Companies

Bill spares youth, women firms from construction agency listing fees

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MPs during a session at Parliament chambers. PHOTO | FILE

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Summary

  • Category seven involves projects worth Sh10 million for building contractors, Sh5 million for specialist contractors and Sh20 million for roads and other civil works.
  • The category includes building contractors seeking to undertake projects of up to Sh50 million, specialist contractors (Sh20million) and roads and other civil works (Sh100 million).

Firms owned by women and youth will not pay registration fees to the construction agency if MPs approve a new Bill into law.

Startups owned by women, youth and people with disabilities that apply for the National Construction Authority (NCA) board as contractors registration will be exempted from paying the prescribed fee.

“Despite subsection 2, women, youth and persons with disabilities who apply to be registered by the board as contractors shall be exempt from paying the prescribed registration fee where the fee does not exceed Sh15,000,” states the National Construction (Amendment) Bill.

Currently, local contractors pay registration charges of between Sh5,000 and Sh100,000, depending on their categories while annual practice licence renewal costs between Sh2,500 and Sh30,000. Foreign contractors pay Sh250,000 and are restricted to categories of tenders they win.

The Bill, sponsored by Nakuru Town East MP David Gikaria seeks to amend the NCA Act 2011 to ensure women, youth and disabled persons with startups seeking registration under categories six, seven and eight are exempted from paying the prescribed fees.

“The amendment seeks to recognise women, youth and persons living with disabilities as marginalised groups and to cushion them from the burden of paying registration fees,” said Mr Gikaria in the Bill’s memorandum of objects and reasons.

Category six involves those wishing to undertake projects of up to Sh50 million for building contractors, Sh20 million for specialists’ contractors and Sh100 million for road and other civil works.

Category seven involves projects worth Sh10 million for building contractors, Sh5 million for specialist contractors and Sh20 million for roads and other civil works.

The category includes building contractors seeking to undertake projects of up to Sh50 million, specialist contractors (Sh20million) and roads and other civil works (Sh100 million).

Foreign contractors applying for temporary registration are required to commit to sub-contract “not less than 30 per cent of the value” to local contractors.