Here’s a step-by-step guide on starting a construction company in Kenya:
1. Conduct a Name Search
- Perform a name search on the e-Citizen portal to ensure your chosen business name isn’t already in use.
- The search costs Ksh 150 per name, and the chosen name will be reserved for 30 days. Register the name within this period.
2. Draft a Memorandum and Article of Association
- Memorandum of Association: Defines the objectives, scope, and structure of the company.
- Article of Association: Acts as the company’s constitution, outlining regulations, director powers, and responsibilities.
3. Apply for Company Registration
- Log in to the e-Citizen portal to fill out and submit the company registration form. The Registrar of Companies handles company registrations.
- The standard fee is Ksh 10,650, and requirements vary depending on the type (e.g., limited company, sole proprietorship, partnership).
- Upon successful registration, you’ll receive:
- Certificate of Incorporation
- CR12 Document
- KRA PIN
- NHIF and NSSF numbers
4. Register with the National Construction Authority (NCA)
- Register the company with the NCA after receiving the Certificate of Incorporation.
- Be aware of NCA’s seven categories (NCA1 to NCA7), each with different requirements and fees.
- NCA1: Requires at least one director with a degree in building and construction.
- NCA7: Requires one director to have a trade test certificate.
- Fees: Registration fees range from Ksh 10,000 to Ksh 50,000, and annual license renewal fees are between Ksh 5,000 and Ksh 10,000, depending on the category.
- Documents Required:
- Certificate of Incorporation
- Director’s IDs, CVs, KRA PINs, and Tax Compliance Certificates
- Bank account proof (in the company’s name)
- VAT Certificate
5. Apply for a Business Permit
- Obtain a business permit from your county government (some counties offer online applications).
Contact Information for the National Construction Authority:
- Headquarters: 9th Floor, KCB Towers, Kenya Road, Upperhill, Nairobi
- Phone: 0709 121 102/172/173
- Email: [email protected]
This process will set you on a path to legally establishing and operating a construction business in Kenya.
