National Construction Authority Act

This Act may be cited as the National Construction Authority Act.

Defines 'building' to include any building, erection, edifice, structure, wall, fence or chimney, whether constructed wholly or partly above or below ground level.

The members of the Board are to be paid remuneration, fees or allowances, which the Cabinet Secretary, in consultation with the Salaries and Remuneration Commission, may determine.

The Board may, by resolution, delegate any of its powers, functions or duties to committees or to any member, officer, employee or agent of the Board.

There shall be an Executive Director appointed by the Board (competitively recruited); the Executive Director serves as CEO responsible to the Board for day-to-day management and is Secretary to the Board and Registrar of contractors.

The Board may appoint officers necessary for carrying out the Authority's functions, on terms and conditions the Board determines.

The Board may co-opt experts and consultants, establish Committees, and (subject to the Act) delegate powers to those Committees to assist in performing its functions.

Creates the National Construction Authority (an Authority) and lists corporate capacities including suing and being sued; acquiring, holding or disposing of movable and immovable property; borrowing and lending money; and performing other lawful acts for carrying out the Act.

The Authority's headquarters is in Nairobi; the Authority may establish other offices anywhere in Kenya as it considers necessary.

Section 5 lists the functions of the Authority, assigning it powers to oversee and coordinate the construction industry and to promote, regulate, accredit, enforce, research, advise, and support the industry.

The Authority has the power to award certificates of proficiency to contractors, skilled construction workers and construction site supervisors.

Section 7 sets out the Board membership: the Cabinet Secretary appoints a chairperson, seven member representatives from organisations in the First Schedule (from three nominees each), and two members to represent special interest groups; several Principal Secretaries are ex officio members; the Cabinet Secretary must consider gender equity and regional balance; the Cabinet Secretary may amend the First Schedule by Gazette notice; certain officers may be designated to represent some ex officio members; non-ex officio members serve three-year terms and may be re-appointed once.

A Section resigns from office by giving a written notice addressed to the Cabinet Secretary.

The Board must have its conduct and regulation of business and affairs follow the Second Schedule, and the Board may regulate its own procedure.

A person must not operate as a contractor unless registered by the Board; firms are eligible if at least one partner or director has prescribed technical qualifications; contravention is an offence with specified fines or imprisonment.

Section defines who counts as a "Contractor", requires the Board to register eligible contractors, and allows the Cabinet Secretary to amend the Third Schedule by Gazette notice.

Persons or firms may apply to the Board to register as contractors if they meet Board-prescribed qualifications, experience, conduct and equipment requirements; the Board may refuse registration for specified conflicts and must notify refusals in writing within fourteen days; registered persons receive certificates which remain Authority property and may be withdrawn.

Foreign firms may be registered temporarily to carry out specific contracted works; the Board can require applicants to appear and produce documentary evidence; registered firms are entitled to undertake work only for the Board‑prescribed period and must return the registration certificate when that period expires.

The Registrar must keep and maintain registers of registered contractors and enter each contractor's name promptly after Board approval; the Registrar must also keep separate registers by class of works and record any changes to the listed particulars.

The Registrar must publish in the Gazette the names and particulars of all persons registered by the Board after registration, and must publish in the Gazette after 1 January and 1 June each year the names and particulars of contractors who remain on the register.

Section 21(3) permits any person to inspect the register and related documents and to obtain extracts from the register from the Registrar on payment of a prescribed fee; Section 21(1) states that Gazette publication under section 19 is prima facie evidence of registration; Section 21(2) provides that certified registers and extracts shall be accepted in courts and tribunals.

The Board may investigate contractors (on its own initiative or on complaint), summon contractors, require explanations, and take actions including cautioning, directing action, suspending registration or removing names; contractors have the right to be heard and to privileges of High Court witnesses.

The Board may appoint investigating officers; investigating officers can enter construction sites, inspect, question persons and require or seize records, order suspension of works, must identify themselves and produce written authority; failure to willfully comply with an investigating officer's order is an offence with fines or imprisonment.

The Authority must undertake mandatory inspections at any time on sites under constructions in accordance with section 5 (2)(g).

The Board must notify a suspended contractor in writing within 14 days of its decision.

The Registrar must delete a contractor's name from the register for specified failures; the Registrar must notify deletions except in certain cases; a deleted contractor ceases to be registered and must immediately surrender the registration certificate; the Board may require an affidavit when a contractor requests deletion.

The Board controls restoration, confirmation, deletion, suspension and penalties related to contractors' names on the register and may appear as respondent on appeals.

Section 27 establishes the National Construction Appeals Board, sets its membership (including a chairperson nominated by the Attorney-General and a nominee of the Chartered Institute of Arbitrators), allows any aggrieved person to appeal to the Appeals Board, and permits a person aggrieved by the Appeals Board's decision to appeal to the High Court within thirty days of that decision.

The Appeals Board may make rules regarding the filing, hearing and disposal of appeals and other matters before it.

The Ministry must provide the expenses of the Appeals Board.

Parliament may provide such income for the purposes of the Authority.

The Cabinet Secretary may, by notice in the Gazette, impose a construction levy on construction work carried out by persons registered under this Act; the Cabinet Secretary may also make regulations on payment of the levy.

The Authority's financial year is the twelve-month period ending on 30 June each year.

The Board must prepare and approve the Authority's annual revenue and expenditure estimates, at least three months before the financial year starts, submit them to the Cabinet Secretary for approval, and the Authority may not change them except with the Cabinet Secretary's authority.

Establishes the National Construction Fund vested in the Authority; lists fund sources; requires receipts and balances to be retained for fund purposes; allows payment from the Fund for Authority expenditure; permits the Board, with Cabinet Secretary approval, to set an annual ceiling on recurrent expenditure.

The Board must keep proper books and records of the Authority's income, expenditure and assets (including statements of income/expenditure and assets/liabilities); the Authority must ensure annual expenditure and commitments from the Account do not exceed the Fund's annual income plus any carried-forward surplus.

Section 36 allows investment of surplus funds in Government securities or placement/deposit with banks quoted on an approved securities exchange in Kenya and defines "approved securities exchange" under the Capital Markets Act.

Members of the Board and officers, employees or agents of the Authority acting bona fide in execution of Authority functions are not personally liable; however the Authority remains liable to pay compensation or damages for injury caused by its exercise of powers or by failure of works.

The Authority's common seal must be kept in the custody of the Executive Director or another person the Board directs; it must be authenticated by the signatures of the chairperson and the executive director; the Board may order use of the seal.

Documents made on behalf of the Board (except those required by law to be under seal) must be signed by the chairperson of the Board, the Executive Director, or another Board member specifically authorised by the Board.

Anyone who uses the words "National Construction Authority" in advertising for trade, business, calling or profession without the Board's written consent commits an offence and faces up to three years' imprisonment or a fine not exceeding one million shillings or both.

The Cabinet Secretary may dissolve the Board by notice in the Gazette if the Board performs its functions inconsistently with the Act.

The Cabinet Secretary may, in consultation with the Board, make regulations to implement this Act; regulations made under this section must be tabled in Parliament for approval before taking effect.

If this Act conflicts with any other law on the training, registration and regulation of contractors and construction workers, the provisions of this Act prevail.