Category: A4architect

Residential Land price appreciation in Kenya around Nairobi.2000 to 2013.

High cost land.

Example. Karen, Runda.

High cost areas such as Karen and Runda had land price per acre at kes 3m in 2000.
5 years later in2005, the same acre sold for between kes 7m to kes 10m.

This represents 30% price appreciation per year.

Same land costed between 12 to 15m per acre 5 years later in 2010.
This represents 20% price appreciation per annum.

Currently, in 2013, the same land costs approximately kes 30m.

This represents 33% price appreciation per year.

A median estimate of 25% price appreciation for high cost land around Nairobi can be safely guestimated.

Middle cost land.

Example. Syokimau, Kitengela, Kiambu, Juja, Ruiru.

Middle cost land in Syokimau, Kiambu, Juja, Kitengela cost kes 300,000 per 1/8th acre or 2.4m per acre in 2000.
In 2005, land in the same areas costed kes 700,000 per 1/8th or 5.6m per acre.

This represents 30% annual price appreciation.

The same land costed kes 1.5m per 1/8th or kes 12m per acre in 2010.

This represents 23% annual price appreciation.

Currently, the same 1/8th acre is costing 2.5m per eighth or kes 20m per acre.

This represents 25% annual increment.

Low cost land.

Examples. Isinya, Joska Kangundo road, Juja farm, Naivasha.

In 2000, 1 acre land in these areas cost kes 50,000.

In 2005, the same acre costed kes 100,000.
This represents 20% annual price increment.

In 2010, the same acre costed kes 250,000.
This represents a 30% annual price increase.

Currently, in 2013, the same acre costs kes 400,000.
This represents a 20% annual land price increase.

Global Land price appreciation rates.

In South Africa, property appreciated at a rate of 20% only during the property boom of between 2000 and 2006.
In Texas, USA, the average annual rate of price increase for the last 20 years before 2010 was 8.9%.
http://michaelbluejay.com/house/appreciation.html

The average South African appreciation rate for property is 11%.
http://housepricesouthafrica.com/2011/01/27/what-will-average-property-prices-look-like-in-2050/

In Ontario, Canada, for the last 10 years, property appreciation was in the tune of 2.9% per annum.
http://www.neighborhoodscout.com/ca/ontario/rates/

In Las Vegas, USA, property appreciation for the last 10 years has been an average of -3% negative per annum.
http://www.neighborhoodscout.com/nv/las-vegas/rates/

This year, 2013, land prices in USA are estimated to appreciate to the tune of 15% per annum.
http://online.wsj.com/article/SB10001424127887323820304578412632432865220.html

Kenya Inflation rate.

In 2011, inflation rate in Kenya was 14%.
In 2012, the inflation rate was down to 10%.
http://www.indexmundi.com/kenya/inflation_rate_%28consumer_prices%29.html

Conclusion.

Government of Kenya ministry of lands and ministry of finance will need to work out solutions that reduce the high annual land price increase in Kenya. This will make land price affordable hence allowing many Kenyans acquire this important factor of production so as to in turn increase production hence lower inflation.
These current high land price appreciation is beneficial to the individual real estate investors, architects, engineers etc but form a fiscal economics angle, detrimental to the national economics.

Francis Gichuhi Kamau, Architect.
0721410684

Return on Investment for Rent vs Sale in Kenya.

Real Estate investors can opt to invest in rental or sale properties.
Each of these has its own advantages and disadvantages.

Rental property.

Advantages.

Assured regular monthly income for a long time.
Lower cost of construction compared to projects for sale.
Ability to let kin inherit property.

Disadavantages.

Its harder for banks to finance projects for rent compared to projects for sale. Developer will need huge % of personal savings to construct.
Returns on Investment take many years . The market average is between 10 to 15 years.
Need for regular building maintenance and dealing with problematic tenants.

Sale property.

Advantages.

Shorter Return on Investment. The market average is between 20 to 30% ROI within 2 to 3 years.
Easy to obtain capital from banks and Joint Venture partners.
Less headaches from Nonexistent building maintenance issues and tenants.

Disadvantages.

Higher cost of construction so as to entice end buyers.

Joint Venture equity provider.
A JV equity provider can easily get a Return on Investment of between 100 to 300% within 2 to 3 years in the case of investment in property for sale.

Francis Gichuhi Kamau, Architect.
0721410684

Difference in Cement cost between Local Fundi mix ratio vs. specified ratio.

In Kenya, majority of the local construction developers who have no full architectural and structural engineering services rely on the local fundis and foremen to guide them on the mix ratios for cement, sand and ballast.

The local fundi mix ratio is usually 2 bags of cement for 4 wheelbarrows of sand to 8 wheelbarrows of ballast.

This represents a ratio of 1 to 4 to 8.

The specified mix ratio of for exposed Reinforced concrete is 1 to 2 to 4.

This represents 2 bags of cement to 1 wheelbarrow of sand to 4 wheelbarrows of ballast.

2 bags of cement make up 1 wheel barrow.

Example. 170m2 residential house.

Calculations when the house construction has used cement ratios of 2 bags cement to 4 wheelbarrows of sand to 8 wheelbarrows of ballast will be as below.

FOUNDATION
BLINDING
CEMENT BAGS	14.98
SAND	3,630.77
BALLAST	5,990.77
STRIP FOOTING
CEMENT	88.85
SAND	21,538.46
BALLAST	35,538.46
FOUNDATION WALLING		2000 stones
CEMENT	29.17
SAND	12,376.00
RING BEAM
CEMENT	25.38
SAND	6,153.85
BALLAST	10,153.85
SUPERSTRUCTURE WALLING		3800 stones
CEMENT	41.71
SAND	17,696.00
BALLAST	10,267.57
ROOF		2000ft
FLOOR SCREED
CEMENT	23.76
SAND	5,760.00
WALL PLASTER
CEMENT	41.25
SAND	17,500.00
WALL KEYING
CEMENT	6.50
SAND	2,756.25
TOTAL
		COST	KES
CEMENT	271.60	190,119.00	190,119.00
SAND	87,411.33	87.41	87,411.33
BALLAST	61,950.65	61.95	99,121.03
TOTAL			376,651.36

 

271 Bags of cement costing KES 190,000 will be used in total.

 

Calculations for the same house using specified ratios of 1 to 2 to 4 will be as below

FOUNDATION
BLINDING
CEMENT BAGS	27.81
SAND	3,371.43
BALLAST	5,562.86
STRIP FOOTING
CEMENT	165.00
SAND	20,000.00
BALLAST	33,000.00
FOUNDATION WALLING		2000 stones
CEMENT	38.90
SAND	11,786.67
RING BEAM
CEMENT	47.14
SAND	5,714.29
BALLAST	9,428.57
SUPERSTRUCTURE WALLING		3800 stones
CEMENT	41.71
SAND	17,696.00
BALLAST	10,267.57
ROOF		2000ft
FLOOR SCREED
CEMENT	23.76
SAND	5,760.00
WALL PLASTER
CEMENT	41.25
SAND	17,500.00
WALL KEYING
CEMENT	6.50
SAND	2,756.25
TOTAL
		COST	KES
CEMENT	392.07	274,450.41	274,450.41
SAND	84,584.63	84.58	84,584.63
BALLAST	58,259.00	58.26	93,214.40
TOTAL			452,249.44

 

392 bags of cement will be uses, costing KES 274,000.

this represents a 30% increase in cost of cement.

This represents a 16% increase in overall cost of concrete.

For most local constructions whereby developers engage fundis without architectural and engineering consultations, this is the amount of % savings they usually aim to get.

This method of achieving savings can be compared to an own goal since once structural defects check in, they are unrepairable and can result in the loss of the complete building, usually costing millions of shillings.

Developers should engage their architects and engineers in other methods that can result in the same % savings without compromising structural integrity.

Francis Gichui Kamau, Architect.

0721410684

 

How Architectural services help to improve Real Estate earnings.

Architectural service is in two main parts.
1. Architectural Design.
2.Construction project Management.

Architectural design.

This helps to ensure that the best arrangement of the building in relation to the land boundary is achieved. This helps to ensure more units can be fitted within a piece of land hence more profits to the land owner.

Also, how the interior spaces relate to each other is addressed within Architectural design. Architects will ensure that the critical spaces e.g. bedrooms, kitchens , living rooms have adequate space which is not eaten by non critical space such as corridors. The balance of circulation corridor spaces vs. livable spaces is achieved in such a manner that the land owner’s investment mainly goes into livable space as opposed to circulation space.

Design arrangement that psychologically gives the impression of more space is also addressed. Use of natural light and ventilation ,resulting in better quality interior spaces, is also achieved.

Construction Project Management.

Architects ensure that the Best Practices the world over on how to go about constructing buildings is achieved. Architects will advice on the roles of the Quantity Surveyor, Structural, Civil, Electrical and Mechanical engineers, landscape architects, interior designers and land planners.

Of late, there have been cases of buildings collapsing in Kenyan and other countries around the world. This happens when the developer has not taken into consideration other consultants such as the civil and structural engineers into the project. The developer is supposed to ensure that the complete design team comprising of architect, quantity surveyor, and engineer is working in harmony. This way, no such cases can occur.

Selecting an contractor.

There are huge savings that the developer can get if he uses the advice of the architects and quantity surveyors in obtaining and procuring the building works. Systems that have been tried and tested internationally for any given project size will come into play. The reason South Africa has one of the lowest construction costs in Africa but the highest construction quality in Africa is because all projects, including simple pit latrines, go through an architect, and engineer and a quantity surveyor. The South Africans don’t use any shortcuts. This has in turn benefited them in that the construction costs are much lower.

Kenyan construction costs are high because a huge percentage of building developers rarely use architects, engineers and quantity surveyors. The result is usually a poorly constructed building that fetches low rent but still as expensive top construct as the good quality ones.

A good example is the high rise flats in East Lands. The cost per m2 is same or higher than the better quality ones in Westlands, Kileleshwa tect. The reason these will be of lower quality but higher construction cost is because the developers are not being able to benefit from the thousands of hours that the architects, engineers and quantity surveyors put it.

Cost of consultancy.

Full Architectural, Quantity Surveying and Engineering services would cost on average 10% of the total construction cost. This investment by the developer is usually the make or break in terms of rental or sale income. Projects without this input will fail or return poor rents. Projects with this input have higher rent, sales and have a lower construction cost.
Example.
The below housing projects are right next to each other. One fetches double the rent of the other. Construction cost per m2 is the same. One has higher quality of construction than the other. The only difference is architectural design, which costs a very small percentage of construction cost but can result in over 100% increase in rental or sale income.

Lenana View Partments.
Rent. 60,000 KES.

Neighbouring Apartments. Rent. 30,000KES.

The reason one project costs the same as the other, has higher quality of construction and has double the rent of the other is that the developers tapped into the resources of the architects, quantity surveyors and engineers.

Francis Gichuhi Kamau, Architect.
0721410684

Joint Venture in Kenya. 100% financing for Real Estate Projects. Highest Return on Investment .

Joint Venture for construction of buildings in Kenya is now a common occurrence . Many buildings are being financed this way. Notable buildings financed this way are the Suraya Housing project along Kiambu road, Everest park at Athi River and Project Snow Drop in Upper Hill.

Suraya Kiambu road.

Everest Park, Athi river.

Snow Drop, Upper Hill.

Why Joint Venture.

As the cliché saying goes, in Real Estate investment, there are 3 important points
1.Location.
2.Location
3.Location.

This means that not all potential Real Estate investors can get prime land. A good example of prime land is land fronting tarmac, land in Nairobi CBD ,Upper Hill, Westlands, Runda, Karen etc.

Land owners in such prime areas have 2 options to fund their Real Estate projects.

1.Sell part of the land to enable then raise 20 to 30% of the total project cost needed by the banks for them to release a loan of the remaining 70 to 80% of construction cost.

2. Look for a Joint Venture partner to raise the 20 to 30% needed by the banks as condition for releasing the 70 to 80% of construction cost.

In most cases, the Joint Venture scenario presents a win win situation since the development can be constructed with economies of scale and services such as parking can be easily availed in larger plot sized developments.

Joint Venture Return on Investment.

As a real estate investor, Joint Venture returns on average between 100% to 300% of the money put into the investment within 2 to 3 years. This is a very impressive return compared to the real estate average of 20 to 30%.

Example. 0.5 acre in Nairobi CBD outskirts Joint Venture.

The land owners contribution is kes 120m which is the value of the land.
The cost of construction is 400m.
For the land owner to obtain bank financing, he will require to have 20% of 400m in cash=80m.
This is a huge amount of cash so a JV win win situation is necessary.
The JV partner is required to inject KES 80m.
With this, he gets to be part owner of the land.

A Special Purpose Vehicle company is registered for this purpose whereby the land owner transfers the land into the company jointly owned by him and the JV partner.

Once the bank releases the loan to construct, houses are completed and sold off. After all expenses are deducted, a profit of kes 200m is realized.

The land owner gets the value of his land, kes 120m plus a share of the 200m, usually on a 50 50 split. He walks with kes 220m.

The JV partner after injecting kes 80m walks with the kes 80m plus kes 100m. This represents a 125% return on investment within 2 to 3 years which is quite impressive.

Conclusion.

For the land owner, a JV partnership represents the easiest way to unlock funding for development.
For the JV partner, the JV presents a situation for him to make over 100% return without having the need to buy land in a good location.

Francis Gichuhi Kamau, Architect.
0721410684

Differences between High, Middle and Low cost houses in Kenya.

High cost houses have a construction cost of kes 40,000 per m2 and above.
Middle cost have between kes 25,000 to kes 40,000 and low cost have kes 25,000 and below.

High cost.

Example of this is projects such as Kihingo Village in Nairobi.

Notice the use of external textured surfaces, use of pattered hand dressed stones, external wall cladding with Mazeras, large full glass double doors, uPVC windows, stone coated steel roofing tiles and the large plinth area of approx.400m2.
These are a few of the elements that result to the high cost of construction.

Middle cost.

These are found in areas such as Kitenglea, Rongai, Ruai, Kiambu.
These are characterized by smaller plinth areas of around 100m2, use of natural stone external walling with basic keying finish, concrete or mabati steel roof, steel casement windows , small to average sized doors and windows without full glass and basic landscaping.

Low cost.

These are found in areas such as Kangundo, Joska,and 2km deep from tarmac in towns 30km and above from Nairobi.

The main characteristics include basic shape without elaborate design, external masonry walling without keying, no paint, use of light gauge steel roofing sheets, no ceilings, no landscaping, very small windows and doors.

Conclusion.

Its important to plan your building with the right class for the right neighbourhood. A high class finished house in a low class neighborhood will not give the returns. The cost of construction will be high but the maximum rental or sale value will be disproportionately low.
Same applies for low class finished building in a high class neighborhood.
A good example of this is the newly constructed Big Square building in Karen shopping centre. This has been constructed using high class materials. Its already enjoying 100% occupancy rates with rents of over kes 100 per sq.foot.

Also, the Karen Nakumatt building enjoys 100% tenancy rates with high rent per square foot.

In between these 2 buildings, is the Tana house building. The rent per square foot is much lower and the occupancy rate is also lower. This is because of the lower quality of materials and workmanship used, and lower architectural design appeal compared to the two buildings sandwiching it.

Tana House.

The cost of increase in quality of construction material and workmanship in an area that can derive good rent is usually very low . With good feasibility study planning where a business plan is prepared which will allow banks to understand the project and finance the construction is all what is required. When such a project is not carefully planned, the rental returns will be low for the duration of the building .

Francis Gichuhi Kamau, Architect.
0721410684

Kenya Construction Industry at 50 years.

Kenya attained its independence from the British in 1963. Its now 50 years since. Below is an overview on the changes that have taken place within the construction industry.

Prior to colonization of Kenya by the British in 1895, the architecture in Kenya was traditional. Each community shaped its buildings depending on climatic factors , material availability and space use.

Areas that had less rains could be able to sustain earthen roofs eg Manyattas. Areas that had heavy rainfall had steep roof pitches eg Kisii. Areas that had high humidity had grass walled huts eg Coast province.

After 1895, the British introduced their architecture. This architecture was mainly signified by use of hand curved masonry walling, clay roof tiles and wooden windows. Examples of this is the Kipande house building along Kenyatta avenue built in 1913. It was designed by Gurdit Singh.

Between the early 1900s till 1963.

Between the early 1900s till 1963, the Kenyan architecture was a minute of traditional indigenous huts for locals and the masonry buildings used by the British colonists.

All the traditional indigenous huts were at ground floor level execpt at the coast where the arabic architecture influence had houses of several levels such as the Fort Jesus built in 1591 by the Portuguese and Arabs.

Between 1963 and 1970.

City Hall building was constructed in 1957.
Parliament building was also built during the same period.

Watch the 1950s video below.

http://www.britishpathe.com/video/new-parliament-building-in-nairobi

The Kenya Nairobi High court building was also constructed during the 50s.
Indigenous Africans shifted from the grass thatch and mud hut architecture into British style masonry stone walled , pitched roofed houses.

the Kenyatta government spearheaded construction of high rise buildings such as KICC building constructed in 1967 by Solel Boneh and Factah contractors. It was designed by Architect David Mutiso and Architect Karl Henrik Nostvik.

Hilton hotel was also constructed during this period.

Housing estates such as Jericho and Jerusalem in Eastlands, Nairobi came up.
Most housing units are still in only 1 level.

Between 1970 to 1980.

More high rise buildings were constructed in Nairobi CBD. The NSSF building was constructed in 1974.

Notable of these is the Nyayo house towers which commenced in 1979.

BETWEEN 1980 to 1990.

Notable high rise structures are the City Hall Annex building built in 1981.

Residential estates such as Buru Buru were competed then. Buru Buru phase 5 was completed in 1982.
Umoja 1 and 2 estates were also completed during this period.

BETWEEN 1990 and 2000.

This period marked a slowdown in the Kenyan construction industry. Very few new buildings and residential estates were constructed. Notable buildings constructed during this period is the I and M building along Kenyatta avenue.

Residential units shifted into 2 levels in height.

BETWEEN 2000 and 2010.

This period was marked by a reduction of bank interest rates. This enabled Kenyans to easily obtain financing for construction. Towns such as Kitengela ,Rongai and Ruai literally grew overnight. Residential estates for sale came up all over the country. New high rise buildings came up around Nairobi CBD. Upper Hill , Westlands , Kilimani and Hurlingham grew overnight with numerous skyscrapers.

A shift from the previous construction materials characterized by concrete walls was noted. More high rise buildings were now being constructed with larger glass facades.

AFTER 2010 and beyond.

New highrise buildings are coming up all over the country. buildings such as Delta in Westlands have completely changed the sky scape.

Residential units have taken a new dimension into high rise from the previous bungalow and maisonette types.

Now that we have internet, the influence of new architecture and construction methods from other parts of the world will aid in hastening the movement of design type into more modern looking buildings.

Am sure that the next 10 years will completely change the way we view Real Estate. New methods of financing buildings, new construction material, higher populations and scarcity of land are some of the factors that will ensure the construction types are completely different from what we see now. Nairobi will look like Dubai or Shanghai.
Dubai.

Shanghai.

Francis Gichuhi Kamau, Architect.
0721410684

http://www.kenyafmb.org/documents/National_Construction_Authority_Bill__2011.pdf
THE NATIONAL CONSTRUCTION AUTHORITY
BILL, 2011
ARRANGEMENT OF CLAUSES
Clause
PART I!PRELIMINARY
1!Short title and Commencement.
2!Interpretation.
PART II!THE NATIONAL CONSTRUCTION
AUTHORITY
3!Establishment and incorporation of Authority.
4!Headquarters.
5!Functions of the Authority.
6!Powers of Authority.
7!Membership of the Board.
8!Vacation of office.
9!Conduct of business and affairs of the Board
10!Remuneration of Board members.
11!Delegation by the Authority.
12!Executive Director.
13!Staff of the Board.
PART III!TRADING AS A CONTRACTOR
14!Reqirement for registration.
15!Meaning of “Contractor”.
16!Application for Registration.
17!Registration of foreign contractors.
18!Registers of Contractors.
19!Publication of registers and lists.
20!Publication prima facie evidence of registration.
Inquiries by the Board
21!Inquiry into conduct of contractors.
22!Suspension.
The National Construction Authority Bill, 2011 90
23!Deletion of name.
24!Powers of the Board with regard to register.
PART IV!APPEALS BOARD
25!Establishment.
26!Board may make rules.
27!Expenses of the Appeals Board.
PART V!FINANCIAL PROVISIONS
28!Funds of the Authority.
29!Imposition of levy.
30!Financial year.
31!Annual estimates.
32!The National Construction Authority Fund.
33!Accounts and audit.
34!Investment of funds.
PART VI!MISCELLANEOUS
35!Protection from liability.
36!Common seal.
37!Significance of documents.
38!Protection of name.
39!Power to dissolve Board.
40!Power to make Regulations.
SCHEDULES
FIRST SCHEDULE!BODIES TO NOMINATE BOARD
MEMBERS.
SECOND SCHEDULE!CONDUCT OF THE BUSINESS
AND AFFAIR OF THE BOARD.
THIRD SCHEDULE—CLASSES OF CONTRACT WORKS
MEMORANDUM OF OBEJCTS AND REASONS
The National Construction Authority Bill, 2011 91
THE NATIONAL CONSTRUCTION AUTHORITY
BILL, 2010
A Bill for
AN ACT of Parliament to provide for the
establishment, powers and functions of the
National Construction Authority and for
connected purposes
ENACTED by the Parliament of Kenya, as follows—
PART I—PRELIMINARY
Short title and
Commencement.
1. This Act may be cited as the National Construction
Authority Act, 2010, and shall come into operation on such date
as the Minister may, by notice in the Gazette, appoint.
Interpretation. 2. In this Act, unless the context otherwise requires–
Cap. 446
Cap. 486
“Authority” means the National Construction Authority
established
under section 3;
“Board” means the Board of the Authority established
under section 7;
“ chairperson” means the chairperson of the Board
appointed under Section 7 (1);
“class” in relation to contract, means any of the classes of
contract works set out in the Third Schedule in respect of which
a contractor may be licensed by the Board;
“Committee” means the State Corporations Advisory
Committee established under the State Corporations Act;
“company” means a company within the meaning of the
Companies Act;
“construction site supervisor” means a person assigned to the
construction site by a contractor to supervise construction
works;
“construction industry” means the industry concerning
construction works;
The National Construction Authority Bill, 2011 92
“construction works” means the construction, extension,
installation, repair, maintenance, renewal, removal, renovation,
alteration, dismantling, or demolition of-(a) any building, erection, edifice, structure, wall, fence or
chimney, whether constructed wholly or partly above
or below ground level ;
(b) any road, harbour works, railway, cableway, canal or
aerodrome;
(c) any drainage, irrigation or river control works;
(d) any electrical, mechanical, water, gas, petrochemical or
telecommunication works; or
(e) any bridge, viaduct, dam, reservoir, earthworks,
pipeline, sewer, aqueduct, culvert, drive, shaft, tunnel
or reclamation works, and includes any works which
form an integral part of, or are preparatory to or
temporary for the works described in paragraphs (a) to
(e), including site clearance, soil investigation and
improvement, earth-moving, excavation, laying of
foundation, site restoration and landscaping.
“contractor” means a person registered under section 15;
“executive director” means the executive director of the
Authority appointed under section 12;
“member” in relation to the Board or the Appeals
Authority includes the chairman and the vice-chairman;
“Minister” means the Minister for the time being
responsible for matters relating to public works;
“person” includes a firm or body of persons, whether
corporate or unincorporate;
“register” means the Register of Contractors maintained by
the Authority in accordance with the provisions of this Act;
“registered” in relation to any contractor means a contractor
whose name is entered in the relevant register;
“Registrar” means the executive director;
The National Construction Authority Bill, 2011 93
PART II—THE NATIONAL CONSTRUCTION
AUTHORITY
Establishment and
incorporation of
Authority.
3. (1) There is hereby established an Authority to be known
as the National Construction Authority.
(2) The Authority shall be a body corporate with perpetual
succession and a common seal and shall, in its corporate name,
be capable of –
(a) suing and being sued;
(b) taking, purchasing or otherwise acquiring, holding,
charging or disposing of movable and immovable
property; and
(c) borrowing and lending money; and
(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.
Headquarters.
4. The Headquarters of the Authority shall be in Nairobi.
Functions of the
Authority.
5. (1) The object for which the Authority is established is to
oversee the construction industry and coordinate its
development.
(2) Without prejudice to the generality of subsection (1), the
Authority shall!
(a) promote and stimulate the development, improvement
and expansion of the construction industry;
(b) advise and make recommendations to the Minister on
matters affecting or connected with the construction
industry;
(c) undertake or commission research into any matter
relating to the construction industry;
(d) prescribe the qualifications or other attributes required
for registration as a contractor under this Act;
(e) assist in the exportation of services connected to the
construction industry;
The National Construction Authority Bill, 2011 94
(f) provide consultancy and advisory services with respect
to the construction industry;
(g) promote quality assurance in the construction industry;
(h) encourage the standardisation and improvement of
construction techniques and materials;
(i) initiate and maintain a construction industry
information system;
(j) provide, promote, review and co-ordinate training
programmes organized by public and private
accredited training centers for skilled construction
workers and construction site supervisors;
(k) accredit and register contractors and regulate their
professional undertakings; and
(l) accredit and certify skilled construction workers and
construction site supervisors.
(3) The Authority shall ensure that the performance of
functions under this Act is in furtherance of the policy
Government for the time being in force in relation to the
construction industry.
Powers of Authority.
6. (1) The Authority shall have all the powers necessary for
the proper performance of its functions under this Act, and, in
particular, but without prejudice to the generality of the
foregoing, the Authority shall have power to!
(a) award certificates of proficiency to contractors, skilled
construction workers and construction site supervisors;
(b) with the approval of the Minister, impose fees or any
other charges as it deems fit in respect of any of its
functions or powers;
(c) with the approval of the Minister, establish or expand, or
promote the establishment or expansion of, companies,
corporations or other bodies to carry on any activities
related to construction either under the control or partial
control of the Authority or independently; and
(d) receive, in consideration of any services that may be
rendered by it, such commission or payments as may be
The National Construction Authority Bill, 2011 95
agreed upon with any person.
Membership of the
Board.
7. (1) There shall be a Board of the Authority which shall
consist of—
(a) a chairperson, who shall to be appointed by the Minister
from among the members appointed under paragraph
(f);
(b) the Permanent Secretary in the Ministry for the time
responsible for matters relating to public works;
(c) the Permanent Secretary in the Ministry for the time
responsible for matters relating to roads;
(d) the Permanent Secretary in the Ministry for the time
being responsible for matters relating to local
government;
(e) the Permanent Secretary to the Treasury;
(f) seven members, comprising representatives of each of
the organizations specified in Part I and II of the First
Schedule and appointed by the Minister, from amongst
three persons nominated by each of the organizations;
and
(g) one member appointed by the Minister to represent
groups with special interests in the construction industry.
(2) The Minister may, by notice in Gazette, amend the
First Schedule.
(3) The members referred to under subsection (1) (b) (c)
and (d) and (e) may in writing, designate any officer not below
the level of Deputy Secretary to represent them on the Board.
(4) A person nominated by the associations set out in
Part II of the First Schedule shall qualify for appointment as a
member of the Board under paragraphs (1)(f) and if such person
is the holder of a Kenya Certificate of Secondary Education or
equivalent qualification and has at least ten years’ practical
experience in the construction industry.
(5) The chairperson and members of the Board, other
than the ex-officio members, shall hold office for a period of
three years from the date of appointment, but shall be eligible for
re-appointment for one further term.
The National Construction Authority Bill, 2011 96
Vacation of office.
8. The office of a member of the Board, other than an ex
officio member, shall become vacant if the member!
(a) resigns his office by notice in writing addressed to the
Minister;
(b) is absent from three consecutive meetings of the Board
without the permission of the chairperson;
(c) is convicted of an offence by a court and sentenced to
imprisonment for a term of six months or more without
the option of a fine;
(d) is convicted of an offence involving fraud, dishonesty or
moral turpitude;
(e) is unable, by reason of mental or physical infirmity, to
discharge his functions as a member of the Board ;
(f) is otherwise unable or unfit to continue serving as
member of the Board, or
(g) dies.
Conduct of business and
affairs of the Board.
9. 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.
Remuneration of Board
members.
10. (1) There shall be paid to the members of the Board
such remuneration, fees or allowances for expenses as the
Minister, in consultation with the Committee, may approve.
Delegation by the
Authority.
11. 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.
Executive director.
12. (1) There shall be an executive director of the Authority
who shall be 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.
(2) A person shall be qualified for appointment under this
section where such person is a holder of a degree from a
recognized university in –
(a) architecture ;
(b) quantity surveying, or
(c) engineering,
The National Construction Authority Bill, 2011 97
and is registered as a professional under the relevant law for the
time being in force, and has at least ten years’ experience in a
management position in a private or public organization.
(3) The executive director shall –
(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
(b) be the Secretary to the Board and the Registrar of
contractors.
Staff of the Board.
13. The Board may appoint such officers or other staff 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
PART III!TRADING AS A CONTRACTOR
Requirement for
registration.
14. (1) A person shall not carry on the business of a
contractor unless the person is registered by the Board under this
Act.
(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.
Meaning of
“Contractor”.
15. (1) For the purposes of this Act, a person carries on
business as a contractor where such person, for reward or other
valuable consideration, undertakes the construction, installation
or erection, for any other person, of any structure situated below,
on or above the ground, or other work connected therewith, or
the execution, for any other person, of any alteration or otherwise
to any structure or other work connected therewith, and
undertakes to a supply-(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;
(b) the labour necessary for the work, or is authorized on
behalf of the person for whom the work is undertaken
or any other person, to employ or select workmen for
employment for the purposes of the execution of the
work, whether under a contract of service or otherwise:
The National Construction Authority Bill, 2011 98
Provided that a person shall not be deemed to be a
contractor if the work undertaken!
(i) does not incur a cost exceeding such sum or sums
as the Board may from time to time determine; or
(ii) consists of a residential house for private use, not
requiring a structural design.
(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.
(3) The Minister may by notice in the Gazette amend the
Third Schedule.
Application for
Registration.
16. (1) A person or firm may apply to the Board for
registration as a contractor for purposes of this Act.
(2) An application for registration shall be in the prescribed
form and shall be accompanied by the prescribed fee, and shall
demonstrate to the satisfaction of the Board that the person, or, in
the case of a firm, at least one director or partner thereof!
(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;
(b) has the necessary experience prescribed by the Board
in works involving construction, erection, installation,
alteration or any other activity connected therewith;
(c) has professional and general conduct which in the
opinion of the Board, makes the person suitable to be
registered under this Act; and
(d) has the necessary plant and equipment for the category
of works for which the registration is sought.
(3) The Board may refuse to register a person as a
contractor if in its opinion that person!
(a) does not meet the conditions stated in subsection (2);
(b) is a member of a consulting firm providing
architectural, quantity surveying or engineering
The National Construction Authority Bill, 2011 99
services, unless the person is authorized to seek such
registration by the respective registration board; or
(c) is a person whose registration as a contractor shall
result in conflict of interest with his employer.
(4) Upon registration, the person shall be issued with a
certificate of registration indicating the registration number, the
class of works for which registered, the date of registration and
duration of registration.
(5) The certificate issued under subsection (3) shall
remain the property of the Authority and shall be withdrawn and
returned to the Authority upon suspension or cancellation of the
registration of the holder.
Registration of foreign
contractors.
17. (1) The Board may accredit a firm incorporated outside
Kenya to carry out construction works in Kenya, for a prescribed
period where the firm meets the conditions prescribed by the
Board and satisfies the Board that the firm -(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;
(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
(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.
(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.
(3) Registration of a firm under this section shall entitle
it to undertake work only for the period of time prescribed by the
Board in subsection (1), and on the expiry of that period that firm
The National Construction Authority Bill, 2011 100
shall cease to be so registered, and shall return the registration
certificate to the Board.
(4) A firm registered under this section shall during the
period of the contracted works, and in relation to things done or
omitted to be done in the course of the contracted works, be
treated as being duly registered under this Act as a contractor.
Registers of Contractors.
18.(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.
(2) The register shall contain, in respect of every person
or firm!
(a) the date of registration;
(b) the physical and postal address;
(c) the registration number;
(d) the class of works for which the person is registered;
(e) the capital and other financial resources;
(f) tools, plants and equipment;
(g) the key managerial, professional or technical and other
personnel;
(h) names and qualifications of directors or partners, who
are technically qualified or experienced in the relevant
works as prescribed by the Board;
(i) in the case of an individual, his qualifications or skills
and experience;
(j) the annual turnover of construction activities;
(k) the duration of registration;
(l) the type of registration; and
(m) any other particulars which the Board may, from time
to time, direct.
(3) The Registrar shall maintain separate registers in
The National Construction Authority Bill, 2011 101
respect of the different classes of works, and shall record any
changes in any of the particulars set out under subsection (1).
Publication of registers
and lists.
19. (1) 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 1
st
January and the 1
st
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.
Publication prima facie
evidence of registration.
20. (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.
(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.
(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.
Inquiry into conduct of
contractors.
Inquiries by the Board
21.(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.
(2) The Board may conduct such inquiry or refer it to a
subcommittee appointed by the Board for the purpose.
(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.
(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.
The National Construction Authority Bill, 2011 102
(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, contract, book, paper, specification,
quantities or other writing in that contractor’s control in any way
relating to or concerning the complaint or matter under
investigation, and may hear any evidence and inspect any
document which the complaint or the party complained against
may desire to adduce.
(6) The contractor against whom a complaint is made shall
have the right to appear before the Board and to be heard either
personally or through his advocate, and may call such evidence
and produce such documents as may be relevant.
(7) Any contractor who, having been served with a summons
or an order issued under the provisions of subsection (5), fails
without sufficient cause!
(a) to answer fully and satisfactorily to the best of his
knowledge and belief all questions put to him by or with
the concurrence of the Board; or
(b) to produce any documents in his possession or under his
control which are specified in the order,
commits an offence and is liable upon conviction to a fine not
exceeding than ten thousand shillings or to imprisonment for a
term not exceeding one year or to both.
(8) Any person giving evidence before the Board shall in
respect of any evidence given by him or any document produced
by him, be entitled to all privileges to which he would be entitled
as a witness before the High Court.
(9) The Board, having inquired into the alleged misconduct
of any Contractor, may!
(a) caution the Contractor;
(b) direct the to take such action as it may deem appropriate
in the circumstances;
(c) direct that the registration of the Contractor be
suspended for such period as it may specify; or
(d) direct that the name of the contractor be removed from
the register.
Suspension.
22. (1) The Board shall have power to suspend any contractor
if such or !
The National Construction Authority Bill, 2011 103
(a) is convicted of an offence under this Act;
(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
(c) has breached the regulations or by-laws of the Authority.
(2) In addition to the power to suspend registration given
under subsection (1) the Board may!
(a) caution or censure a registered contractor;
(b) direct that the registration of the contractor be suspended
for such period as it may specify;
(c) direct that the contractor’s name be deleted from the
Register; or
(d) take legal action against the registered contractor.
Deletion of name.
23. (1) The Board may at any time direct that the name of a
registered contractor be deleted from the register where that
contractor !
(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;
(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;
(c) fails to pay annual subscription fees for two consecutive
years;
(d) fails to meet the registration criteria set by the Authority;
(e) fails to discharge the duties, responsibilities and
obligations of a contractor;
(2) The Registrar shall delete the name of every
deregistered contractor from the register.
The National Construction Authority Bill, 2011 104
(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 delivery or a registered letter to
the address appearing in the register against his name
immediately prior to the deletion.
(4) A contractor whose name has been deleted from the
register under this section shall, with effect from the date of the
deletion, cease to be registered for the purpose of this Act, and
shall be obliged to immediately surrender to the Board the
certificate of registration for cancellation.
(5) Where the name of any contractor has been deleted
from the register, that contractor shall not be registered afresh
under any other name.
Powers of the Board
with regard to register.
24. (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.
(2) Where the name of any contractor has been deleted
from the register or the contractor has been suspended in terms
under 22, the Board may, either of its own motion or on
application in the prescribed manner by the contractor concerned,
and in either case after holding such inquiry as the Board may
deem fit, direct that!
(a) the deletion of the contractor’s name from the register
be confirmed ;
(b) the name of that contractor be restored to the register; or
(c) the suspension of the contractor be lifted.
(3) A direction by the Board under subsection (2) may
include a provision of the date for -(i) the restoration of the contractor’s name to the
register;
(ii) the lifting of the suspension of the contractor; or
(iii) the payment by the contractor of such penalty, not
exceeding the fee payable for registration, as the
Board may determine.
(4) Any contractor aggrieved by a decision of the Board to—
(a) refuse to register the contractor;
(b) delete the contractor’s name from the register; or
(c) suspend the contractor;
may appeal to the Appeals Board against the decision of the
Board and the Appeals Board may give such directions in the
The National Construction Authority Bill, 2011 105
matter as it deems proper.
(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.
Establishment.
PART IV—APPEALS BOARD
25. (1) There is established a board to be known as the
National Construction Appeals Board (hereinafter referred to as
“the Appeals Board”).
(2) The Appeals Board shall consist of the following
persons, who shall be appointed by the Minister!
(a) a chairperson, being an advocate of the High Court of
Kenya, who shall be nominated by the Attorney-General;
(b) a person with professional knowledge and experience
in architecture, quantity surveying, engineering,
building surveying or project management; and
(c) a person nominated by the Chartered Institute of
Arbitrators (Kenya Chapter).
(3) An appeal shall lie to the Appeals Board at the suit of
any person aggrieved by a decision of the Board under section.
(4) A person aggrieved by the decision of the appeals
Board may appeal to the High Court.
Board may make the
rules
26. The Appeals Board may make rules for or with respect
to the filing, hearing and disposal of appeals and other matters
before it.
Expenses of the Appeals
Board.
27. The expenses of the Appeals Board shall be provided
by the Ministry.
PART V – FINANCIAL PROVISIONS
Funds of the Authority.
28. The funds of the Authority shall consist of –
(a) such income as may be provided by Parliament for the
purposes of the Authority;
The National Construction Authority Bill, 2011 106
(b) such monies as may accrue to the Authority in the
performance of its functions under this Act;
(c) all the proceeds of the levy imposed under section 29;
and
(d) all monies from any other source provided for or donated
or lent authority.
Imposition of levy.
29. (1) The Minister 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.
(2) The levy shall be in an amount not exceeding an
equivalent of 0.25% of the value of any contract whose value
exceeds five million shillings.
(3) The Minister may make regulations prescribing the
manner of payment of the levy.
Financial year.
30. The financial year of the Authority shall be the period of
twelve months ending on the thirtieth June in each year.
Annual Estimates.
31. (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.
(2) The annual estimates shall make provision for all estimated
expenditure of the Authority for the financial year, and, in
particular, shall make provision for!
(a) the payment of salaries, allowances, pension gratuities,
and other changes in respect of the staff of the Authority;
(b) proper maintenance of the buildings and grounds of the
Authority; and
(c) the maintenance, repair and replacement of the utilities,
equipment and other property of the Authority.
(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 Minister for approval, and
thereafter the Authority shall not increase or decrease the annual
estimates except with the authority of the Minister.
The National
Construction Authority
Fund.
32. (1) There shall be established a Fund to be known as the
National Construction Fund, which shall vest in the Authority.
(2) There shall be paid into the Fund!
The National Construction Authority Bill, 2011 107
(a) the initial budgetary provision by the Government as
start-up capital for the establishment of the Authority;
(b) the charges levied on contractors on services given by the
Authority;
(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;
(d) all proceeds from the levy imposed under section 26; and
(e) all moneys from any other source provided for or donated
or lent to the Authority;
(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.
(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.
(5) The Board may with the approval of the Minister, set a
ceiling of the money which may be spent on recurrent
expenditure in any one year.
Accounts and audit.
No 12 of 2003
33. (1) The Board shall cause to be kept all proper books and
records of account of the income, expenditure and assets of the
Authority.
(2) Within a period of three months from the end of each
financial year, the Authority shall submit to the Controller and
Auditor General the accounts of the Authority together with—
(a) a statement of the income and expenditure of the
Authority during that year; and
(b) a statement of the assets and liabilities of the Authority
on the last day of that year.
(3) The accounts of the Authority shall be audited and
reported upon in accordance with the Public Audit Act, 2003.
(4) The Authority shall ensure that in any financial year
expenditure and commitments from the Account shall not exceed
The National Construction Authority Bill, 2011 108
the annual income of the Fund together with any surplus income
brought forward from a previous year.
Investment of funds.
34. (1) The Authority may, with the approval of the
Minister!
(a) invest any of its surplus funds in Government securities;
(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.
Cap. 485A.
(2) In this section, “approved securities exchange” means
a securities exchange approved under the Capital Markets Act.
PART VI—MISCELLANEOUS
Protection from liability.
35. (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.
(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.
Common seal.
36. (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.
(2) The common seal of the Authority shall be authenticated
by the signature of the chairperson and the executive director.
(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 Council under
this section shall be deemed to have been duly given.
Signification of
documents.
37. All documents other than those required by law to be
under seal made on behalf of the Board shall be signified by the
The National Construction Authority Bill, 2011 109
hand of the chairman of the Board, the Executive Director, or
any other member of the Council specifically authorized by the
Council in that behalf.
Protection of name.
38. 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 twelve months or a fine not exceeding thirty thousand
shillings or to both such fine and imprisonment.
Power to dissolve
Board.
39. Notwithstanding any other provision of this Act, the
Minister may by notice in the Gazette dissolve the Board where
the Board performs its functions in a manner which is
inconsistent with this Act.
Power to make
Regulations.
40. (1) The Minister may in consultation with the Board,
make regulations generally for the better carrying out of the
purposes of this Act.
(2) Without prejudice to the generality of the foregoing,
regulation made under this section may provide for!
(a) the manner of payment of the levy imposed under
section 29;
(b) the manner of service of any notice required under
Act;
(c) the fees and charges to be paid in respect of any matter
required for purposes of this Act;
(d) the manner and forms of accreditation and certification
of contractors, skilled construction workers and
construction site supervisors;
(e) the responsibilities and control of the officers and
servants of the Authority;
(f) the performance of the functions, the exercise of the
powers and discharge of the duties of the Authority
under this Act, and
(g) any other matter to give effect to the provisions of this
Act.
The National Construction Authority Bill, 2011 110
FIRST SCHEDULE (S.7(1)(f)
Bodies to Nominate Board members
PART I
1. Architectural Association of Kenya;
2. The Institution of Engineers of Kenya;
3. The Institute of Quantity Surveyors of Kenya;
4. Law Society of Kenya.
PART II
1. The Kenya Federation of Master Builders,
2. The Kenya Association of Building and Civil
Engineering Contractors
3. The Roads and Civil Engineering Contractors
Association.
SECOND SCHEDULE (S.9)
CONDUCT OF THE BUSINESS AND AFFAIRS OF
THE BOARD
1. The Board shall meet at least four times in every
financial year and not more than two months shall elapse
between the date of one meeting and the date of the next meeting.
2. Notwithstanding paragraph 1, the chairperson may at any
time, and shall, within one month of the receipt by him of a
written request signed by at least seven members of the Board,
convene a special meeting of the Board.
3. The quorum for the conduct of the business of the Board
shall be seven members.
4. The chairperson shall preside at every meeting of the
Board at which he is present, but in the absence of the
chairperson the members present shall elect one among their
number to preside, and such member shall, as concerns that
meeting, have all the powers of the chairperson.
5. The decisions of the Board shall be carried by the
The National Construction Authority Bill, 2011 111
votes of a majority of the members present, but in the case of an
equality of votes the chairperson or person presiding shall have
a casting vote.
6. The members may appoint committees from among
themselves or otherwise, to carry out such general or special
functions as may be specified by the Board.
7. Any member who has a direct or indirect interest in any
decision to be taken on any specific matter by the Board, shall
disclose the nature of such interest at the meeting of the Board
where such decision is being taken, and the disclosure shall be
recorded in the minutes of the meeting, and if majority of the
members of the Board believe that such member’s interest in the
matter is such as to influence his judgment, he shall not
participate in the deliberation or the decision of the Board on
such matter.
8. Except as provided in this Schedule, the Board may
regulate its own procedure.
THIRD SCHEDULE (S.15(2)
CLASSES OF CONCTRACT WORKS
A—Building Works
(a) General Building Contractor;
(b) Carpentry/Joinery;
(c) Painting;
(d) Masonry;
(e) Reinforced masonry works;
(f) Specialized building works.
B—Civil Engineering
(a) Roadworks;
(b) Structural Works;
(c) Boreholes;
(d) Site Investigation Works;
(e) Sewers.
C – Electrical Engineering Services
(a) Electrical Installation;
(b) Electronic
(i) Telecommunications 9PABX, intercoms and
telephone wiring);
The National Construction Authority Bill, 2011 112
(ii) Electronic communications (public address systems
and conferences systems);
(iii) Road Communications;
(iv) Structured Cabling and computer networking
Installations;
(v) Security Surveillance Systems (CCTV and intruder
Alarm systems)
(c) Lift and Escalators Installation;
(d) Generating Plants and Control Panels;
(e) Solar Power Generation;
(f) Photovoltaic Installation.
D—Mechanical Engineering Services
(a) Plumping, Drainage and Sanitary Fittings;
(b) Refrigeration, Air-Conditioning and Ventilation;
(c) Kitchen and Laundry Equipment and refuse disposal
systems;
(d) Boilers, Incinerators and Pressure Vessels;
(e) Solar Heating Systems;
(f) Water Tanks, Treatment Plant and Pumping plant;
(g) Compressed Air, Hydraulic, LP and Medical Gas
Installation;
(h) Cranes and Hoists;
(i) Fire Engineering Services;
(j) Health club facilities;
(k) Borehole equipment;
(l) Hospital Equipment;
(m) Mobile shelving.
The National Construction Authority Bill, 2011 113
MEMORANDUM OF OBJECTS AND REASONS
The main purpose of this Bill is to provide a legal and institutional framework for
the development of the local construction industry. This will be achieved
through capacity building and training and the regulation of contractors.
Part I of the Bill contains preliminary provisions.
Part II of the Bill establishes and incorporates the National Construction
Authority and assigns functions to it. The Authority is mandated to oversee the
construction industry and co-ordinate its development. Among its functions are
the promotion of the development of the industry, registration of contractors, the
standardization and improvement of construction techniques and materials and
accreditation and certification of skilled construction workers and construction
site supervisors. The Authority is empowered to, among other things, establish
or promote the establishment of construction companies.
Under this Part is established the Authority whose membership comprises
representatives of professional and other construction-related organizations and
representative of a special interest group.
Part III has provisions on trading as a contractor.
Clause 15 defines the activities to which the Bill relates.
The Part has provisions on the registration of local and foreign contractors and
the conditions attaching to each.
The Board is empowered to carry out inquiries into the conduct of registered
contractors and impose sanctions where appropriate, including suspension of
registration and deletion of the offending contractor’s name from the register.
Part IV contains the financial provisions. These include the powers of the
Minister to impose a levy on construction work, and the establishment of a Fund
into which the same and other funds of the Authority should be paid.
Part V has several miscellaneous provisions, including the power of the Minister
to dissolve the Board where it acts in a manner inconsistent with the enacted
provisions, and the power to make regulations.
The First Schedule to the Bill has the list of bodies which may nominate
members to the Board.
The Second Schedule provides for the conduct of the business of the Board.
The National Construction Authority Bill, 2011 114
The Third Schedule specifies the classes of works in respect of which a
contractor may be registered to operate under the Act.
The enactment of this Bill shall occasion additional expenditure of public funds
in the first three years after its enactment, which shall be provided for in the
estimates. It is expected that thereafter the Authority shall become self-sustaining from its revenue.
Dated the 4th January, 2011.
C. M. OBURE,
Minister for Public Works.

HOUSING PROJECT, BAMBURI, MOMBASA
Cost Item	Kshs	%
Land	330,000,000.00	24.79599657
Preliminary	2,400,000.00	0.180334521
Construction	756,000,000.00	56.80537397
External Works	22,680,000.00	1.704161219
Contingency	11,340,000.00	0.85208061
Professional fees	37,800,000.00	2.840268698
Project Management fees	7,560,000.00	0.56805374
Marketing	27,000,000.00	2.028763356
Financial Charges	136,080,000.00	10.22496731
Total	1,330,860,000.00	100
Financing Plan	Kshs	%
Developer	574,860,000.00	43.19462603
	0.00	0
Debt Finance	756,000,000.00	56.80537397
Presales	6,750,000.00	0.507190839
Total	1,330,860,000.00	100.5071908
PROFIT
TOTAL SALES FOR 240 UNITS	1,800,000,000.00
TOTAL EXPENDITURE	1,330,860,000.00
NET PROFIT	469,140,000.00
% Profit Margin	35.2508904
Take home ammount.	799,140,000.00