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Start a Construction Company in Kenya

construction company in Kenya
August 29, 2023

construction company in Kenya

Construction company in Kenya – Construction stands as one of the most lucrative sectors in Kenya. In recent times, the nation has undergone substantial urban growth and development, resulting in a substantial need for diverse construction ventures like residential, commercial, and infrastructure projects.

The emphasis on enhancing infrastructure, encompassing areas like roads and housing, has generated prospects for both domestic and international investors.

Nonetheless, achieving success in this industry necessitates meticulous planning, a profound understanding of local market intricacies, and adherence to regulatory protocols.

v  Here at Afrisetup, we take pride in accompanying our clients throughout the entirety of the journey, offering guidance at every phase. Each client comes with an open inquiry, and we offer tailor-made counsel, proficiency, and wisdom to accomplish specific objectives.

We can help you register your construction company in Kenya, and obtain relevant permits and licenses in Kenya. Contact us Today

 Process of Registering a Construction Company in Kenya

 The process to register a construction company in Kenya is straightforward. The following are the steps to follow:

 Step 1: Company Name Reservation

Provide three distinct names for the intended company. The eligible name will be secured for reservation.

 Step 2: Company Incorporation Process

 Once the duly completed company registration forms are submitted, they will undergo assessment and approval by the Registrar of Companies. Following approval, the company will receive the Certificate of Incorporation, CR 1 form, Statement of Nominal Capital, as well as CR 12, CR 8, and CR 2 forms.

Step 3: Tax Registration

 For every legally registered business, a Personal Identification Number (PIN) registration is necessary. This PIN serves as a unique identification code that distinguishes you for the intention of engaging in business transactions with entities like the Kenya Revenue Authority, various government bodies, and service suppliers.

Step 4: Bank Account Opening

Establishing a company bank account is crucial for conducting financial activities like collecting payments from clients, settling payments to suppliers, and fulfilling tax obligations.

 Step 5: Acquire a Consolidated Business License

The unified business permit, formerly referred to as the single business permit, is a license that combines all the necessary permits for operating a business within the specific county. This encompasses licenses for trading, fire clearance, advertising signage, health compliance, and food hygiene. This process is carried out within the boundaries of your respective counties.

Stage 6: The National Health Insurance Fund

 (NHIF) is an entity under government jurisdiction. It is obligatory for every employer to enroll with NHIF as per the law. Upon registration, the employer receives a unique code from NHIF. This code is then used for the purpose of transmitting their employees’ monthly contributions to NHIF.

Step 7: National Security Social Fund

 Employers are required to register with the NSSF per the NSSF Act. Once the registrar is certified that the requirements have been met, membership certificate and code is issued. The employer ought to remit the employees contributions to the fund using the code.

 Step 8: National Construction Authority (NCA)Registration

Once you’ve obtained your certificate of incorporation, the next step involves enrolling your company with the NCA to obtain authorization for lawful contractor operations. The NCA holds the responsibility of overseeing and controlling all construction endeavors within Kenya. This governing entity employs a system of 7 classifications that vary according to the extent of work a company is permitted to engage in. This range starts from NCA 1, which holds no restrictions on contract value, and extends to NCA 7, empowered to undertake contracts with a value of up to sh20 million.

Some of the biggest construction companies in Kenya | List of construction companies in Kenya |  Contractors in Kenya

A few notable construction firms in Kenya are :

  • EPCO Builders, Seyani Brothers,
  • Landmark Holdings,
  • Intex Construction,
  • Cementers and Parbatsiyani Construction.
Frequently Ask Questions

 Two things:

  1. a) Any contractor or construction company must possess a Certificate of Incorporation (COI) issued by the Kenyan registrar of companies, which stands as a primary necessity.
  2. b) The clearance authorization granted by the National Construction Authority.

The process at the registrar of companies takes about 21 days and the process at the National Construction Authority takes about 30 Days after all duly completed documents are submitted.

Absolutely. The sector is open to both local and foreign investors.

A one-time application fee of Ksh 5,000 is payable to the government. After approval, you will be required to pay between Ksh 2500 and USD 1500 depending on the class you apply for

Application is submitted online on the official NCA portal. Kindly visit the NCA Website for more guidelines.

Similar to all other corporate entities, construction firms have the responsibility to settle corporate taxes, amounting to 37.5% for foreign company branches and 30% for domestic companies. Each individual contractor operating in Kenya is legally required to submit tax returns annually in adherence to their fiscal year.

The requirements to register the company include the following;
– Three preferred names of the proposed company.
– A summary of the company’s activities.
– Copies of all directors’ and shareholders’ passports
– Passport-sized photos of all the shareholders and directors
– Addresses, phone numbers, email addresses, and occupations of all shareholders and directors of the proposed company.
– Percentage of share apportionment

Once the company is registered, you can then process a License from the national construction authority by submitting the following requirements;

– Copy of company registration certificate and Cr12
– 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 certified copy of current business license.
– Proof of firm’s past experience/ongoing project(s) if any.
– Proof of plant, equipment and machine holdings.
– Certified copies proving ownership of assets.

The Costs varies depending on the type of company and the class you want to register. contact us today for a quote