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.
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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.
- A duly registered firm with the Registrar of Companies either as a limited liability company, partnership or sole proprietorship
- Academic certificates and testimonials for the technically qualified directors
- CR 12
- Certified copy of current business license
- If applying for Electrical Engineering, attach a certificate from the Energy Regulatory Commission (ERC)
- Copy of company registration certificate; certificate of registration/ certificate of incorporation
- Three years audited accounts and other relevant financial information
- Certified copied proving ownership of assets
- KRA Tax compliance certificate
- 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.
- Visit NCA website
- Hover on the ‘Contractors’ tab, then select ‘Register to be a contractor’. This will take you to the registration portal
- Click on ‘Register’ and register your account by filling in the requested information in each field
- Log into your account with the National ID/ Passport Number and password used during registration
- Click on the ‘New Application’ tab, then click on ‘New Contractor registration’
- Click to view the application requirements and submit the listed documentation
- 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
- In your account, you will be required to key in the Bank Slip transaction number or the M-Pesa transaction number after payment
