The National Construction Authority (NCA), on June 2023, rolled out new fee requirements for contractors seeking national and county government tenders.
While every contractor seeking to get a project must pay the aforementioned fees, Kenyans.co.ke learnt that the amount to be paid would depend on the size of the contracting firm and the project size.
The fee is categorised into; application, registration, annual licence and defaulter costs.
An insider at NCA told Kenyans.co.ke that President William Ruto’s government was striving to ensure sure that all contractors paid the necessary fee and adhered to standards set by NCA, The Energy and Petroleum Regulatory Authority (EPRA), and the Communications Authority of Kenya (CA).
Contracting firms in Kenya are ranked from NCA1 to NCA8 depending on their size and the skills at their disposal.
“NCA1 category comprises national and international firms who can undertake unlimited infrastructural work like the Standard Gauge Railway and Nairobi Expressway.
“On the other hand, NCA8 is the lowest category of contractors who can only apply for projects not exceeding Ksh10 million,” he explained.
NCA1 contractors will pay the highest registration fees of Ksh100,000 and an annual licence fee of Ksh30,000.
For the registration fee, NCA will charge contractors from NCA1 to NCA8 Ksh100,000, Ksh75,000, Ksh50,000, Ksh25,000, Ksh20,000, Ksh15,000, Ksh10,000 and Ksh5,000 respectively.
Similarly, the annual licence fee for the firms from NCA1 to NCA8 will be, Ksh30,000, Ksh25,000, Ksh20,000, Ksh15,000, Ksh12,000, Ksh10,000, Ksh5,000 and Ksh2,500.
"Foreign companies bidding for construction jobs will only be allowed to register in the NCA1 category only. For contracts amounting to Ksh2 billion and below, the government prioritises local companies," the insider told Kenyans.co.ke.
For foreign companies, the registration fee is Ksh343,000 and Ksh206,000 annual licence renewal fee. Should they default on the payments, they will be required to pay Ksh618,000 in fines.
Requirements
Kenyans willing to bid for government tenders must apply for registration through the eCitizen platform.
Documents needed during application include; Copy of the company registration certificate, a copy of the company registration certificate, academic certificates and testimonials for the technically qualified staff, a valid Kenya Revenue Authority (KRA) Tax Compliance Certificate (TCC), and a certified copy of the current business license.
