National Construction Authority registration in Kenya is a legal precondition to carrying on business as a contractor. The National Construction Authority (NCA) is established under the National Construction Authority Act, 2011 (Act No. 41 of 2011), and the Act makes unregistered contracting a criminal offence. This guide explains who must register, what the Board looks at, how foreign contractors are treated, and the penalties and appeal routes the Act provides.
The NCA and Its Mandate
Section 3 establishes the Authority, and section 5(1) states its object as overseeing the construction industry and coordinating its development. Among the functions listed in section 5(2), the NCA prescribes the qualifications for registration as a contractor, accredits and registers contractors and regulates their professional undertakings, accredits and certifies skilled construction workers and site supervisors, promotes quality assurance, and enforces the prescribed Building Code. Section 23A, added in 2020, requires the Authority to carry out mandatory inspections of construction sites at any time. The NCA’s own website also announces mandatory registration and monitoring of construction projects through its online project registration platform, so a project owner should check project-level obligations as well as contractor registration.
Who Must Register
Section 15(1) provides that no person may carry on the business of a contractor unless registered by the Board under the Act. For a firm, section 15(2) makes it eligible if at least one partner or director has the technical qualifications, skills or experience that the Board prescribes from time to time. Section 16 defines what it means to carry on business as a contractor, so a firm that is unsure whether its work falls within the definition should read that section and take advice before it starts work.
Applying for Registration
Section 17 lets a person or firm apply to the Board for registration as a contractor. The application must be in the prescribed form, accompanied by the prescribed fee, and must show to the Board’s satisfaction that the person, or at least one director or partner of a firm:
- holds the minimum technical qualifications and skills the Board prescribes for the class of contract works in question;
- has the necessary experience the Board prescribes in construction, erection, installation, alteration or connected work; and
- has professional and general conduct that satisfies the Board.
The Board therefore assesses registration by class of works. The classes, the categories within each class, the contract value ceilings and the fees are set by the Board and are not fixed in the Act. Confirm the current classes, ceilings and fees with the NCA before you apply.
Practical preparation matters. Have the incorporation documents, KRA PIN, county business permit, details of the qualified director or partner, and evidence of completed projects ready for review. The NCA considers technical staffing and experience, not only paper capital.
Registers and Evidence of Registration
Section 19 requires registers of contractors to be kept, and section 20 provides for publication of the registers and lists. Under section 21, publication is prima facie evidence of registration. In practice that means a client or procuring entity can check the published register, and a contractor should make sure its entry is accurate and current.
Foreign Contractors
Section 18 deals with foreign contractors. The Board may accredit a firm incorporated outside Kenya to carry out construction works in Kenya for a prescribed period. The firm must satisfy the Board that it intends to be present in Kenya only for the specific works it has been contracted for, that the sum payable is not less than the sum the Board prescribes for the class of works, that it holds a certificate of compliance from the Registrar of Companies showing its trading capacity, and that it has lodged an affidavit committing to leave once the contracted work is done. A foreign group that plans a continuing presence in Kenya should consider a local subsidiary and ordinary registration rather than project-by-project accreditation.
Penalties for Unregistered Contracting
Section 15(3) provides that a person who carries on the business of a contractor without registration commits an offence. On conviction the person is liable to a fine of up to KES 1 million, or imprisonment of up to three years, or both. For a continuing offence there is a further fine of up to KES 100,000 for every day or part of a day on which the offence continues.
Suspension, Deletion and Appeals
Section 24 allows the Board to suspend a contractor who has been convicted of an offence under the Act, who is found after inquiry to be guilty of improper or disgraceful conduct or gross professional misconduct, or who has breached the Authority’s regulations or by-laws. The Board can also caution or censure a registered contractor. Section 22 provides for an inquiry into the conduct of contractors, and section 25 allows deletion of a name from the register. Section 27 establishes the National Construction Appeals Board, which hears appeals against these decisions. A contractor facing suspension or deletion should act quickly on the inquiry process, because the appeal route follows the Board’s decision.
The Construction Levy
Under section 31, the Cabinet Secretary may by Gazette notice impose a construction levy on construction work carried out by persons registered under the Act. The levy is capped at the equivalent of 0.5% of the value of any contract exceeding KES 5 million. Contractors should build the levy into pricing on larger contracts.
How We Can Help
Clay & Associates Advocates advises contractors, developers and foreign construction firms on NCA registration, construction contracts and regulatory disputes. See our regulatory and compliance practice or contact us to discuss your registration.
Sources: National Construction Authority Act, 2011, sections 3, 5, 15 to 25, 27 and 31; National Construction Authority website.
Frequently asked questions
Is NCA registration compulsory for contractors in Kenya?
Yes. Section 15(1) bars anyone from carrying on the business of a contractor unless registered by the NCA Board.
What is the penalty for contracting without NCA registration?
A fine of up to KES 1 million, or up to three years’ imprisonment, or both, plus up to KES 100,000 for each day the offence continues (section 15(3)).
Can a foreign contractor work in Kenya without a local company?
Section 18 lets the Board accredit a foreign firm for specific contracted works for a prescribed period, subject to conditions including an affidavit to leave when the work ends.
Where do I appeal a suspension or deletion?
To the National Construction Appeals Board established under section 27.
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This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.
