This is a step by step guide on how to start a construction company in Kenya. The construction industry in Kenya is one of the most lucrative sectors that one can venture in. It is full of opportunities with impressive returns.
The National Construction Authority (NCA) is the body that regulates the construction industry in Kenya and coordinates its development.
Here is a step by step guide on how to start a construction company in Kenya.
1. Conduct a name search.
- A name search is carried out to ensure that no other business uses the name you have in mind.
- The process can be done via the e-citizen portal at a cost of Kshs 150 per name. It takes about one day and once you find a suitable name, the name will be reserved for 30 days. You will have to register the name before the 30 days period elapses.
2. Draft a memorandum and article of association.
- A memorandum of association defines the objectives, scope of activities and structure of the company.
- An article of association acts as a company’s constitution. It defines the regulations that will govern the company, including the powers and responsibilities of the directors of the company.
3. Apply for registration of the company.
- On the e-citizen portal, fill and submit your company registration application form. The Registrar of companies is in charge of registration of companies.
- The standard registration fee is Kshs 10,650. Requirements for registration depend on the type of company being established, for example, limited company, sole proprietorship, partnership…etc.
- Once the application is successful, you will obtain a Certificate of Incorporation, CR12, KRA PIN, NHIF and NSSF number. All the documents will be obtained online via the e-citizen portal.
4. Register with National Construction Authority (NCA).
- Once you have been issued with a Certificate of incorporation, you will have to register the company with NCA.
- Requirements for registration vary depending on category. This means that you need to be aware of the various categories or classes of construction. NCA has 7 categories/classifications. This ranges from NCA1 to NCA7.
- For a company registered under NCA1 category, one of its director needs to have a degree in building and construction. For NCA7, one of the directors needs to atleast have a trade test.
- Registration fee and annual license renewal fee charged varies across the categories mentioned above, from NCA1 to NCA7. This ranges from Kshs 10,000-50,000 for registration and Kshs 5,000-10,000 for license renewal.
- During registration, you will also be required to submit proof of a bank account opened in the name of the company, copies of registration certificate, ID, tax compliance certificate, KRA PIN, VAT certificate and CVs of directors.
5. Apply for a business permit.
- The business permit will be applied from your respective county government. For some counties, the service can be accessed online via their respective county websites.
National Construction Authority Contacts
Headquarters: 9th Floor, KCB Towers, Kenya Road, Upperhill Area, Nairobi.
Contact: 0709 121 102/172/173.