The National Construction Authority (NCA), which was constituted under the Act No. 41 of 2011, was enacted in December 2011 in a bid to regulate and bring sanity in the Kenyan construction industry.
NCA is placed under the Ministry of Lands, Housing and Urban Development.
The Authority, whose board is chaired by Steven Oundo, is managed to oversee the construction industry – including registering (and de-registering) contractors after rigorous scrutiny to ensure only competent contractors are allowed to carry out any construction work in the country.
Section 15 of the Act states that no contractor shall conduct the business of a contractor without a clearance certificate from the Authority.
The section also sets a fine of Sh1 million or three years imprisonment or both for contractors who breach this provision.
The Act stipulates that the NCA will carry out the registration exercise twice a year (June/January) and publish the particulars of all registered contractors in the Kenya Gazette and the Registrar shall generate the Register of contractors.
THE BOARD OF THE AUTHORITY
The NCA comprises 14 members drawn from the building and construction sector. It includes representation of the Principal Secretary from key Infrastructure ministries as well as representation of private sector.
Private institutions represented include the Architectural Association of Kenya, Institution of Engineers of Kenya, Institute of Quantity Surveyors of Kenya and the Law Society of Kenya.
The Board also includes members of the Kenya Federation of Master Builders, Roads and Civil Engineering Contractor’s Association and the Kenya Association of Building and Civil Engineering Contractors.
The NCA is expected to weed out quarks and put an end to shoddy works and curb collapsing buildings accidents in a sector that has remained unregulated since 1986 when parliament disbanded the National Construction Corporation.
THE CONSTRUCTION LEVY
The Act prescribes collection of a levy as “an amount not exceeding an equivalent of 0.5 per cent of the value of any contract whose value exceeds Sh5 million.”
This means that for a Sh5 million contract, the NCA shall collect an amount not exceeding Sh25,000 from the same.
By May 31, 2014, the Authority had registered at least 31,000 contractors.