National Construction Authority Act

Section 1. Short title. Section This Act may be cited as the National Construction Authority Act.

Section 2. Interpretation. Section any building, erection, edifice, structure, wall, fence or chimney, whether constructed wholly or partly above or below ground level;

Section 3. Establishment and incorporation of Authority. Section 3(1) There is hereby established an Authority to be known as the National Construction Authority. Section 3(2)(a) suing and being sued; Section 3(2)(b) taking, purchasing or otherwise acquiring, holding, charging or disposing of movable and immovable property; Section 3(2)(c) borrowing and lending money; and Section 3(2)(d) doing or performing all other things or acts which may be lawfully done or performed by a body corporate for the furtherance of the provisions of this Act.

Section 4. Headquarters. Section 4(1) The Headquarters of the Authority shall be in Nairobi. Section 4(2) The Authority may establish such other offices anywhere in Kenya as it may consider necessary for the discharge of its functions.

Section 5. Functions of the Authority. Section 5(1) The object for which the Authority is established is to oversee the construction industry and coordinate its development. Section 5(2)(a) promote and stimulate the development, improvement and expansion of the construction industry; Section 5(2)(b) advise and make recommendations to the Cabinet Secretary on matters affecting or connected with the construction industry; Section 5(2)(c) undertake or commission research into any matter relating to the construction industry; Section 5(2)(d) prescribe the qualifications or other attributes required for registration as a contractor under this Act; Section 5(2)(e) assist in the exportation of construction services connected to the construction industry; Section 5(2)(f) provide consultancy and advisory services with respect to the construction industry; Section 5(2)(g) promote and ensure quality assurance in the construction industry; Section 5(2)(ga) enforce the prescribed Building Code in the construction industry; Section 5(2)(h) encourage the standardisation and improvement of construction techniques and materials; Section 5(2)(i) initiate and maintain a construction industry informat...

Section 6. Powers of Authority. Section to award certificates of proficiency to contractors, skilled construction workers and construction site supervisors;

Section 7. Membership of the Board. Section 7(1)(a) a chairperson who shall be appointed by the Cabinet Secretary from among the members appointed under paragraph (g); Section 7(1)(b) the Principal Secretary in the Ministry for the time being responsible for matters relating to public works: Section 7(1)(c) the Principal Secretary in the Ministry for the time being responsible for matters relating to roads; Section 7(1)(d) the Principal Secretary in the Ministry for the time being responsible for matters relating to local government; Section 7(1)(e) the Principal Secretary to the National Treasury; Section 7(1)(f) the Principal Secretary in the Ministry for the time being responsible for housing; Section 7(1)(g) seven members comprising representatives of each of the organizations specified in Parts I and II of the First Schedule and appointed by the Cabinet Secretary from amongst three persons nominated by each of the organizations; and Section 7(1)(h) two members appointed by the Cabinet Secretary to represent groups with special interests in the construction industry. Section 7(2) In appointing persons as members the Cabinet Secretary shall have regard to the principle of gender...

Section 8. Vacation of office. Section resigns his office by notice in writing addressed to the Cabinet Secretary;

Section 9. Conduct of business and affairs of the Board. Section The conduct and regulation of the business and affairs of the Board shall be as provided in the Second Schedule, but subject thereto the Board may regulate its own procedure.

Section 10. Remuneration of Board members. Section There shall be paid to the members of the Board such remuneration, fees or allowances as the Cabinet Secretary, in consultation with the Salaries and Remuneration Commission, may determine.

Section 11. Delegation by the Authority. Section The Board may, by resolution either generally or in any particular case, delegate to any of its committees or to any member, officer, employee or agent of the Board, the exercise of any of the powers or the performance of any of the functions or duties of the Board under this Act or under any other written law.

Section 12. Executive Director. Section 12(1) There shall be an executive director of the Authority who shall be competitively recruited and appointed by the Board, and whose terms and conditions of service shall be specified in the instrument of appointment or otherwise in writing from time to time. Section 12(2)(a) architecture; Section 12(2)(b) quantity surveying, or Section 12(2)(c) engineering, Section 12(3)(a) be the chief executive officer of the Authority and responsible to the Board for the day-to-day management of the affairs of the Authority; and Section 12(3)(b) be the Secretary to the Board and the Registrar of contractors.

Section 13. Staff of the Board. Section The Board may appoint such officers as may be necessary for the proper discharge of the functions of the Authority under this Act or any other written law, upon such terms and conditions of service as the Board may determine.

Section 14. Co-option of members and establishment of Committees. Section 14(1) The Board may co-opt such experts and consultants as may be necessary to assist in the discharge of its functions. Section 14(2) The Board may establish such Committees as may be necessary for the performance of its functions and may, subject to the provisions of this Act, delegate powers conferred on it to such Committees.

Section 15. Requirement for registration. Section 15(1) A person shall not carry on the business of a contractor unless the person is registered by the Board under this Act. Section 15(2) A person seeking registration under subsection (1) shall, in the case of a firm, be eligible for registration if at least one of the partners or directors of the firm possesses such technical qualifications, skills or experience as the Board may from time to time prescribe. Section 15(3) Any person who contravenes subsection (1) commits an offence and shall be liable on conviction to a fine not exceeding one million shillings, or to imprisonment for a term not exceeding three years or to both, and in the case of a continuing offence, to a fine not exceeding one hundred thousand shillings for every day or part thereof during which the offence continues.

Section 16. Meaning of "Contractor". Section 16(1)(a) the materials necessary for the work, or is authorized to exercise control over the type, quality or use of the materials supplied by any other person; Section 16(1)(b) does not incur a cost exceeding such sum or sums as the Board may from time to time determine; or Section 16(1)(b)(i) does not incur a cost exceeding such sum or sums as the Board may from time to time determine; or Section 16(1)(b)(ii) consists of a residential house for private use, not requiring a structural design. Section 16(2) The Board shall register eligible contractors to undertake any of the classes of contracted works set out in the Third Schedule depending on their knowledge and experience. Section 16(3) The Cabinet Secretary may by notice in the Gazette amend the Third Schedule.

Section 17. Application for Registration. Section 17(1) A person or firm may apply to the Board for registration as a contractor for purposes of this Act. Section 17(2)(a) is the 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; Section 17(2)(b) has the necessary experience prescribed by the Board in works involving construction, erection, installation, alteration or any other activity Connected therewith; Section 17(2)(c) has professional and general conduct which in the opinion of the Board, makes the person suitable to be registered under this Act; and Section 17(2)(d) has the necessary plant and equipment for the category of works for which the registration is sought. Section 17(3)(a) does not meet the conditions stated in subsection (2); Section 17(3)(b) is a member of a consulting firm providing architectural, quantity surveying or engineering services, unless the person declares interest during the application for registration and does not carry out functions of consultancy and construction in the same project unless expressly specified. Section 17(3)(c) is a person wh...

Section 18. Registration of foreign contractors. Section 18(1)(a) intends to be present in Kenya only for the purpose of carrying out the specific works for which it has been contracted, for which, the sum payable is not less than the sum prescribed by the Board for the class of works in respect of which registration is sought; Section 18(1)(b) has a certificate of compliance from the Registrar of Companies showing that it is, or immediately prior to entering Kenya, was, trading as a contractor in the capacity which satisfies the Board with respect to its suitability to serve the public as a qualified contractor; and Section 18(1)(c) has lodged an affidavit with the Board to the effect that, once the contracted works are completed and the period of defects liability or maintenance has elapsed, it shall wind up business and shall not engage itself in the construction business within Kenya. Section 18(2) The Board may require an applicant under this section to appear before it and produce documentary evidence of its competence in executing construction works immediately prior to its entry in Kenya. Section 18(3) Registration of a firm under this section shall entitle it to undertake...

Section 19. Registers of Contractors. Section 19(1) The Registrar shall keep and maintain registers in which the name of every registered contractor shall be entered as soon as practicable after being approved by the Board for registration. Section 19(2)(a) the date of registration; Section 19(2)(b) the physical and postal address; Section 19(2)(c) the registration number; Section 19(2)(d) the class of works for which the person is registered; Section 19(2)(e) the capital and other financial resources; Section 19(2)(f) tools, plants and equipment; Section 19(2)(g) the key managerial, professional or technical and other personnel; Section 19(2)(h) names and qualifications of directors or partners, who are technically qualified or experienced in the relevant works as prescribed by the Board; Section 19(2)(i) in the case of an individual, his qualifications or skills and experience; Section 19(2)(j) the annual turnover of construction activities; Section 19(2)(k) the duration of registration; Section 19(2)(l) the type of registration; and Section 19(2)(m) any other particulars which the Board may, from time to time, direct. Section 19(3) The Registrar shall maintain separate registers...

Section 20. Publication of registers and lists. Section The Registrar shall by notice published in the Gazette , as soon as practicable after registration, publish the names and particulars of all persons registered by the Board, and shall, as soon as practicable after the 1st January and the 1st June in each year, publish in the Gazette the names and particulars of all contractors whose names remain on the register as at those dates.

Section 21. Publicationprima facieevidence of registration. Section 21(1) Publication of the name of a person in the Gazette under section 19 shall be prima facie evidence that the person is registered under this Act. Section 21(2) The registers, and any lists, copies, or extracts thereof, which are duly certified by the executive director shall be accepted in all courts and tribunals or other bodies authorized to receive evidence of the facts stated in them. Section 21(3) Any person may inspect the register and any document relating to any entry in it and may obtain from the Registrar a copy of an extract from the register for any document on payment of a prescribed fee.

Section 22. Inquiry into conduct of contractors. Section 22(1) The Board may institute an inquiry into the conduct of a contractor on its own initiative or upon receipt of a complaint addressed to the Board in writing, made by or on behalf of any person alleging unprofessional conduct on the part of a registered person. Section 22(2) The Board may conduct such inquiry or refer it to a subcommittee appointed by the Board for the purpose. Section 22(3) Upon receipt of a complaint against a contractor, the Board shall inform the person complained of, giving the grounds of the complaint, by notice sent to the contractor's last address acknowledged by the Registrar. Section 22(4) The Board may call upon the contractor whose conduct is complained of or is under investigation to file, within a specified period, an explanation in answer to the complaint, and may require such explanation to be verified by affidavit. Section 22(5) The Board may summon before it or before a subcommittee established for the purpose, any contractor against whom a complaint is lodged or whose conduct may appear to the Board to require investigation, and may call upon such contractor to produce any document, cont...

Section 23. Appointment of Investigating officers. Section 23(1) The Board may, for the purpose the performance of its functions under section 21 , appoint such number of investigating officers, to be known as investigating officers of the Board, as it considers necessary for the purposes of carrying out the investigation of any offence or inspection under this Act. Section 23(2) An investigating officer shall, for the purpose of ascertaining whether the provisions of this Act or any regulations made thereunder are being complied with, have power at all reasonable times to enter into any construction site where construction works are being carried out and make such enquiry or inspection as may be necessary for the purposes of the functions of the investigating officer. Section 23(3)(a) put questions concerning the registration of any contract, the accreditation and certification of the skilled construction workers and construction site supervisors or the payment of levy, and all the persons to whom the questions are addressed shall be legally bound to answer such questions truthfully to the best of their ability; Section 23(3)(b) require any person to produce any records required t...

Section 24. Suspension. Section 24(1)(a) is convicted of an offence under this Act; Section 24(1)(b) is found guilty of any act or omission amounting to improper, disgraceful conduct or gross professional misconduct, after due inquiry held by the Board; or Section 24(1)(c) has breached the regulations or by-laws of the Authority. Section 24(2)(a) caution or censure a registered contractor; Section 24(2)(b) direct that the registration of the contractor be suspended for such period as it may specify; Section 24(2)(c) direct that the contractor's name be deleted from the Register; or Section 24(2)(d) take legal action against the registered contractor. Section 24(3) The Board shall communicate its decision under subsection (1) to the suspended contractor in writing not later than fourteen days from the date of the decision.

Section 25. Deletion of name. Section 25(1)(a) fails, within a period of six months from the date of an inquiry sent by the Registrar by registered letter to the address appearing in the register against his name, to notify the Registrar of his current address; Section 25(1)(b) requests that the name be deleted from the register, in which case that contractor may be required to satisfy the Board by swearing an affidavit certified by a commissioner for oaths and lodged with the Registrar that no criminal proceedings under section 20 or 21 of this Act are being, or are likely to be, taken against the contractor; Section 25(1)(c) fails to pay annual subscription fees for two consecutive years; Section 25(1)(d) fails to meet the registration criteria set by the Authority; Section 25(1)(e) fails to discharge the duties, responsibilities and obligations of a contractor; Section 25(2) The Registrar shall delete the name of every deregistered contractor from the register. Section 25(3) Except in the circumstances specified in subsection(1)(a) and subsection (2), the deletion of the name of any contractor from the register shall be notified by the Registrar to that contractor by a recorded...

Section 26. Powers of the Board with regard to register. Section 26(1) Where the name of any contractor has been deleted from the register such name shall not be restored to the register except on the direction of the Board. Section 26(2)(a) the deletion of the contractor's name from the register be confirmed ; Section 26(2)(b) the name of that contractor be restored to the register; or Section 26(2)(c) the suspension of the contractor be lifted. Section 26(3)(i) the restoration of the contractor's name to the register; Section 26(3)(ii) the lifting of the suspension of the contractor; or Section 26(3)(iii) the payment by the contractor of such penalty, not exceeding the fee payable for registration, as the Board may determine. Section 26(4)(a) refuse to register the contractor; Section 26(4)(b) delete the contractor's name from the register; or Section 26(4)(c) suspend the contractor, Section 26(5) The Board may appear as respondent and be heard on any appeal against its decision and, for the purposes of enabling directions to be given as to the costs of any appeal, the Board shall be deemed to be a party thereto, whether or not it shall appear at the hearing of the appeal.

Section 23A. Mandatory inspections. Section The Authority shall undertake mandatory inspections at any time on sites under constructions in accordance with section 5 (2)(g). [Act No. 1 of 2020 , s. 19.]

Section 27. Establishment. Section 27(1) There is established a board to be known as the National Construction Appeals Board (hereinafter referred to as "the Appeals Board"). Section 27(2)(a) a chairperson, being an advocate of the High Court of Kenya, who shall be nominated by the Attorney-General; Section 27(2)(b) a person with professional knowledge and experience in architecture, quantity surveying, engineering, building surveying or project management; and Section 27(2)(c) a person nominated by the Chartered Institute of Arbitrators (Kenya Chapter). Section 27(3) An appeal shall lie to the Appeals Board at the suit of any person aggrieved by a decision of the Board under section 26 (4). Section 27(4) A person aggrieved by the decision of the appeals Board may within thirty days from the date of the decision of the Appeals Board appeal to the High Court. [Act No. 18 of 2018 , Sch.]

Section 28. Board may make the rules. Section The Appeals Board may make rules for or with respect to the filing, hearing and disposal of appeals and other matters before it.

Section 29. Expenses of the Appeals Board. Section The expenses of the Appeals Board shall be provided by the Ministry.

Section 30. Funds of the Authority. Section such income as may be provided by Parliament for the purposes of the Authority:

Section 31. Imposition of levy. Section 31(1) The Cabinet Secretary may, by notice in the Gazette , impose a levy to be known as the construction levy on construction work carried out by persons registered under this Act. Section 31(2) The levy shall be in an amount not exceeding an equivalent of 0.5%, of the value of any contract whose value exceeds five million shillings. Section 31(3) The Cabinet Secretary may make regulations prescribing the manner of payment of the levy.

Section 32. Financial year. Section The financial year of the Authority shall be the period of twelve months ending on the thirtieth June in each year.

Section 33. Annual Estimates. Section 33(1) At least three months before the commencement of a financial year, the Board shall cause to be prepared the estimates of revenue and expenditure of the Authority for that year. Section 33(2)(a) the payment of salaries, allowances, pension gratuities, and other changes in respect of the staff of the Authority; Section 33(2)(b) proper maintenance of the buildings and grounds of the Authority; and Section 33(2)(c) the maintenance, repair and replacement of the utilities, equipment and other property of the Authority. Section 33(3) The annual estimates shall be approved by the Board before the commencement of the financial year to which they relate, and shall be submitted to the Cabinet Secretary for approval, and thereafter the Authority shall not increase or decrease the annual estimates except with the authority of the Cabinet Secretary.

Section 34. The National Construction Authority Fund. Section 34(1) There shall be established a Fund to be known as the National Construction Fund, which shall vest in the Authority. Section 34(2)(a) the initial budgetary provision by the Government as start-up capital for the establishment of the Authority; Section 34(2)(b) the charges levied on contractors on services given by the Authority; Section 34(2)(c) such moneys or assets as may accrue to or vest in the Authority in the course of the exercise of its powers or the performance of its functions under this Act or under any other written law; Section 34(2)(d) all proceeds from the levy imposed under section 26 ; and Section 34(2)(e) all moneys from any other source provided for or donated or lent to the Authority; Section 34(3) All receipts, savings and accruals for the Fund and the balance of the Fund at the end of the financial year shall be retained for the purposes for which the Fund is established. Section 34(4) There shall be paid out of the Fund any expenditure incurred by the Authority in the exercise of its powers or the performance of its functions under this Act. Section 34(5) The Board may with the approval of the...

Section 35. Accounts and audit. Section 35(1) The Board shall cause to be kept all proper books and records of account of the income, expenditure and assets of the Authority. Section 35(2)(a) a statement of the income and expenditure of the Authority during that year; and Section 35(2)(b) a statement of the assets and liabilities of the Authority on the last day of that year. Section 35(3) The accounts of the Authority shall be audited and reported upon in accordance with the Public Audit Act ( Cap. 412B ). Section 35(4) The Authority shall ensure that in any financial year expenditure and commitments from the Account shall not exceed the annual income of the Fund together with any surplus income brought forward from a previous year.

Section 36. Investment of funds. Section 36(1)(a) invest any of its surplus funds in Government securities; Section 36(1)(b) place or deposit with any banks quoted on an approved securities exchange in Kenya as it may determine, any moneys not immediately required for the purposes of the Authority. Section 36(2) In this section, "approved securities exchange" means a securities exchange approved under the Capital Markets Act ( Cap. 485A ).

Section 37. Protection from liability. Section 37(1) No matter or thing done by a member of the Board or any officer, employee or agent of the Authority shall, if the matter or thing is done bona fide for executing the functions, powers or duties of the Authority under this Act, render the officer, employee or agent or any person acting under their direction liable to any action, claim or demand whatsoever. Section 37(2) The provisions of subsection (1) shall not relieve the Authority of the liability to pay compensation or damages to any person for any injury to him, his property or any of his interests caused by the exercise of the powers conferred on the Authority by this Act or by any written law or by the failure, whether wholly or partially, of any works.

Section 38. Common seal. Section 38(1) Subject to this section, the common seal of the Authority shall be kept in the custody of the Executive Director or of such other person as the Board may direct, and shall not be used except upon the order of the Board. Section 38(2) The common seal of the Authority shall be authenticated by the signature of the chairperson and the executive director. Section 38(3) The common seal of the Authority, when affixed to any document and duly authenticated under this section, shall be judicially and officially noticed, and, unless the contrary is proved, the necessary order or authorization of the Board under this section shall be deemed to have been duly given.

Section 39. Signification of documents. Section All documents other than those required by law to be under seal made on behalf of the Board shall be signified by the hand of the chairperson of the Board, the Executive Director, or any other member of the Board specifically authorized by the Board in that behalf.

Section 40. Protection of name. Section Any person who, without the written consent of the Board, uses the words "National Construction Authority" in furtherance of, or as, or in connection with, any advertisement for any trade, business, calling or profession, commits an offence and is liable on conviction to imprisonment for a term not exceeding three years or a fine not exceeding one million shillings or to both such fine and imprisonment.

Section 41. Power to dissolve Board. Section Notwithstanding any other provision of this Act, the Cabinet Secretary may by notice in the Gazette dissolve the Board where the Board performs its functions in a manner which is inconsistent with this Act.

Section 42. Power to make Regulations. Section 42(1) The Cabinet Secretary may in consultation with the Board, make regulations generally for the better carrying out of the purposes of this Act. Section 42(2)(a) the manner of payment of the levy imposed under section 31 ; Section 42(2)(aa) the Building Code in the construction industry; Section 42(2)(ab) the manner of conducting mandatory inspections by the Authority; Section 42(2)(b) the manner of service of any notice required under Act; Section 42(2)(c) the fees and charges to be paid in respect of any matter required for purposes of this Act; Section 42(2)(d) the manner and forms of accreditation and certification of contractors, skilled construction workers and construction site supervisors; Section 42(2)(e) the responsibilities and control of the officers and servants of the Authority; Section 42(2)(f) the performance of the functions, the exercise of the powers and discharge of the duties of the Authority under this Act, and Section 42(2)(g) any other matter to give effect to the provisions of this Act. Section 42(3) Regulations made under this section shall be tabled in Parliament for approval before taking effect. [Act No....

Section 43. Supersession. Section Where any conflict arises between the provisions of this Act and the provisions of any other law on the training, registration and regulation of contractors and construction workers, the provisions of this Act shall prevail.