How to start a construction company in Kenya
How to start a construction company in Kenya
As an entreprenur with a passion for building and wondering how to start a construction company in Kenya,this comprehensive guide is here to equip you with the knowledge and steps you need to turn that dream into a reality.The construction industry in Kenya is thriving! Fueled by infrastructural development and a growing urban population, the demand for skilled builders and reliable construction companies is at an all-time high.
Steps on How to start a construction company in Kenya
This blog post is your one-stop resource, taking you through the entire process of starting a construction company in Kenya, from navigating legal requirements to securing your first project. We’ll break down the process into clear, actionable steps, ensuring you understand the essentials at every stage.
First step on How to start a construction company in Kenya
Step one: Business plan
Before starting your construction company journey in Kenya (2024), a well-defined business plan serves as your roadmap to success. This step involves actively identifying your niche (residential, commercial, etc.) and targeting your ideal market through thorough market research. Analyze the competition, market trends, and potential challenges to develop a strategic plan. To ensure financial viability and attract potential investors, develop comprehensive financial projections that outline startup costs, operational expenses, and projected revenue for your Kenyan construction company.
Step 2: Register your Business with the company registry in Kenya
- The first decision involves selecting a business structure that aligns with your liability preferences and growth aspirations;
- Register Your Business with the Registrar of Companies- Kenya has a streamlined online business registration process through the e-Citizen. This user-friendly platform allows you to register your company electronically, saving time and simplifying the process.
- For a step by step guide on company registration in Kenya visit this page or reach out to us for assistance
Step 3. Register the company with the Kenya Revenue Authority and open a business bank account.
Step 4: Obtain Business Permits: Kenyan construction company permits
Once your company is registered, secure the necessary permits to operate legally within Kenya. This may include:
- Building Permit: Required for any construction project, obtained from the relevant county authorities.
- Single Business Permit: A centralized permit issued by your county government, allowing you to conduct business within the county.
The National Construction Authority
The National Construction Authority (NCA) plays a crucial role in regulating the construction industry in Kenya. Here’s a breakdown of key NCA guidelines to consider when starting a construction company in Kenya (2024):
NCA Registration:
- Mandatory for Operation: According to Section 15 of the National Construction Authority Act No. 41 of 2011, operating a construction company in Kenya requires mandatory registration with the NCA.
- Benefits: Registration allows you to bid on government tenders, access training and development opportunities offered by the NCA, and operate legally within the Kenyan construction sector.
NCA Registration Requirements in Kenya
The specific requirements for NCA registration may vary depending on the category of construction work your company intends to undertake. The NCA classifies construction works into eight categories (NCA 1 being the highest and NCA 8 the lowest).
Here are some general NCA registration requirements:
- Company Registration Documents: A copy of your Certificate of Incorporation and valid business permits.
- Academic Qualifications: Proof of academic qualifications (degrees, diplomas) for relevant technical directors and staff.
- Tax Compliance: A valid Kenya Revenue Authority (KRA) Tax Compliance Certificate (TCC).
- Experience: Proof of past experience/ongoing projects for the company (if applicable).
- NCA Fees: Payment of applicable registration fees based on your chosen NCA category.
Additional Considerations:
Depending on the specific nature of your construction projects, you may need to acquire additional permits. Some examples include:
- Electrical Permit: Required for any electrical work on a construction site.
- Plumbing Permit: Necessary for all plumbing installations and modifications.
- Environmental Impact Assessment (EIA) License: Mandatory for large-scale construction projects with potential environmental impact
- NCA Website: The NCA website provides detailed information on registration procedures, downloadable forms, and category-specific requirements.
Remember: Consulting with a qualified advisor familiar with NCA regulations is highly recommended for how to start a construction company in Kenya. They can guide you through the specific requirements for your chosen construction category, ensure your application adheres to all NCA guidelines, and guarantee you start your construction company on the right foot.
For free consultation . Feel free to reach out to us.
