New Law Exempts 3 Categories of People from Paying Contractors Registration Fee

An image of business shops in Nairobi, Kenya
An image of business shops in Nairobi, Kenya
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The National Assembly on Wednesday, agreed to amend the National Construction Act to exempt marginalised groups from paying registration fees. 

According to the Amendments which had been proposed by David Gikaria, Nakuru Town East Member of Parliament, women, youth and persons with disabilities will be exempted from paying registration. 

This is on condition that the business is a startup business venture and the fee does not exceed fifteen thousand shillings.

“The amendment seeks to provide for the recognition of women, youth and persons living with disabilities as marginalized groups and cushion them from the burden of paying registration fees,” Gikaria had argued. 

A photo of Kenya National Assembly.
A photo of Kenya National Assembly.
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Parliament of Kenya

Due to the Ksh15,000 cap, the exemption will be applicable to individuals who apply for registration as contractors under categories six, seven and eight.

According to the National Construction Authority (NCA), Kenyans pay Ksh15,000, Ksh10,000 and Ksh5,000 for categories 6, 7 and 8 respectively. 

NCA8 is the lowest category of contractors who can only apply for projects not exceeding Ksh10 million. 

NCA7 can apply for projects up to Ksh20 million while category 6 are contractors who can undertake projects worth Ksh50 million. 

To be exempted from the registration fee, the person making the application must be a holder of the minimum technical qualifications and skills prescribed by the Board for the class of contract works in respect of which registration is sought. 

The person seeking exemption must also have the necessary plant and equipment for the category of works for which the registration is sought.

“The Board may refuse to register a person as a contractor if, in its opinion, the person is a member of a consulting firm providing architectural, quantity surveying or engineering services,” the now amended Act reads in part. 

Marginalised groups who fall under the aforementioned category can still qualify for exemption if they declare an interest during the application for registration and does not carry out functions of consultancy and construction in the same project unless expressly specified. 

A marginalised person whose registration as a contractor shall result in a conflict of interest with his employer will also not be exempted from paying the registration fee. 

The Bill will now be put into question for the last time and then forwarded to President William Ruto to assent to Law or propose further changes. 

Road construction underway in Mfangano Island, Mbita Constituence.
Road construction is underway in Mfangano Island, Mbita Constituency.
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Kenya Urban Roads Authority