Contractor key information for NCA registration in Kenya.

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A contractor who is carrying out construction operations in Kenya needs to be registered with NCA. The National Construction Authority is responsible for issuing contractor certificates. Equally important, all contractor registration applications are done via the NCA online portal. This license depends on the nature of your construction work. There are different categories of contractors, ranging from NCA 1 to NCA 8. Foreign contractors can only register under NCA 1, while NCA 2 to NCA 8 is reserved for local contractors. At Anziano Consultants, we assist in registering your construction business and facilitate your contractor registration under the appropriate NCA category. Moreover, we provide advisory services to help you qualify for or upgrade to a specific NCA category.

Categories of NCA in Kenya.

• NCA 1. Unlimited contract value for contractor (buildings), electrical/mechanical engineering services, and road, water, and other civil works.
• NCA 2. For contract values up to KS 500,000,000 contractor (buildings), up to KS 250,000,000 (electrical/mechanical engineering services), and up to 750,000,000 (road, water, and other civil works).
•  NCA 3. For contract values up to KS 300,000,000 contractor (buildings), up to KS 150,000,000 (electrical/mechanical engineering services), and up to KS 500,000,000 (road, water, and other civil works).
• NCA 4. For contract values up to KS 200,000,000 contractor (buildings), up to KS 100,000,000 (electrical/mechanical engineering services), and up to KS 300,000,000 (road, water, and other civil works).
• NCA 5. For contract values up to KS 100,000,000 contractor (buildings), up to KS 50,000,000 (electrical/mechanical engineering services), and up to KS 200,000,000 (road, water, and other civil works).
• NCA 6. For contract values up to KS 50,000,000 contractor (buildings), up to KS 20,000 (electrical/mechanical engineering services), and up to 100,000,000 (road, water, and other civil works).
• NCA 7. For contract values up to KS 20,000,000 contractor (buildings), up to KS 10,000,000 (electrical/mechanical engineering services), and up to KS 50,000,000 (road, water, and other civil works).

• NCA 8. For contract values up to KS 10,000,000 contractor (buildings), up to KS 5,000,000 (electrical/mechanical engineering services), and up to KS 20,000,000 (road, water, and other civil works).

Classes of works under NCA.

1. Water and roads, classified under civil engineering works
2.  Mechanical and electrical are classified under specialist engineering services
3. Building engineering works

Contractors intending to undertake construction works under specialist subclasses must acquire licenses from respective authorities, as shown below.

1. Electrical Installations licensed by Energy and Petroleum Regulatory Authority (EPRA)
2. Generating Plants, Lifts, and Escalators licensed by the Energy and Petroleum Regulatory Authority (EPRA)
3. Radio Communication licensed by the Communications Authority of Kenya (CA)
4. Structural Cabling licensed by the Communications Authority of Kenya (CA)       
5. Telecommunication (PABX, Intercoms and Telephone Wiring) licensed by the Communications Authority of Kenya (CA)

Requirements of registering as a local contractor.

• A certified copy of the company registration certificate, trust deed, or partnership deed is required.
• Details of director shareholders, such as IDs and KRA pin
• Academic certificates and testimonials for the technically qualified directors.
• Academic certificates and testimonials for the technically qualified staff
• A valid KRA Tax Compliance Certificate (TCC)
• A valid copy of the business permit
• Proof of the existence of a bank account in the construction company’s name.
• Three years audited accounts.

Registering as a foreign contractor.

A foreign contractor means any company incorporated outside Kenya or also a Kenyan company whose 51% shares are held by a foreigner. In case it’s a foreigner, you must seek registration with the National Construction Authority after issuance of an award letter and before signing the contract. Moreover, they should only undertake construction works or projects with a value limit of category NCA 1.

Foreign contractors regulations.

Section 18(1-5) of the National Construction Authority Act of 2011 outlines the following provisions for you as a foreign contractor.

The board of NCA can approve a foreign company to conduct construction activities in Kenya within a specified time if:

1. The company will operate in Kenya solely to complete the specific works it was contracted for within the value limit of category NCA 1.
2. It has a certificate of compliance from the registrar of companies showing that before entering Kenya, it used to trade as a contractor in the capacity that satisfies the Board with respect to its suitability to serve the public as a qualified contractor.
3. The company has lodged an affidavit with the Board stating that it will wind up the business once the contracted works are completed and the defects liability or maintenance period has ended. It shall also not engage itself in Kenya’s construction business.
4. The Board may require an applicant under this section to appear before it and produce documentary evidence of its competence in executing construction works immediately before it enters Kenya.

Regulation 12 of the National Construction Authority Regulations 2014 further provides that the foreign firm(s) grant an undertaking in writing that the foreign person or firm:

• The company shall subcontract or form a joint venture with a local person or firm for at least 30% of the contract work value for which it seeks temporary registration. In addition, the subcontracts or joint ventures should be with NCA-registered contractors who meet the threshold for the contract works awarded to them.
• Additionally, it shall transfer technical skills not available locally to a local person or firm in such a manner as the authority may determine from time to time.

Requirements for registering as a foreign contractor.

• Certificate of Compliance (From Registrar of Companies)
• Provide a List of Directors/Shareholders
• KRA Tax Compliance Certificate
• Asset ownership documents
•  3 years of audited accounts
• Current Business License
• Valid work permits for directors and staff who are foreign nationals
• Proof of contract award

Continuous professional development

As per Section 14 of the National Construction Authority Act 2011, a licensed contractor or a qualified partner/director must attend at least one Authority-recognized Continuous Professional Development event annually. Notably, the Authority shall consider attendance when determining an application to renew or upgrade the contractor.

Renewal of contractor’s license.

The contractor’s practicing license remains valid for one year from its issuance, and the contractor must submit the renewal application at least 30 days before the license expires.

Fees.

The NCA outlines the charges for applying various NCA categories, classes of works, and renewal of various licenses.