How to apply to be a contractor in Kenya

To be able to practice as a contractor in Kenya one needs to be registered as a contractor by the National construction authority.

The procedure for registration is stipulated in the National construction authority act no 41 of 2011.

What you need

• Application form. The application documents are available from NCA website.
• Register your company with the registrar of companies. One needs to acquire a certificate of incorporation either as a limited company , partnership or sole proprietorship
• The requisite Application fees
• One member, director or partner of the firm must be holder of the minimum technical qualifications and skills prescribed by the Board for the class of contract works in respect of which registration is sought for. They must experience prescribed by the Board in works involving construction, erection, installation, alteration or any other activity connected with construction works .Has professional and general conduct which in the opinion of the Board, makes the person suitable to be registered under this Act; and poses the necessary plant and equipment for the category of works for which the registration is sought.
• All the directors must forward their CV’s to the National construction authority
• Valid PIN, VAT and Income Tax compliance certificates, and Bank Account: The contractor applying to operate in Kenya must also prove tax compliance by means of submitting these documents to National Construction Authority (NCA). The bank account should be opened under name of the contractor company and evidence for the bank account is required.
• Foreign contractors are issued with permission to operate for a specific period of time and will be required to prove that they are in the country for that given to undertake a project. They should not undertake another project after the one specified or targeted is completed and they will be required to launch an affidavit with the authority that this will not happen.
• Foreign contractors willing to operate in Kenya are also required to submit a commitment to transfer skills not with locals and as can be determined by National Construction Authority from time to time.
• A Certificate of Registration is issued on registration as a contractor in Kenya. This certificate remains the property of the authority.

Reasons for refusal to register one as a contractor

The Board of the National Construction Authority reserves the right to admit one as constrictor.  When they refuse to register they will communicate the same to the applicant .They will do that if in their opinion if the person

• Does not meet the conditions stated in subsection (2);
• Is a member of a consulting firm providing architectural, quantity surveying or engineering services, unless the person declares interest during the application for registration and does not carry out functions of consultancy and construction in the same project unless expressly specified;
• Is a person whose registration as a contractor shall result in conflict of interest with his employer?

National Construction Authority Contractor Grades.

Contractors are allowed to register in more than one category NCA regulations allow a contractor to register in one or more categories according to class of construction works to be undertaken.

NCA1: Unlimited contract value: which has various classes: Unlimited contract value [Contractors – Building] Unlimited contract value [Specialist Contractors] Unlimited contract value [Roads and other Civil Works]

NCA2: Up to 500, 000, 000 [Contractors – Building], Up to 250, 000, 000 [Specialist Contractors], Up to 750, 000, 000 [Roads and other Civil Works].

NCA3: Up to 300, 000, 000 [Contractors – Building] Up to 150, 000, 000 [Specialist Contractors] Up to 500, 000, 000 [Roads and other Civil Works]

NCA4: Up to 200, 000, 000 [Contractors – Building] Up to 100, 000, 000 [Specialist Contractors] Up to 300, 000, 000 [Roads and other Civil Works]

NCA5: Up to 100, 000, 000 [Contractors – Building] Up to 50, 000, 000 [Specialist Contractors] Up to 200, 000, 000 [Roads and other Civil Works]

NCA6: Up to 50, 000, 000 [Contractors – Building] Up to 20, 000, 000 [Specialist Contractors] Up to 100, 000, 000 [Roads and other Civil Works]

NCA7: Up to 20, 000, 000 [Contractors – Building] Up to 10, 000, 000 [Specialist Contractors] Up to 50, 000, 000 [Roads and other Civil Works]

 

Contractor Registration fees

Local Kenyan contractors will be required to pay a fee between of Ksh. 10, 000 – 50, 000 based on their category in order to register. They will be required to pay between Ksh. 5, 000 and Ksh. 10, 000 to renew their license annually.

Foreign contractors wishing to o register with the National Construction Authority to operate in Kenya will pay a registration fee of 100, 000 Kenyan shillings and need to only undertake tenders they win. Those seeking temporary registration will need to commit to sub-contracting “not less than 30% of the value” of contract to local contractors.

Foreign contractors are not cleared for the NCA1 category, in an attempt to protect local contractors from foreign companies.

 

Sources:

1. http://constructionreviewonline.com/2015/06/registration-of-contractors-in-kenya-national-construction-authority/
2. http://kenyalaw.org/kl/fileadmin/pdfdownloads/Acts/NationalConstructionAuthorityAct_No41of2011.pdf  page 11