Dealing with Construction Permits in
Kenya
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
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Building a warehouse
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Estimated Warehouse Value:
KES 32,500,000
- City: Nairobi
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Submit architectural plan for approval and obtain provisional building permit
BuildCo would approach the City Development Department, of City Council of Nairobi (CCN) to get its architectural plans approved first. Before submitting the application, BuildCo needs to make payment of relevant fees. Once payment is made, BuildCo submits the receipt to the City Development Department. The application must contain the architectural drawings and plans, land title, copy of main architect’s license. The application then gets forwarded to various departments: Physical Planning, Road Department, Public Health, Fire Department, Water Authority, and Electricity Authority. Each department takes at least one week to clear the respective section of the plans, and grants separate permits for the plumbing, sewerage, and electrical activities that BuildCo will be involved in during the construction of the warehouse. Thereafter, the application is forwarded for approval to Technical Committee that convenes twice a week and issues the approvals. As a result of the approval of architectural drawings BuildCo will receive the building permit. Building permit is granted only provisionally, until the structural segment is approved.
After that the building permit is obtained BuildCo needs to submit its structural project separately.
Since 2006, CCN has been reforming under Rapid Results Initiative (RRI), trying to reduce the number of days and eliminate the bottlenecks. Since 2008 the architectural project approvals is done by Technical Committee that convenes twice a week and issues the approvals. Previously, the approving body was City Council itself. However, due to its busy schedule and backlog, it was decided to transfer the responsibility from the City Council to the Technical Committee. Because of various reforms it takes on average 30 days to obtain this part of approval as opposed to 50 days before. However, approval time varies because it depends on the diligence of the architect.
As of November 2008, occupancy certificate fee must be paid at this stage.
According to updated fee schedule of City Council of Nairobi, as of 31 October 2009 in the Kenya Gazette, the following changes are introduced:
- design inspection fee first 930 m2 is KES 12,850 + for every 93m2 above original 930 m2 is KES 1,500 x 4 = KES 6,000. Total KES 18,850 for 1300.6 sqm
- construction sign board fee KES 15,000.
- application fee –KES 2,000.
- infrastructure development levy fee - which is 0,5% of estimated development cost of building. According to CCN methodology current building cost for warehouses in Central Region (Nairobi) is KES 21,000 sq.m. (excluding VAT). Total is KES 27312,600x0.05%=KES 13,656.3
- occupancy fee for warehouse -930 sqm - KES14,000 and for additional 93 sqm its KES 200. Total KES 14,796.9
Total: KES 64,303.2
Agency: Municipal Authority (City Development Department)
|
30 days
|
KES 64,303
|
| 2 |
Submit and obtain structural plan approval and final building permit
Once the architectural plans and drawings are approved and comments and changes were made, BuildCo has to incorporate them into the structural plans and re-submit the application to CCN for approval. This is done as common practice for submitting both plans together is impossible. One other reason why these two steps happen separately is because the architectural drawings and plans are checked by Structural Department at stage when structural plans are approved. Construction works begin only after this approval.
Since beginning this year due to RRI programme and internal process of simplification in the CCN it takes now 10 days to obtain the structural approval compared to previous 25 days.
The company must have the following items approved: project plans, architectural drawings, location survey of property documents and others.
According to updated fee schedule, as of October 31, 2008, the structural plan approval fee is calculated as follows: 930 sq.m.- KES 14,000, and for each additional 93 sq.m.- KES 200. Total: KES 7,475.5
Agency: Municipal Authority
|
10 days
|
KES 7,476
|
| 3 |
Obtain approval from National Environmental Authority
Following the enactment of new Environmental Management and Co-ordination Act on 27 February 2009, companies now have to obtain approval of project from National Environment Management Authority. Projects of all risk categories are subject to approval and environmental impact assessment (EIA), including the BuildCo warehouse. It would take 30 days. The cost is set at 0.05% of warehouse value (KES 32,500,000). Prior to 11 February 2009, the fee rate was 0.1% of warehouse value.
The regulation regarding environmental impact assessment approval for Kenya has been in place since 1999. However, in recent years NEMA started enforcing the rules more vigorously. NEMA conducts periodic inspections during the construction. If new projects at the moment of inspection do not have an environmental impact assessment they may order the project be closed and erected objects demolished. Therefore, construction companies are now obtaining the environmental approval before the building is completed. Although, the legislation is not clear on what categories of building this regulation would apply.
Agency: NEMA
|
30 days
|
KES 16,250
|
| 4 |
Request and receive on-site inspection by the municipal authority after construction
BuildCo must inform the municipality that the building has been completed in order to start the inspections.
Agency: Municipal Authority
|
5 days
|
KES 100
|
| 5 |
Obtain occupancy certificate
Once the construction is completed and inspected, BuildCo submits an application for an occupancy certificate. The occupancy certificate is given when the City Council deems the building is in compliance with the approved architectural drawings.
Agency: City Council and Municipal Authority
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14 days
|
no charge
|
| 6 |
Apply for water and sewerage connection
Agency: Nairobi City Water and Sewerage Company (NairobiWater)
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1 day
|
KES 1,100
|
| 7 |
Pay water and sewerage installation costs and obtain connection
The applicant is required to submit an "application for water and sewerage supply form" obtained from the Nairobi City Water and Sewerage Company. Thereafter, the applicant is required to pay KES 1,100 for a survey and estimates fees and attach the receipt of payment to the application form. The applicant is also required to attach the company's certificate of registration and its PIN number. The Nairobi Water Company may approve the application after all these documents have been submitted. After approval, applicant is required to pay KES 6,000. The applicant is responsible for payment of all water, meter rent, sewer, conservancy, and refuse collection charges. The process usually takes a month.
Agency: Nairobi City Water and Sewerage Company (NairobiWater)
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30 days
|
KES 6,000
|
| 8 |
Apply and pay for telephone connection
Telkom Kenya and Bell Western Telecommunication Ltd are the lauthorised fixed telophone operatiors. The latter is in charge of rural telecommunication
operations.
Agency: Telkom Kenya
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5 days
|
KES 2,300
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