Last reviewed: 6 November 2026
Starting a construction business in Kenya requires more than registering a company and securing clients. Anyone intending to operate as a contractor must also meet the National Construction Authority (NCA) registration requirements and obtain a valid practising licence.
The Authority classifies contractors into different categories based on their technical and financial capacity, with separate requirements for different classes of construction work. Understanding NCA registration in Kenya helps contractors identify the appropriate category, prepare their applications and establish the types and values of projects they are authorised to undertake.
Key takeaways
- Section 15 of the NCA Act, 2011 bars anyone from carrying on the business of a contractor without NCA registration.
- There are eight contractor categories, from NCA 1 (unlimited building works) to NCA 8 (building works up to KES 10 million).
- The application fee is KES 5,000. Registration fees range from KES 5,000 (NCA 8) to KES 100,000 (NCA 1).
- Practising licences are renewed every year and require ten CPD points.
- Operating without registration can attract a fine of up to KES 1 million, up to three years’ imprisonment, or both.
Who needs NCA registration in Kenya?
Section 15 of the National Construction Authority Act, 2011 prohibits a person from carrying on the business of a contractor without registration by the NCA Board.
Under Section 16, a person generally qualifies as a contractor where they undertake construction, installation, erection or alteration work for another person in return for payment or other valuable consideration, and undertake to supply the necessary materials or labour, or control their supply.
The Act provides limited exceptions. These include work whose cost does not exceed a threshold determined by the Board and a residential house for private use that does not require structural design. Therefore, not every residential construction project is automatically exempt. Whether an exception applies depends on the nature and circumstances of the work.
Registration alone is not sufficient. The NCA also requires contractors to hold valid practising licences. These requirements form part of the wider legal framework governing construction businesses in Kenya. Explore our Construction Law practice for further information.
Understanding NCA contractor categories
The NCA has eight contractor categories, from NCA 1 to NCA 8, across different classes of construction work. NCA 1 covers the highest project values, while NCA 8 covers smaller projects. The applicable category depends on the class of work and the contractor’s assessed capacity.
The following are the NCA’s published project value limits for building works:
| Category | Maximum project value (building works) |
|---|---|
| NCA 1 | Unlimited |
| NCA 2 | KES 500 million |
| NCA 3 | KES 300 million |
| NCA 4 | KES 200 million |
| NCA 5 | KES 100 million |
| NCA 6 | KES 50 million |
| NCA 7 | KES 20 million |
| NCA 8 | KES 10 million |
These limits apply to building works only. Contractors undertaking roads, water and other civil engineering works, as well as mechanical and electrical engineering services, are subject to different value limits.
The NCA considers factors such as technical qualifications, staff, experience, equipment and financial capacity when assessing contractors for registration. Your category is therefore not simply a matter of preference. For example, an NCA 7 building contractor, whose project limit is KES 20 million, cannot undertake a KES 50 million building project under that category.
Before applying, review the NCA contractor categories and registration requirements to establish the appropriate category and applicable requirements.
What are the NCA registration requirements?
The NCA’s mandatory requirements for local contractors include:
- Company registration documents, directors’ identification documents and, where applicable, a certificate of incorporation and CR12.
- Academic certificates and testimonials for technically qualified directors and staff.
- A valid KRA Tax Compliance Certificate (TCC). Our tax advisory team can help where compliance gaps hold up a TCC.
- A certified copy of the current business licence.
Other supporting documents may include evidence of previous or ongoing projects, plant and equipment holdings, asset ownership documents and three years’ audited accounts certified by an ICPAK-registered person.
The NCA’s registration FAQs also list identification cards for NCA-accredited construction workers. Specialist contractors may require additional licences, including an EPRA licence for electrical engineering works or a Communications Authority licence for specified communications engineering works.
Review the local contractor registration requirements and contractor registration FAQs to confirm the documents applicable to your category.
How do you apply for NCA registration?
Applications for local contractor registration are submitted through the NCA’s online contractor registration portal. The general process involves:
- Creating an account on the portal and completing the application form.
- Uploading the required company, technical and financial documents.
- Paying the applicable application fee through the portal.
- Allowing the NCA to evaluate the application and determine the appropriate contractor category. Applicants in categories NCA 1 to NCA 3 should also be prepared for a premises inspection as part of the assessment process.
- Paying the registration fee after approval and following the portal instructions to obtain the registration certificate and practising licence.
The published application fee for local contractors is KES 5,000. Registration fees range from KES 5,000 for NCA 8 to KES 100,000 for NCA 1, depending on the approved category. These are separate from the annual practising licence renewal fees. Check the NCA schedule of fees for the applicable charges before making payment.
Practising licence renewal and compliance
Contractors must renew their practising licences annually. Licences expire on 30 June each financial year, so the renewal period typically falls in July, and applicants must meet the NCA’s Continuous Professional Development (CPD) requirements.
Under the NCA Regulations, the technically qualified partner or director of a firm or company must attend at least one CPD event recognised by the Authority during each year the contractor holds a licence. Successful attendance earns ten CPD points, which are considered during renewal.
Published annual renewal fees range from KES 2,500 to KES 30,000, depending on the category. Late renewal may attract additional charges. Check the NCA licence renewal guidance for current requirements and renewal dates.
Construction levy in Kenya and NCA project compliance
Contractor registration is different from project registration. Under Regulation 17 of the NCA Regulations, all public and private construction projects must be registered with the Authority. The project owner or developer is responsible for submitting the application within 30 days from the date the tender is awarded to an NCA-registered contractor.
Section 31 of the NCA Act empowers the Cabinet Secretary, through a Gazette notice, to impose a construction levy of up to 0.5% on qualifying contracts exceeding KES 5 million. However, the NCA announced that the levy had been set aside with effect from 1 January 2017.
The issue resurfaced in 2025 when the National Assembly called for steps to pave the way for the levy’s reintroduction. The National Treasury subsequently reported that the responsible Ministry was consulting relevant government agencies and Parliament. This does not, by itself, establish that the levy has been reinstated.
The NCA’s published project registration guidance and project registration FAQs state that project registration is free. Project owners should confirm any applicable charges directly with the Authority before budgeting for a project.
Penalties for unregistered contractors in Kenya
Under Section 15(3) of the NCA Act, a person convicted of carrying on contractor business without registration may face a fine of up to KES 1 million, imprisonment for up to three years, or both. A continuing offence may attract an additional fine of up to KES 100,000 for each day or part of a day it continues.
Contractors should therefore confirm their registration status and maintain valid practising licences before undertaking regulated construction work.
Registration also does not replace contractual compliance. Contractors must understand their obligations concerning payment, delays, variations and disputes under their construction contracts. Read our guide to FIDIC construction contracts in Kenya for more information.
Need Legal Guidance on NCA Registration?
If you are applying for NCA registration, seeking a contractor category upgrade or reviewing your compliance obligations, our Construction Law team can advise on the applicable requirements, assess your registration position and help you address potential regulatory issues before undertaking a project.
For legal guidance on your NCA registration or compliance concerns, contact our Construction Law team.
Frequently Asked Questions
Is NCA registration mandatory for contractors in Kenya?
Yes. Contractors carrying on regulated construction business must register with the NCA, subject to the limited exceptions provided under the National Construction Authority Act, 2011.
How many NCA contractor categories are there?
There are eight categories, from NCA 1 to NCA 8. The applicable category depends on the class of construction work and the contractor’s assessed capacity. Project value limits differ across building, civil engineering and mechanical or electrical works.
How much does NCA registration cost in Kenya?
The published application fee for local contractors is KES 5,000. Registration fees range from KES 5,000 to KES 100,000, depending on the approved category. Annual practising licence renewal fees are separate.
Is the NCA construction levy still payable in Kenya?
The NCA announced that the construction levy had been set aside with effect from 1 January 2017. A proposal to pave the way for its reintroduction was raised in 2025, but that proposal does not establish that the levy has been reinstated. Project owners should confirm the current position with the NCA.

