I’ve been researching how to start a construction company in Kenya, and I realized there are several steps involved from business registration to getting licensed by the regulator.
If you want to enter the construction industry, here’s a clear and practical guide to help you set up your company properly.
Quick Answer
To start a construction company in Kenya, conduct a name search, register your company on eCitizen, register with NCA, get a business permit, and meet all compliance requirements.
Who Regulates Construction Companies in Kenya?
The National Construction Authority (NCA) oversees:
- Registration of contractors
- Licensing and classification
- Regulation of the construction industry
Step-by-Step: How to Start a Construction Company in Kenya
Step 1: Conduct Business Name Search
Carry out a name search on eCitizen to confirm availability.
👉 Cost: KSh 150 per name
👉 Name is reserved for 30 days
Step 2: Draft Memorandum and Articles of Association
Prepare:
- Memorandum of Association (company objectives)
- Articles of Association (rules and governance)
Step 3: Register the Company on eCitizen
Submit your company registration application via eCitizen portal.
👉 Cost: KSh 10,650 (standard fee)
After approval, you will receive:
- Certificate of Incorporation
- CR12
- KRA PIN
- NHIF & NSSF registration
Step 4: Register with NCA (Contractor Registration)
Apply for registration with the NCA.
Choose NCA Category
Categories range from:
- NCA1 (large contractors)
- To NCA7 (small contractors)
👉 Requirements vary:
- NCA1 → Degree in construction
- NCA7 → Trade test qualification
Submit Required Documents
Include:
- Certificate of incorporation
- Company bank account details
- Directors’ IDs and CVs
- KRA PIN & tax compliance certificate
- VAT certificate
👉 Fees:
- Registration: KSh 10,000 – 50,000
- Renewal: KSh 5,000 – 10,000 annually
Step 5: Apply for Business Permit
Apply for a county business permit from your local county government.
Extra Tips and Best Practices
- Start with a category like NCA7 if you are new
- Ensure your documents are complete and valid
- Build a skilled technical team
- Maintain proper financial records
- Follow all construction safety regulations
Common Mistakes to Avoid
- Skipping NCA registration
- Choosing the wrong contractor category
- Submitting incomplete documents
- Ignoring tax compliance requirements
- Operating without a business permit
FAQ
How much does it cost to start a construction company in Kenya?
Costs vary, but include registration, NCA fees, and permits.
Do I need NCA registration to operate?
Yes, it is mandatory.
Can I start small in construction?
Yes, you can begin under NCA7 category.
Conclusion
Starting a construction company in Kenya is a great opportunity if you follow the correct steps. Register your business, comply with NCA requirements, and obtain all necessary permits to operate legally.
