How to Start a Construction Company in Kenya (2026): NCA and Costs

Construction is one of Kenya’s biggest industries. A well-run small contractor can grow from house extensions to bigger projects. Here are the steps.

Step-by-Step Registration

1. Register a limited company or business name on eCitizen (Business Registration Service).
2. Get the company KRA PIN and keep tax returns up to date.
3. Register with NCA as a contractor (works category and grade) with your documents, technical staff and equipment details.
4. Get a county business permit for your office.
5. Open a business bank account and keep proper books.

NCA Categories in Brief

NCA grades contractors from NCA 1 (largest projects) to NCA 8 (smallest), in categories such as building works, civil works, electrical and mechanical. New firms usually start in a lower grade and upgrade as they gain experience and capital. Check current requirements and fees on the NCA website.

Equipment and Team

• Start with hand and power tools; hire heavy machinery per job.
• A qualified foreman, masons, steel fixers, carpenters, plumbers and electricians.
• Safety gear for every worker.

Finding Work

• House construction and renovations for private clients.
• Subcontracting for larger contractors.
• Government tenders on the public procurement portal once you are compliant (AGPO preference exists for youth, women and PWD-owned firms).
• A free Buy More Mall shop showing your projects and services.

Buy Materials at Good Prices

Margins in construction depend on material costs. Compare live prices: building materials price list, cement and steel bars. Sell your surplus or supply business: sell construction materials online.

Not sure which one fits? Send us your details on WhatsApp or through the product page and we will help you choose.

Documents to Prepare

Common Mistakes

• Bidding for jobs bigger than your cash flow.
• Underpricing to win, then failing to finish.
• No contracts with clients and subcontractors.
• Letting tax compliance lapse.
• Ignoring site safety.

Frequently Asked Questions

How do I start a construction company in Kenya?

Register the company, get a KRA PIN and tax compliance, register with NCA, get a county permit and build a track record.

What is NCA registration?

Registration of contractors by the National Construction Authority in categories and grades from NCA 1 to NCA 8.

How much does it cost to start a construction company?

Registration and compliance costs are modest; working capital for materials and labour is the real requirement.

Which NCA category should I start with?

Usually a lower grade that matches your capital and experience; upgrade later.

How do I get construction tenders in Kenya?

Stay tax-compliant, register on the public procurement portal and start with smaller tenders or subcontracting.

Do I need an engineer to start?

NCA requires qualified technical staff depending on the category; check the current requirements.

Prices shown are regular prices on Buy More Mall. Many products are currently on offer, so open the product page to see today's price.

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• Building Materials Price List
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