accra to address the payment challenges and potentially resume work on the projects.

He expressed optimism that the talks would eventually lead to the recall of workers and a restart of construction activities.

“Since May 2024, we have received only one payment. So, while negotiations with the government are ongoing, it has become necessary for us to reduce our staff strength in order to ease the financial and administrative burden on the company.

Discussions are still ongoing between government officials and our directors in Accra, and we are hopeful that very soon we will be able to return to site. However, at this point, we have no option but to lay off some workers. This is not a situation where they are being sent away empty-handed,” he said.

The development has renewed concerns about prolonged delays in the flagship projects and their wider impact on employment, economic activity in Kumasi, and the delivery of critical health and transport infrastructure.

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