THE NATIONAL CONSTRUCTION AUTHORITY BILL, 2009

No._ of 2009
Date of Assent: ____________, 2009
Date of Commencement: By Notice.

ARRANGEMENT OF SECTIONS

Sections

PART 1 PRELIMINARY

1 – Short title and Commencement.

2 – Interpretation
3 – Application

PART II – ESTABLISHMENT, POWERS AND FUNCTIONS OF THE

NATIONAL CONSTRUCTION AUTHORITY

4 – Establishment and incorporation of the National Construction Authority.

5 – Headquarters
6 – Functions of the Authority
7 – Powers of the Authority
8 – Membership of the Board
9 – Conduct of business and affairs of the Authority
10 – Remuneration of Board members
11 – Delegation by the Authority
12 – Executive Director
13 – Staff of the Authority
14 – The common seal of the Authority
15 – Protection from personal liability
16 – Liability of the Authority for damages
17 – Notice to require particulars
18 – Obligation of secrecy
19 – Power to make regulation
20 – Conduct of prosecution
21 – General penalty

PART III – FINANCIAL PROVISIONS

22 – The National Construction Authority Fund

23 – Advances to the Authority
24 – Investment of funds
25 – Financial year
26 – Annual estimates
27 – Accounts and audit

1
PART IV – MISCELLANEOUS PROVISIONS

28 – Rules and By-laws

29 – Powers of the Minister
30 – Offences and penalties
31 – Dissolution of the Board

FIRST SCHEDULE - PROVISIONS RELATING TO THE

NOMINATION OF DIRECTORS OF THE AUTHORITY

SECOND SCHEDULE - PROVISIONS AS TO THE CONDUCT OF

BUSINESS AND AFFAIRS OF THE AUTHORITY

1 – Committees and co-opted advisors

2 – Vacation of office by Board members
3 – Meetings of the Board
4 – Disclosure of interest
5 – Common Seal of the Authority
6 - Registers of contractors
7 – Publication of registers and lists
8 – Publication prima facie evidence of registration
9 – Qualification for registration of contractors
10 – Temporary registration
11 – Power to cancel registration
12 – Restoration to register
13– Powers to suspend registration etc.
14 – Proceedings at an Inquiry
15 – Disobedience to summons and refusal to give evidence
16 – Appeals against decisions of the Board
17 – Appeals Board
18 – Rules regulating proceedings before the Appeals Board
19 – Use of description “Registered” and effect of registration
20– Restrictions on carrying on business as contractor
21 – Bodies of persons operating as contractors
22 – Definitions of “carrying on business” or trading as “contractor”

2
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

1. This Act may be cited as the National Construction Authority Act, 2008 Short title and
and shall come into operation on such date as the Minister may, by notice in Commencement
the Gazette, appoint.

2. In this Act, unless the context otherwise requires – Interpretation

“the Authority” means the National Construction Authority established
under section 4 of this Act;
“the Board” means the Board of directors established under section 8 of this
Act;
“appointed director” means a director appointed under paragraph (a) of
subsection (1) of section 8 of this Act;
“the Executive Director” means the Chief Executive Officer, who will also be
the Registrar for contractors, appointed in pursuance of section 12 of this Act;
“director” means any person who is a member of the Board;
“Minister” means the Minister for the time being responsible for matters
relating to public works;
“staff’ means the officers and servants of the Authority appointed under
section 13 of this Act;
"company" means a company formed and registered under the Companies Act Cap. 486
or any of the repealed ordinances;
"contractor" means
(a) Any person who for a 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, where such person undertakes to
do any such work -
(i) himself supplies the material necessary for the work or is authorized to
exercise control over the type, quality or the use of material supplied by any
other person;
(ii) himself supplies 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 for employment workmen to assist him in the execution of
the work: or
(b) Any person who himself as a developer or investor, undertakes the
construction, erection, installation or alteration of any structure, for public use
or otherwise, situated below, on or above the ground or other work connected
therewith, or the execution of any alteration or otherwise to any structure, for
public use or otherwise, or other work connected therewith, where such person

3
undertaking to do any such work -
(i) himself supplies the labour necessary for the work or is authorized to
exercise control over the type, quality or the use of material supplied by any
other person; or
(ii) himself is authorized on behalf of the person for whom the work is
undertaken or any other person, to employ or select for employment workmen
to assist him in the execution of the work;
Provided that a person shall be deemed not to be a contractor, for the purposes
of this Act if he at no time undertakes or holds himself out as willing to
undertake any work the cost of construction, erection, installation, alteration or
completion of which does not exceed such a sum as shall be determined by the
Board from time to for different disciplines of the construction industry; or
undertakes or holds himself out as willing to undertake construction of a
residential house for his own family (not for public use), which does not
require an input of structural design.
“Certificate of Registration” means a certificate of compliance issued by the
Authority;
“Member” in relation to the Board or the Appeals Authority includes the
Chairman and the Vice-Chairman;
“person” means a natural person, body of persons whether corporate or
unincorporate;
“Registers” means the Register of Contractors maintained by the Authority in
accordance with the provisions of this Act;
“registered” in relation to any contractor means contractor whose name is
entered in the relevant register;
“Registrar” means the Registrar appointed in accordance with the provisions of
section 12
"construction site supervisor" means a person assigned to the construction site
by the contractor to supervise the construction works;
"construction industry" means the industry concerning construction works;
"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.

4
3. The provisions of this Act shall apply, as more specifically provided in the Application
Act, to the management of the entire construction industry in Kenya.

PART II – ESTABLISHMENT, POWERS AND FUNCTIONS OF THE

NATIONAL CONSTRUCTION AUTHORITY

4. (1) There is hereby established an Authority to be known as the National

Construction Authority. Establishment
(2) The Authority shall be a body corporate with perpetual succession and a and
common seal and shall, in its corporate name, be capable of – incorporation of
(a) suing or being sued; the National
(b) taking, purchasing or otherwise acquiring, holding, charging or disposing Construction
Authority
of movable and immovable property; and
(c) doing or performing all other things or acts for the furtherance of the
provisions of this Act which may be lawfully done or performed by a body
corporate.
(3) The provisions of the schedules to this Act, shall have effect as to the
constitution and proceedings of the Board and otherwise in relation to the
Authority.
(4) The Minister may, after consultation with the Authority, by order published
in the Kenya Gazette, amend, add to, vary, revoke or replace the provisions of
the schedules.

5. The Headquarters of the Authority shall be in Nairobi. Headquarters

6. (1) The object and purpose for which the Authority is established is to Function of the
oversee the construction industry and coordinate its development. Authority
(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) promote, stimulate and undertake research into any matter relating to the
construction industry;
(d) promote, stimulate and assist in the export of service relating to the
construction industry;
(e) provide consultancy and advisory services with respect to the construction
industry;
(f) promote quality assurance in the construction industry;
(g) encourage the standardisation and improvement of construction techniques
and materials;
(h) initiate and maintain a construction industry information system;
(i) provide, promote, review and coordinate training programs organized by
public and private construction accredited training centres for skilled
construction workers and construction site supervisors;
(j) accredit and register contractors and to cancel, suspend or reinstate the

5
registration of any registered contractor; and
(k) accredit and certify skilled construction workers and construction site
supervisors.
(3) It shall be the responsibility of the Authority in performing its functions
under this Act to ensure that the functions are performed in such manner as
shall be in furtherance of the policy of the Government for the time being in
force and in particular relating to the construction industry.

7. (1) The Authority shall have power to do all things expedient or reasonably Powers of the
necessary for, or incidental to, the performance of its functions and, in Authority
particular, but without prejudice to the generality of the foregoing, the
Authority shall have power to –
(a) to carry on all activities, particularly activities in respect of the construction
industry, the carrying on whereof appears to it to be requisite, advantageous or
convenient for or in connection with the performance of its functions;
(b) to award certificates of proficiency to contractors, skilled construction
workers and construction site supervisors;
(c) to impose fees or any other charges as it deems fit for giving effect to any
of its functions or powers;
(d) with the approval of the Minister, to establish or expand, or promote the
establishment or expansion of, companies, corporations or other bodies to
carry on any such activities either under the control or partial control of the
Authority or independently;
(e) to receive, in consideration of any services that may be rendered by it, such
commission or payments as may be agreed upon with any person; and
(f) to do such other things as it deems fit to enable it to carry out its functions
and powers effectively.

8. (1) The Board of the Authority shall consist of –

Membership of
(a) a Chairman to be appointed by the Minister from among the members the Board
appointed under paragraph (f);
(b) the Executive Director whose position shall be filled by the Board through
public advertisement;
(c) the Permanent Secretary of the ministry responsible for matters relating to
public works;
(d) the Permanent Secretary of the ministry responsible for matters relating to
roads;
(e) the Permanent Secretary of the ministry responsible for matters relating to
Local Government;
Provided that any Permanent Secretary aforesaid may deputize in writing any
other person not below the level of Deputy Secretary to be a director in his
place.
(f) four other members comprising, representatives of each of the organizations
specified in the First schedule and appointed by the Minister from amongst
three persons nominated by each of the organizations;
(g) two other members representing special interest groups to be appointed by
the Minister;

6
(2) the Minister may, by notice in Gazette amend the First Schedule;
(3) No person shall qualify for appointment as a member of Board of the
Authority under paragraph (f) and (g) of subsection (1) unless such person is
holder of a Kenya Certificate of Secondary Education or an equivalent
qualification and has at least ten years practical experience in the Construction
Industry.
(4) The Chairman 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 of a
period not exceeding three years.
(5) The names of all members of the Board as first constituted and at
every change in membership thereafter shall be published in the Kenya
Gazette.

9. (1) The conduct and regulation of the business and affairs of the Authority Conduct of
shall be as provided in the Second Schedule. business and
(2) Except as provided in the Second Schedule, the Board may regulate its affairs of the
own procedure. Authority

10. (1) The Authority shall pay members of Board of the Authority such Remuneration of
remuneration, fees or allowances for expenses as it may determine after Authority
consultation with the State Corporations Advisory Committee (SCAC). members

11. The Authority may, by resolution either generally or in any particular case,
Delegation by
delegate to any committee of the Authority or to any member, officer, the Authority
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.

12. (1) There shall be an Executive Director of the Authority who shall be Executive
a competent professional appointed by the Minister from a list of 3 names of Director
shortlisted persons by the authority following competitive interviews and
whose terms and conditions of service shall be determined by the Authority in
the instrument of appointment or otherwise in writing from time to time.
(2) No person shall be appointed under this section unless such person –
(a) is a holder of a degree in any of the professions engaged in the construction
industry (Architecture, Quantity Surveying, Civil, Electrical, Mechanical
Engineering) of a university for the time being recognized by the Board of
Registration of Architects and Quantity Surveyors or Engineers Registration Cap 525
Cap 530
Board and is registered within the meaning of the Act that regulates the
practice of his profession.
(b) has at least eighteen years practical experience in the relevant field, at least
three of which must have been gained in a senior managerial capacity.
(3) The Executive Director shall –
(a) be an ex-officio member of Board of the Authority and shall have no right
to vote at any meeting of the Board;
(b) be the secretary to the Board of the Authority and the Registrar for

7
contractors; and
(c) subject to the directions of the Authority, be responsible for the day to day
management of the affairs of the Authority.

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

14. (1) The common seal of the Authority shall be kept in such custody as the The common
Board may direct and shall not be used except on the resolution of the Board of seal of the
the Authority. Authority
(2) The common seal of the Authority when affixed to a document and duly
authenticated shall be judicially and officially noticed and unless and until the
contrary is proved, any necessary resolution or authorization by the Authority
under this section shall be presumed to have been duly given.

15. No matter or thing done by a member of the Authority or any officer,

Protection from
employee or agent of the Authority shall, if the matter or thing is done bona
personal liability
vide for executing the functions, powers or duties of the Authority, render the
member, officer, employee or agent or any person acting on his directions
personally liable to any action, claim or demand whatsoever.

16. The provisions of section 15 shall not relieve the Authority of the liability
Liability of the
to pay compensation or damages to any person for an injury to him, his Authority for
property or any of his interests caused by the exercise of the powers conferred damages
on the Authority by this Act or by any written law or by the failure, whether
wholly or partially, of any works.

17. (1) For the purpose of carrying out its functions under section 6, the Notice to require
Authority may by notice in the prescribed form require any contractor or their particulars
representative to furnish any particulars which are within the contractor’s
knowledge, or which he is able to obtain, relating to any construction works in
such manner and form as the Authority may specify.
(2) The notice under subsection (1) may be served by delivering it to the
person at the construction site, his working place or at his residence or
publicized in the newspapers.
(3) A notice may require the information to be furnished at specific times or
within specific intervals.
(4) The Authority shall not require any person to supply information which
will disclose any trade secret.

18. (1) Except for any of the purposes of this Act or for the purpose of any
civil or criminal proceedings under any written law, no member, officer or Obligation of
secrecy
servant of the Authority shall disclose any information which has been
obtained by him in the course of his duties and which is not published in
pursuance of this Act.

8
(2) Any person contravening subsection (1) shall be guilty of an offence and
shall, on conviction, be liable to a fine not exceeding five thousand Kenya
shillings or to imprisonment for a term not exceeding six months or to both.

19. (1) The Authority may make recommendations to the Minister for the Power to make
formulation of such regulations as may be expedient or necessary for the better regulations
carrying out of the provisions of this Act.
(2) Without prejudice to the generality of subsection (1), regulations may be
made for-
(a) prescribing the manner and form for the collection of levy;
(b) prescribing the form and manner of service of any notice required under
this Act;
(c) prescribing the fees and charges to be paid in respect of any matter required
for the purposes of this Act;
(d) prescribing the manner and forms for the accreditation and certification of
contractors, skilled construction workers and construction site supervisors;
(e) prescribing the responsibilities and control of officers and servants of the
Authority;
(f) providing generally for the performance of the functions, the exercise of the
powers and discharge of duties of the Authority under the provisions of this
Act; and
(g) any other matter generally to give effect to the provisions of this Act.

20. No prosecution for any offence under this Act shall be instituted except Conduct of
with the consent in writing of the Public Prosecutor.(check with AG) prosecution

21. Any person who by any act or omission contravenes any provision under
this Act or any regulations made hereunder shall be guilty of an offence and General penalty
where no penalty is expressly provided shall, on conviction, be liable to a fine
not exceeding five thousand Kenya shillings.

PART III – FINANCIAL PROVISIONS

22. (1) There shall be established an account which shall vest in the Authority. The National
(2) There shall be paid into the Account - Construction
(a) Initial budgetary provision by the government as start-up capital for the Authority
establishment of the Authority; Account
(b) charges levied to contractors on services given by the Authority;
(c) all moneys from any other source provided for or donated or lent to the
Authority;
(d) all proceeds from the Construction Levy Fund which shall be charged at
0.25% of all contracts above Kshs. 5 million.
(e) 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;
(f) such sums as may be payable to the Authority pursuant to this Act or any

9
other written law, or pursuant to any gift or trust.
(g) registration and annual subscription fees paid by registered contractors;
(h) such sums as the Authority may be provided for the purposes of the Board
by Parliament in a form of Government subvention;
(i) such sums as the Authority may receive by way of grant from any person or
organization;
(j) such sums as may, in any manner, become payable to or vested in the Board
either under the provisions of this Act or any other written law, or
incidental to the carrying out of its functions.

(3) All receipts, savings and accruals for the Account and the balance of the
Account at the end of the financial year shall be retained for the purposes for
which the Account is established.
(4) There shall be paid out of the Account any expenditure incurred by the
Authority in the exercise of its powers or the performance of its functions
under this Act.
(5) The Authority shall with the approval of the Minister, set a ceiling of the
money which in any one year may be spent on recurrent expenditure.

23.(1) The Authority shall ensure that in any financial year expenditure and Advances to the
commitments from the Account shall not exceed the annual income of the Authority
Account together with any surplus income brought forward from a previous
year.
(2) If, in exceptional circumstances, the income from the Account or other
funds together with any surplus income brought forward from a previous year
is insufficient to meet the actual or estimated expenditure of the Authority, the
Minister of Finance may, with the approval of Parliament, make advances to
the Authority and such advances shall be made on such terms and conditions,
whether as to repayment or otherwise, as the Minister for Finance may
determine, provided that any such advance shall be repaid from the income of
the Account. (exceptional circumstances to be clarified)

24.(1) The Authority may with the approval of the Minister:

Investment of
(a) invest any of its surplus funds in Government securities; funds
(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.
(2) In this section, “approved securities exchange” means a securities exchange
Cap 485A
approved under the Capital Markets Act,

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

26. (1) The Authority shall cause to be prepared estimates of the revenue and Annual estimates
expenditure of the Authority not later than the end of February in every year.
(2) The annual estimates shall make provision for all estimated expenditure of

10
the Authority for the financial year and in particular, the estimates shall
provide for-
(a) the payment of salaries, allowances and other charges in respect of the staff
of the Authority;
( b) the payment of pensions, gratuities and other charges in respect of the staff
of the Authority;
(c) proper maintenance of the buildings and grounds of the Authority; and
(d) 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 concurrence of the Treasury before
implementation; and thereafter, the Authority shall not increase or decrease the
annual estimates.

27. (1) The Authority shall cause to be kept all proper books and records of
account of the income, expenditure and assets of the Authority. Accounts and
Audit
(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 Public Audit Act
accordance with the Public Audit Act, 2003 by the Controller and Auditor Cap
General.
(4) The Authority shall inform and keep the public informed of its activities
and operations through regular publications and such activities and operations
shall be accessible to the public unless there are reasons of commercial
confidentiality or security justifying exclusions.
(5) The decision of the Authority to exclude information from the public shall
be subject to judicial review.

PART IV – MISCELLANEOUS PROVISIONS

28. The Authority, with the approval of the Minister, may make rules and by-
laws generally for carrying out of its functions under this Act and in particular, Rules and By-
laws
for prescribing -
(a) anything required by this Act to be prescribed;
(b) penalties for the failure by any contractor to comply with any directions
issued under section 19;
(c) remedial, supplementary or alternative measures to be taken in respect of
contractors or their agencies which persistently fail in the discharge of their
functions.
(d) prescribing rules for conduct and ethics for contractors;

11
(e) categorizing, classifying and specifying types of contractors;
(f) setting class limits for different classes of different types and categories of
contractors; and reviewing these limits at the Boards discretion;
(g) prescribing conditions to be met for being eligible to be registered in a
given class;
(h) prescribing the fees to be paid on application, registration and annual
subscription, the issue of certificates of registration and extracts, copies and
lists of, or in relation to, entries in the registers;
(i) prescribing certificates, awards and other qualifications which shall be
recognized as entitling the holder to registration under this Act;
(j) prescribing certificates and other awards which may be conferred or granted
by the Board;
(k) prescribing fees for admission to any course, seminar, conference,
symposium or workshop offered or conducted by the Authority;
(l) prescribing conditions to be met for upgrading of classes of contractors;

29.(1) The Minister for Public Works may -

Powers of the
(a) give directions of a general nature to the Authority relating to the execution
Minister
of its functions under this Act; and
(b) provide policy guidelines to the Authority.

30. (1) Any person who appropriates or applies or causes any other person to
Offences and
appropriate or apply, any proceeds or assets of the Authority or the Fund
penalties
otherwise than in accordance with the Act or the directions of the Board, shall
be guilty of an offence and shall, upon conviction, be liable in addition to any
other penalties which the Authority may prescribe, to the penalties prescribed
in the Penal Code Cap 63. Cap 63
(2) In addition to the penalties referred to in subsection (1), all proceeds or
assets found to have been misappropriated shall be recovered in full from a
person found guilty of an offence under this section.

31. The Minister for Public Works may, by notice in the Kenya Gazette,
dissolve the Board if the Authority performs its functions in a manner Dissolution of
the Authority
inconsistent with the provisions of this Act.

FIRST SCHEDULE

PROVISIONS RELATING TO THE NOMINATION OF DIRECTORS

OF THE AUTHORITY

Appointment of Nominated members:

The nomination of the appointed members of the Board under section 8(1)
shall be in accordance with the prescribed procedures and requirements from
the following organizations -
(a) one shall be a member nominated by the Architectural Association of
Kenya;

12
(b) one shall be a member nominated by the Institution of Engineers of Kenya;
(c) one shall be a member nominated by the Law Society of Kenya;
(d) the Permanent Secretary of Public Works;
(e) the Permanent Secretary of Roads;
(f) the Permanent Secretary of Local Government;
(g) two other persons representing special interest groups to be nominated by
the Minister;

Provided that any Permanent Secretary aforesaid may deputize in writing any
other person not below the level of Deputy Secretary to be a director in his
place.

SECOND SCHEDULE

PROVISIONS AS TO THE CONDUCT OF BUSINESS AND AFFAIRS

OF THE AUTHORITY

1. (1) In order to achieve its objectives, the Board may establish such
Committees and
committees as it may deem appropriate to perform such functions and co-opted
responsibilities as it shall determine, but all findings of such committees shall advisors
be presented to the Board for its consideration and determination.
(2) The Board shall appoint the chairman of any committee established by it
from amongst its own members.
(3) The Board may at its discretion, at any time and for any length of time co-
opt any person to attend any of its deliberations, but such person shall not be
entitled to vote on any matter at any meeting of the Board.

2. (1) The appointment of a member, other than an ex-officio member shall be

Vacation of
terminated by the Minister, on any of the following grounds:- office by Board
(a) upon the expiration of the period of his appointment; members
(b) upon his death;
(c) if he is adjudged bankrupt;
(d) if he is sentenced for any offence against any written law to a term of
imprisonment of, or exceeding , six months otherwise than as an alternative to,
or in default of, the payment of a fine;
(e) if he is convicted of an offence involving fraud and dishonesty.
(f) if he is absent, without the permission of the Board, from three successive
meetings of the Board of which he has received notice;
(g) upon notice in writing of his intention to resign his office;
(h) if in the opinion of the Board, he becomes, by reason of mental or physical
infirmity, incapable of performing his duties as a member of the Board; or
(i) upon the commission of an offence under this Act.

3. (1) The Board shall meet at its registered office or such place or places in Meetings of the
Kenya with prior written approval of the State Corporations Advisory Board
Committee (SCAC) and at such time or times as the Chairman may determine

13
and shall meet quarterly.
(2) An ordinary meeting of the Board shall be convened by at least fourteen
days’ written notice to the members by the Executive Director to the Authority.
(3) The Chairman, may, in his discretion, and shall at the written request of at
least half of the members of the Board and within seven days of such request,
cause an extraordinary meeting of the Board to be summoned at such place and
time as he may appoint.
(4) The quorum of any meeting of the Board shall be five of the membership of
the Board.
(5) Where there is no quorum at a meeting of the Board, or for the
continuation of a meeting of the Board by reason of the exclusion of a member
on account of the provisions governing disclosure of interest, the members
present shall postpone consideration of the matter in question until there is a
quorum.
(6) The Board may make standing orders for the regulation of its
proceedings and business or the proceedings and business of any of its
committees and shall inform the Minister in writing of all such standing orders.
(7) The minutes of each meeting of the Board or of a committee of the Board
shall be kept by the Executive Director to the Board and shall be confirmed by
the Board or the committee at the succeeding ordinary meeting and be duly
signed by the chairman or the person presiding.
(8){a} The Chairman presides over all meetings of the Board and in his
absence, the members of the Board forming a quorum shall appoint one of
their number to chair the meeting.
{b} A person appointed to chair a meeting of the Board under this subsection
shall at that meeting exercise all the powers of the chairman.
(9) At any meeting of the Board where decision on any matter has to be made
by voting, such decision shall by made by majority vote of members present
and when voting, the chairman or the person presiding shall have, in the event
of a tie, a casting vote.

4. If a member of the Board acquires any interest direct or Disclosure of

indirect in any contract, proposed contract or other matter and is present at a interest
meeting of the Authority at which the contract, proposed contract or other
matter is the subject of consideration by the Authority, the member shall at the
meeting disclose the fact to the Authority and shall take no part in the
consideration or discussion of, or vote on any question with respect to the
contract or other matter.

5. (1) The common seal of the Authority shall be authenticated by the signature Common Seal of
of the chairman and the Executive Director to the Authority. the Authority
(2) In the absence of the chairman any Board member designated by the
chairman for the purpose may authenticate the seal.

6. (1) The Executive Director shall keep and maintain registers of contractors Registers of
of different types, categories and classes in which the name of every person Contractors

14
entitled to have his name as a registered contractor, shall be entered as soon as
it is practicable after being accepted by the Board for registration, showing
against his name -
(a) the date of entry;
(b) the name and postal address(es);
(c) the registration number;
(d) the class registered in;
(e) the capital and other financial resources;
(f) tools, plants and equipment;
(g) physical address;
(h) the key managerial, professional or technical and other personnel;
(i) directors or partners, or a senior employee, one or more of whom shall be
technically qualified and or experienced in. the relevant works as prescribed by
the Board;
(j) in the case of an individual, the qualifications and or skills and experience
as prescribed by the Authority necessary to enable him to discharge in
satisfactory manner the obligations which he may reasonably be expected or
called upon to undertake as a contractor belonging to the category, type and
class in respect of which registration is being sought;
(k) annual turnover of construction activities;
(l) duration of registration;
(m) type of registration; and
(n) any other particulars which the Board may, from time to time, direct.
(2) Registers shall be kept for the following types of contractors namely;
(a) general building contractors;
(b) civil engineering contractors;
(c) electrical contractors;
(d) plumbing and drainage contractors;
(e) ventilation and air conditioning contractors;
(f) labour contract contractors;
(g) fire engineering contractors;
(h) structural steel contractors;
(i) any other contractors in the construction industry not specified above.
(3) Any change in any, of the particulars registered under subsection (1), shall
be entered in the appropriate register by the Executive Director.

7. (1) The Executive Director shall by notice published in the Kenya Gazette, Publication of
as soon as may be practicable after registration publish the names, postal registers and lists
addresses, premises, registration number, type, category and class registered in
and names, and qualifications of partners or directors of the registered
contractor.
(2) Subject to the direction of the Board, the Executive Director may publish
any amendment to or deletion from the register in the Kenya Gazette.
(3) The Executive Director shall by notice published in the Kenya Gazette
twice in a calendar year, as soon as practicable after the first day of January in
each year, publish a list containing the names; postal addresses, premises,

15
registration number, type, category and class registered in, and of all registered
contractors remaining on the registers after the thirty first day of December of
the previous year and 1st day of June of the current year.

8. (1) A publication under the provisions of section 11 of this schedule shall be Publication
prima facie evidence that, any persons name in the register is registered under prima facie
this Act, and the deletion from the register of the name of any person notified evidence of
registration
by that application, shall be prima facie evidence that person is not so
registered.
(2) The registers, lists and all copies or extracts, which have been 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 Executive Director a copy of an extract from the
register for any document on payment of a prescribed fee.

9. (1) Subject to the provisions of this Act, a person shall be eligible on making
Qualification for
an application to the Board in the prescribed manner and on payment to the
registration of
Authority of the prescribed fees, to be registered under this Act as a contractor contractors
if he satisfies the Board -
(a) that Director or Partner or Senior employee has the minimum technical
qualifications and skills prescribed by the Board for the category, type and
class of contractors the, registration of
which is being sought;
(b) that he has the necessary experience as prescribed by the Authority in
works involving construction, erection, installation; alteration or any other
activity which is connected with them;
(c) that his professional and general conduct has been such as, in the opinion of
the Board, makes him a suitable person to be registered under this Act; and
(d) he has the necessary plant and equipment for the registration sought.
(2) The Authority may refuse to register a person as a contractor if in its
opinion -
(a) that person does not meet the conditions stated in subsection (1);
(b) that person is a member of a consulting firm providing architectural,
quantity surveying or engineering services, provided there is full declaration.
(c) is a person whose employment shall result in conflict of interest with his
employer by being a contractor.
(3) Upon registration, the person shall be issued with a certificate of
registration indicating the registration number, type, category, class, date of
registration and duration of registration.
(4) The certificate issued under subsection (3), shall be the property of the
Authority and shall be withdrawn and returned to the Authority upon
suspension or cancellation of registration.

10. (1) (a) where the firm has been incorporated outside Kenya; Temporary
(b) the firm intends to be present in Kenya in the capacity of a contractor for registration

16
the express purpose of carrying out a specific contract for which the firm has
been contracted, the sum of which is not less than the sum prescribed by the
Board for the category, type and class of contractors of which registration is
being sought;
(c) the firm has a certificate of compliance from the Registrar of Companies
showing that the firm is or immediately prior to entering Kenya was, trading as
a contractor in the capacity which satisfies the Authority with its fitness to
serve the public as a qualified contractor;
(d) the firm has lodged an affidavit with the Authority to the effect that, once
the contracted works are completed and the period of defects liability or
maintenance has elapsed then it shall wind up business and not engage itself in
contracting business, the Board may if it finds neccessary, direct that the firm
be registered under this section for the duration of the contracted works.
(2) An application for registration under this section shall be in the prescribed
form, accompanied by the prescribed fee. The Board may require an applicant
to appear before it for the purposes of producing 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 duration or the period of contracted work which is directed by the
Board in subsection (1) and on the expiry of the period of the contracted works
that firm will cease to have been so registered, and shall return the registration
certificate to the Authority.
(4) A firm under this section shall during the duration or the period of the
contracted works as is directed by the Authority under subsection (1), and in
relation to things done or omitted to be done in the course of the contracted
work, be treated as being duly registered under this Act as a bona vide
contractor.
(5) For the purpose of this section, the word “firm” includes a person or body
of persons whether corporate or unincorporate.

11. (1) The Board may at any time direct that the name of a registered Power to cancel
contractor be deleted from the relevant register where that person has - registration
(a) failed within a period of six months from the date of an inquiry sent by the
Executive Director by a registered letter to the address appearing in the register
against his name to notify the Executive Director of his current address;
(b) requested that his name be deleted from the register, in which case that
person may be required to satisfy the Authority by swearing an affidavit
certified by commissioner of oaths and lodged with the Executive Director but
no criminal proceedings under section 17 or section 18 of this schedule are
being, or are likely to be taken against him;
(c) failed to pay annual subscription fees for two consecutive years;
(d) failed to meet the current registration criteria of the Authority;
(e) failed to discharge his duties, responsibilities and obligations as a
contractor;
(f) been found by the Authority to be guilty of any contravention of this Act or

17
subsidiary legislation made under this Act or of any such misconduct as is
referred to in section 17 of this schedule .
(2) The Executive Director shall strike the name of every deleted contractor off
the register.
(3) Except in the circumstances specified in paragraph (a) of subsection (1) and
in subsection (2), the deletion from the register of the name of any contractor
shall be notified by the Executive Director 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) Subject to the provisions of section 13 of this schedule, a contractor whose
name has been deleted from the register under this section, shall cease from the
date of the deletion, to be registered for the purpose of this Act; and shall be
obliged to surrender to the Authority immediately the certificate of registration
for cancellation.
(5) A sole proprietor, partners, members of a society or directors of a company
shall not be allowed to register or acquire a new contracting sole
proprietorship, partnership, society or company after having been deleted as
registered contractors.

12. (1) Where the name of any contractor has been deleted from the register Restoration to
under section 15 of this schedule, the name of that contractor shall not again be the register
entered in the register except on the direction of the Board.
(2) Where the name of any contractor has been deleted from the register or the
effect of the registration of any contractor has been suspended in terms of
paragraph (b) of section 13 of this schedule, 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 from the register be confirmed; or
(b) the name of that contractor be restored to the register; or
(c) the suspension of the effect of the registration of that contractor be lifted.
(3) A direction given by the Board under subsection (2) may include provision
for the date upon which a restoration to the register or the termination or
suspension of the effect of registration shall take effect and for the payment by
the contractor concerned of the fee, as a penalty, not exceeding the fee payable
on an application for registration, as the Board may determine.

13. (1) The Board shall have power to suspend any registered contractor if
Powers to
such registered contractor including its principals or partnership – suspend
(a) is convicted of any offence under this Act; registration etc.
(b) is found to have been guilty of any act or omission amounting to improper,
disgraceful or gross professional misconduct, after due inquiry held by the
Board;
(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 Authority may -

18
(a) caution or censure a registered contractor;
(b) direct that during the period as the Board may specify, the registration of
his name shall not have effect;
(c) direct that his name be deleted from the Register;
(d) take legal action against the offender.

14. (1) Upon any inquiry held by the Authority under this section, the Proceedings at an
contractor whose conduct is being inquired into shall be entitled to appear and inquiry
be heard.
(2) For the purposes of proceedings at any inquiry held by it, the Board shall
have power to -
(a) summon persons to attend and give evidence; and
(b) order the production of documents.
(3) All summonses and orders issued under the hand of the Chairman of the
Authority shall be deemed to be issued by the Authority.
(4) The Chairman, of the Board shall record or cause to be recorded a summary
of any oral or written evidence given at an inquiry held by the Authority.
(5) Subject to the provisions of this section and of any regulations made under
section 29 of this schedule, the Authority shall have powers to regulate its own
procedures at an inquiry held by it.

15. (1) Any contractor who, having been served with a summons or an order
Disobedience to
issued under the provisions of section 23 or omits without sufficient cause -
summons and
(a) to answer fully and satisfactorily to the best of his knowledge and belief all refusal to give
questions put to him by or with the concurrence of the Board; evidence
(b) to produce any documents in his possession or under his control which are
specified in the order;
commits an offence and upon conviction is liable to a fine of not less than ten
thousand shillings or to imprisonment for a term not exceeding one year but
not less than six months or to both that fine and imprisonment,
(2) Any person giving evidence before the Authority 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.

16. (1) Any contractor aggrieved by a decision of the Board subject to section Appeals against
18 to– decisions of the
(a) refuse to register his name; Board
(b) delete his name to a register; or
(c) suspend the effect of registration of his name;
may appeal to the Appeals Board against the decision of the Board and the
Appeals Board may give such directions in the matter as it thinks proper.
(2) The Authority 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 Authority shall be deemed to be a party thereto,
whether or not it shall appear at the hearing of the appeal.
(3) Any person aggrieved by the decision of the Appeals Board may appeal to

19
the High Court.
Appeals Board
17. (1) The Appeals Board shall Consist of:-
(a) a Chairman to be appointed by the Authority;
Two members appointed by the Authority who are professionals
in the construction industry with not less than ten years experience.
(2) the Appeals Board will be an ad-hoc Board whose tenure shall be three
years from the date of appointment.
(3) the expenses, allowances, etc of the Appeals Board shall be met by the
Authority.

18. (1) The Minister may, after consultation with the Attorney-General, make
rules regulating appeals to the Appeals Board and providing for the taking of
further evidence, the fees to be paid, the procedure to be followed and the
manner of notifying the Board of Appeal.
(2) Subject to any rules made under subsection (1), the provisions of section 18
and section 19 of this schedule shall apply, mutatis mutandis, in relation to
appeals under section 20 of this schedule and to persons summoned to give
evidence before the Appeals Board.

19. Every contractor whose name has been entered in the register shall, so long
as his name remains in the register, be entitled to adopt and use the style and
title “Registered Contractor” or such contraction thereof as the Board may
approve and to offer his services to the public for valuable consideration or
reward or by way of trade, as a registered contractor.

20. (1) Any person who or any firm which not - Rules regulating
(a) being a registered contractor falsely pretends to be such; or proceedings
before the
(b) being a registered contractor, holds himself out other than for the purpose Appeals
of applying for registration, whether directly or by implication to be a qualified Authority
and experienced contractor; or
(c) being a registered contractor trades or carries on business as contractor in
Kenya;
commits an offence and upon conviction is liable to a fine not exceeding one
percent of the contract sum of an executed contract or contract in hand or two
hundred thousand Kenya shillings whichever is lesser or to imprisonment for a
term of not less than three years or to both the fine and the imprisonment.
(2) Any person who trades under the name, title or style containing any words
Use of
or phrases implying “Registered Contractor” unless, he is registered under this description
Act as contractor, commits an offence and upon conviction is liable to a fine “Registered” and
not exceeding one percent of the contract sum of an executed contract or effect of
contract in hand or two hundred thousand Kenya shillings whichever is lesser registration
or to imprisonment for a term of not less than three years or to both the fine
and the imprisonment.

20
21. (1) No body or persons, whether corporate or unincorporated, shall carry Restrictions on
on the business of contractors unless at least one of the partners or directors or carrying on
business as
a senior employee has as prescribed by the Authority the required technical registered
qualifications, and or skills and experience necessary to enable him to contractor
discharge in satisfactory manner the obligations which he or the firm may
reasonably be expected or called upon to undertake as a contractor belonging
to the category, type and class in which he or the firm intends to carry on the
business of contractors; and that body of persons is duly registered.
(2) Where the director who is also a shareholder or partner who has the
required technical qualifications, skills and experience, of a body of persons
whether corporate or unincorporate, carrying on business as a contractor dies,
such body or persons may, notwithstanding the provisions of subsection (1) be
allowed to complete the project or contracts in hand only, as if such legal
representatives were registered contractors.
(3) Nothing in this Act shall be construed as entitling any body of persons,
whether corporate or unincorporated to be registered as or as empowering the
Board to register any body of persons as registered contractors.
(4) A body of persons, whether corporate or unincorporate, after fulfilling the
Bodies of
Conditions for registration, may be registered as contractors and if so persons
registered, may lawfully carry on business as registered contractors and, in the operating as
case of such body of persons so registered or applying to be so registered, contractors
references in this Act to the required technical qualification, experience, skill
or conduct as prescribed by the Authority of any contractor or applicant shall
be construed as references in this Act to the required technical qualification,
experience, skill or conduct of persons who are directors or partners, as the
case may be or are employed by, such body of persons and who are
participating or, in the case of an application, shall participate, in the activities
of the body of persons in .carrying out its business as registered contractors.
(5) The Authority may refuse to register any body of persons as contractors or
direct the deletion from the register of the name of any body of persons
registered as such if it is satisfied that none of the directors or partners, as the
case may be, is a person who, if he had applied to be registered as a contractor
in his individual capacity would not have been accepted for registration.
(6) Any body or persons who carries on business as contractors in
contravention of any of the provisions of this section commits an offence and
upon conviction is liable to a fine not exceeding one percent of the contract
sum of an executed contract or contract in hand or two hundred thousand
Kenya shillings whichever is lesser or to imprisonment for a term of not less
than three years or to both the fine and the imprisonment.

22. For the purposes of this Act a person shall be deemed to be carrying on Definitions of
business or trading as a contractor if he, for valuable consideration or reward, “carrying on
offers or renders his services as contractor, to another person, whether such business” or
trading as
services are offered or rendered under a labour contract, contract of service, a “contractor”
contract for services or otherwise.

21
22