How to Register as a Contractor in Kenya. The National Construction Authority (NCA), constituted in the laws of Kenya under Act No.41 of 2011, is a government organisation which regulates, streamlines and builds capacity in the construction industry.
NCA, allows you to register, acquire a certificate and get accreditation, in a bid to eliminate rogue contractors and malpractices in the building and construction industry.
Likewise, the authority also inspects constructions and building projects around the country, ensuring high-quality work and halting projects that pose health risks or collapse hazards.
Procedure to Register as a Contractor in Kenya
Before you try to register as a contractor with Tenders Board Secretariat in Kenya, be sure to review the information requirement to ensure you have met all the other business requirements for a contractor.This efforts is aimed at simplifying the process of registration by contractor To stay ahead of the process, general and specialty contractors must register with the Tenders Board Secretariat in Kenya.
The specify in details the registration requisites.
An Applicant is only defined as a sole -proprietorship,partnership,limited liability partnership,limited partnership or company and shall not include an individual.
Applicants who wish to apply for registration must understand these Terms of Registration and the carefully.
In submitting the application, applicants shall be deemed to have agreed to these Terms of registration.
Applicants can submit the applications online. The submissions should include every item in the checklist in the correct sequence. It is the applicants responsibility to ensure completeness of the submissions,including the provision of a valid email address.
Incomplete or non-compiled submissions may be disregarded.
Applicants will be informed if the submissions are incomplete or not in order.
The processing fees for all applications are quoted when submitting. Payment can only be accepted through Banking for all forms of online transaction. The processing fee is non – refundable irrespective of the application result.
All Contractors applying for registration are required to immediately submit the under-listed documents to the State Tenders Board Secretariat for processing:
i.Duly completed Application Form;
ii.Payment of Registration fee;
iii.Evidence of Incorporation /Registration of Business Name with the registrar of Companies (ROC);
iv.Evidence of Companys Article /Memorandum of Association;
v.Current 3 years Personal Income Tax Clearance Certificate (LIRS)of at least two (2)Directors;
vi.Bank Reference Letter;
vii.Corporate profile of the company including Curriculum Vitae of key personnel supported by Professional Licenses (where applicable);
viii.Passport Photograph of the Managing Director/Chief Executive Officer;
ix.Development Levy of at least two Directors;and
x.Evidence of remittance of Pay As You Earn Tax for key staff(Limited Liability Company)
It is to be noted that henceforth, only contractors duly registered in appropriate categories with the State Tenders Board are eligible to bid for contracts with the Kenyan State Government.
Required Documents to Register as a Contractor in Kenya
All Individuals or companies interested in Contract work and other related services are eligible provided they have registered with the Tenders Board Secretariat.
Fees to Register as a Contractor in Kenya
No payment may be made in respect of a verbal contract;
Fees payable to Consultants will not be more than the approved by the Government scales fees in force at the time;
interim payment against a contract must not exceed the value of the work done and the goods supplied to date, and, will be made only against interim certificates authenticated by the user Director for the approval of payment by the Chairman;
On all contracts (where applicable) a pre-determined percentage of the value of contract sum shall be retained by the Commission for a specific period of not less than six months from the date of taking over the completed work;
Before the final payment or retention money is released, the user Director will certify that the contract has been satisfactorily completed, that all Interim payments have been deducted, and that all defects have been satisfactorily rectified.
Valid for 3 years then renewal is required.
Under normal circumstances, if the submissions are complete and in order, it is expected that the applicants will be informed of the outcome within 2 weeks;
All Contractors must comply with the Tender Board secretariat as indicated.
Applicants submitting their applications to Tender board secretariat must adhere to the latest terms of requirements.
(i) The contract number;
(ii) the nature of the contract with details of the work to be performed or the services to be rendered;
(iii) the contract sum;
(iv) the duration or time allowed for completion;
(v) the names and address of the contractors;
(vi) the names and address of the consultants;
(vi)the basis on which payments are to be made to the contractor;
(vii)the basis on which payments are to be made to the consultants;
(viii)the contract payments schedules
(ix)the date of completion of the contract;
(x)5 per cent of the total contract sum shall be held as Retention Fee.
Need for the Document
The Basics about being a contractor in Kenya.
There is a Contractors Registry under the Tenders Board Secretariat to register all contractors who have expressed interest to be engaged by the Authority for all on tracts of works, services and purchases.
This registration exercise serve the procurement needs of government departments, statutory bodies and other public sector organizations including first level sub – contractors involved in government projects.
The Registration of contractors into various categories / classes of contracts takes into account the legal form of Business, whether it is an enterprise or limited liability company;and if limited liability company , the share capital of the company. For professional firms, the reputation of the principal partners of the firm would be considered.
As such, business entities which are not registered with Tender Board secretariat are not restricted from conducting business as contractors or suppliers outside the public sector.
External Links – Register as a Contractor in Kenya
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