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How to register as a contractor in Kenya

Victor Mochere by Victor Mochere
in Life Hacks
Reading Time: 6min read
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How to register as a contractor in Kenya

A contractor is a person or firm that undertakes a contract to provide materials or labour to perform a service or do a job. He/she is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of a building project. The National Construction Authority (NCA), is the institution mandated to register contractors and to keep a register of builders cleared to work in Kenya.

Contents

  • Categories of registration according to value limits
  • Requirements for registration as a contractor in Kenya
  • Registration fees
  • Procedure for registration as a contractor in Kenya

Categories of registration according to value limits

According to the NCA rules and regulations, a contractor may be registered for several categories of construction works but may hold only one category of registration in relation to a particular class of construction works.

a. Building works

No.

Category

Value limit

1.

NCA1

Unlimited

2.

NCA2

Up to Ksh 500 million

3.

NCA3

Up to Ksh 300 million

4.

NCA4

Up to Ksh 200 million

5.

NCA5

Up to Ksh 100 million

6.

NCA6

Up to Ksh 50 million

7.

NCA7

Up to Ksh 20 million

8.

NCA8

Up to Ksh 10 million

b. Electrical/Mechanical engineering services

No.

Category

Value limit

1.

NCA1

Unlimited

2.

NCA2

Up to Ksh 250 million

3.

NCA3

Up to Ksh 150 million

4.

NCA4

Up to Ksh 100 million

5.

NCA5

Up to Ksh 50 million

6.

NCA6

Up to Ksh 20 million

7.

NCA7

Up to Ksh 10 million

8.

NCA8

Up to Ksh 5 million

c. Roads, water and other civil works

No.

Category

Value limit

1.

NCA1

Unlimited

2.

NCA2

Up to Ksh 750 million

3.

NCA3

Up to Ksh 500 million

4.

NCA4

Up to Ksh 300 million

5.

NCA5

Up to Ksh 200 million

6.

NCA6

Up to Ksh 100 million

7.

NCA7

Up to Ksh 50 million

8.

NCA8

Up to Ksh 20 million

Requirements for registration as a contractor in Kenya

Here are the NCA requirements to register as a contractor in Kenya.

  1. A duly registered firm with the Registrar of Companies either as a limited liability company, partnership or sole proprietorship
  2. Academic certificates and testimonials for the technically qualified directors
  3. CR 12
  4. Certified copy of current business license
  5. If applying for Electrical Engineering, attach a certificate from the Energy Regulatory Commission (ERC)
  6. Copy of company registration certificate; certificate of registration/ certificate of incorporation
  7. Three years audited accounts and other relevant financial information
  8. Certified copied proving ownership of assets
  9. KRA Tax compliance certificate
  10. Contractors association membership certificate

Registration fees

Local contractors pay registration charges of between Ksh 5,000 and Ksh 100,000 depending on their categories, while annual practice license renewal costs between Ksh 2,500 and Ksh 30,000. Foreign contractors pay a registration fee of Ksh 250,000 and are restricted to categories of tenders they win. Foreign contractors applying for temporary registration are required to commit to sub-contract “not less than 30 per cent of the value” to local contractors.

No.

Type of application

Kenyan contractors

Foreign contractors

1.

New application

Ksh 5,000

$500

2.

Upgrading class of contractors

Ksh 5,000

$500

3.

Appeals

Ksh 5,000

$500

REGISTRATION

 

Category

1.

NCA1

Ksh 100,000

$2,500

2.

NCA2

Ksh 75,000

 

3.

NCA3

Ksh 50,000

4.

NCA4

Ksh 25,000

5.

NCA5

Ksh 20,000

6.

NCA6

Ksh 15,000

7.

NCA7

Ksh 10,000

8.

NCA8

Ksh 5,000

ANNUAL RENEWAL FEES

 

Category

1.

NCA1

Ksh 30,000

$1,500

2.

NCA2

Ksh 25,000

 

3.

NCA3

Ksh 20,000

4.

NCA4

Ksh 15,000

5.

NCA5

Ksh 12,000

6.

NCA6

Ksh 10,000

7.

NCA7

Ksh 5,000

8.

NCA8

Ksh 2,500

CHARGES OF DEFAULTERS OF RENEWAL

 

Category

1.

NCA1

Ksh 90,000

$4,500

2.

NCA2

Ksh 75,000

 

3.

NCA3

Ksh 60,000

4.

NCA4

Ksh 45,000

5.

NCA5

Ksh 36,000

6.

NCA6

Ksh 30,000

7.

NCA7

Ksh 15,000

8.

NCA8

Ksh 10,000

SKILLED CONSTRUCTION WORKERS AND CONSTRUCTION SITE SUPERVISORS

1.

Skilled construction workers

Ksh 1,000

 

2.

Construction site supervisors

Ksh 2,000

Charges for non-registered contractors

Ksh 300,000

$7,500

Procedure for registration as a contractor in Kenya

Here is the NCA procedure to register as a contractor in Kenya.

  1. Visit NCA website
  2. Hover on the ‘Contractors’ tab, then select ‘Register to be a contractor’. This will take you to the registration portal
  3. Click on ‘Register’ and register your account by filling in the requested information in each field
  4. Log into your account with the National ID/ Passport Number and password used during registration
  5. Click on the ‘New Application’ tab, then click on ‘New Contractor registration’
  6. Click to view the application requirements and submit the listed documentation
  7. After submission of the online registration application, an invoice will be sent to your email address used during registration with the amount to be paid and mode of payment. You will receive a text message on the phone number used during registration notifying you of the sent invoice
  8. In your account, you will be required to key in the Bank Slip transaction number or the M-Pesa transaction number after payment

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Victor Mochere

Victor Mochere

Victor Mochere is an award winning blogger, social media influencer, literati savant, altruistic, and a netpreneur creating and marketing digital content.

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