The Kumasi Metropolitan Assembly (KMA) says it exceeded its internally generated revenue target in 2025 but warned that rising sanitation costs had sharply distorted spending and limited investment in infrastructure.

Metropolitan Chief Executive Richard Ofori-Agyeman Boadi told the Assembly that total revenue performance reached 102.9 million Ghana cedis, representing 80.6% of the annual target of 127.7 million cedis.

He said internally generated funds (IGF) outperformed expectations, rising to 42.75 million cedis against a target of 39.82 million cedis.

“Finance remains the lifeblood of this Assembly. While we faced challenges, our revenue mobilisation efforts remained strong, particularly in our internally generated funds,” Boadi said in a sessional address on Monday (25 May).

The Mayor said improved collection systems, including digital billing and tighter supervision of revenue staff, helped boost compliance across key streams such as business operating permits, land-related fees, and market levies.

He said land permitting revenues exceeded targets by 67%, while fines and penalties rose by more than 56%, reflecting stricter enforcement and improved administrative efficiency.

Overall revenue grew by 15.8% year-on-year, with IGF rising by 20.7%, he added.

However, Boadi cautioned that spending patterns had shifted significantly away from planned budget allocations due to mounting sanitation pressures in the metropolis.

He said compensation and goods and services accounted for 97% of total expenditure, while capital investment dropped to just 3%, far below the planned 29%.

“This deviation is not what we budgeted for. It reflects the reality of urgent sanitation demands that we could not ignore if we are to maintain public health and environmental safety,” he said.

He warned that the trend risked undermining long-term development if not addressed through more sustainable waste management systems.

“We cannot continue to prioritise recurrent sanitation spending at the expense of infrastructure. We must find lasting solutions that free up fiscal space for capital investment,” he said.

The Assembly said it had rolled out an electronic billing system in early 2026 to reduce revenue leakages, improve accuracy, and enhance taxpayer compliance.

Officials said the digital platform had helped resolve disputes over boundaries and reduced instances of unauthorised collection of fees.

KMA said it would expand monitoring of revenue operations and deepen public engagement as part of efforts to strengthen its financial base in 2026.