24/03/2015

DealingwithConstructionPermitsinKenyaDoingBusinessWorldBankGroup
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DealingwithConstructionPermitsin

Kenya

EXPLOREECONOMYDATA
STANDARDIZEDWAREHOUSE

Belowisadetailedsummaryoftheprocedures,timeandcoststobuildawarehouseinKenya.This
includesobtainingnecessarylicensesandpermits,completingrequirednotificationsandinspectionsand
obtainingutilityconnections.

Estimatedcostofconstruction:
KES4,251,548

ThisinformationwascollectedaspartoftheDoingBusinessproject,whichmeasuresandcompares
regulationsrelevanttothelifecycleofasmalltomediumsizeddomesticbusinessin189economies.
ThemostrecentroundofdatacollectionwascompletedinJune2014.Readthemethodology.

MoreInformation

TheindicatorsetondealingwithconstructionpermitswillbeexpandedinDoingBusiness2016to
includeanindexthatwillmeasuregoodpracticesinconstructionregulationandassessthequality
controlandsafetymechanismsinplaceforaneconomysconstructionpermittingsystem,aswellasthe
qualityofthebuildingregulations.Thisnewindexwillbecomeacomponentindicatoroftherankingon
dealingwithconstructionpermits.Thenewdatawerecollectedfor170economiesin2014andis
availableundertheMethodologyExpansiontab,below.Thedataarepreliminaryanddonothave
anyimpactontheEaseofDoingBusiness2015rankings.Thisdatamaydifferfromwhatwillbe
publishedinDoingBusiness2016.

City:Nairobi

Learnmoreaboutthiseconomy
Readthetopicmethodology
Viewtherankings

CompareKenyato188othereconomies.
ProceduresList

No.
1

MethodologyExpansion

Procedure

Submitarchitecturalplanforapprovalandobtainprovisionalbuildingpermit
Agency:NairobiCityCouncyDevelopmentControlSection

Timeto
Complete

Associated
Costs

30days

KES
335,439

10days

nocharge

BuildCowouldapproachtheCityDevelopmentDepartmentofCityCouncilofNairobi(CCN)togetitsarchitecturalplans
approvedfirst.Beforesubmittingtheapplication,BuildComustpaytherelevantfees.Oncethepaymentismade,BuildCo
submitsthereceipttotheCityDevelopmentDepartment.Theapplicationmustcontainthearchitecturaldrawingsandplans,
landtitle,copyofmainarchitectslicense.
Theapplicationthengetsforwardedtovariousdepartments:PhysicalPlanning,RoadDepartment,PublicHealth,Fire
Department,WaterAuthority,andElectricityAuthority.Eachdepartmenttakesatleastoneweektocleartherespectivesection
oftheplansandgrantsseparatepermitsfortheplumbing,sewerage,andelectricalactivitiesthatBuildCowillbeinvolvedin
duringtheconstructionofthewarehouse.
Thereafter,theapplicationisforwardedforapprovaltotheTechnicalCommitteethatconvenestwiceaweekandissuesthe
approvals.AsaresultoftheapprovalofarchitecturaldrawingsBuildCowillreceivethebuildingpermit.Thebuildingpermitis
grantedonlyprovisionally,untilthestructuralsegmentisapproved.
Afterthebuildingpermitisobtained,BuildComustsubmititsstructuralprojectseparately.Since2006,CCNhasbeenreforming
underRapidResultsInitiative(RRI),tryingtoreducethenumberofdaysandeliminatethebottlenecks.Since2008the
architecturalprojectapprovalisdonebytheTechnicalCommitteethatconvenestwiceaweekandissuestheapprovals.
Previously,theapprovingbodywastheCityCouncilitself.However,duetoitsbusyscheduleandbacklog,itwasdecidedto
transfertheresponsibilityfromtheCityCounciltotheTechnicalCommittee.Becauseofvariousreformsittakesonaverage30
daystoobtainthispartoftheapproval,asopposedto50daysbefore.However,approvaltimecanvarydependingonthe
diligenceofthearchitect.
OnJune27,2013theNairobiCityCountyadoptedthenewFinancialAct2013whichbecameeffectiveasofOctober1,2013.
TheActmodifiedthemethodofassessingthebuildingpermitfeesandconsolidatedseveralcostsintoone.Thebuildingpermit
feeisnowbasedonthesizeofthebuilding.TheJointBuildingCouncilRatesprovidetheestimatedcostpersquaremeter
whichvariesdependingonthetypeofbuilding(e.g.officeblock,residential,industrialcomplex,etc.).FortheDoingBusiness
casestudy,theestimatedcostisKES21,000/sq.m.Thefeesareasfollows:
(i)Buildingplanapprovalfee:1.1%oftheestimatedcostofconstruction
(ii)Constructionsignboardfee:KES25,000
(iii)Applicationfee:KES5,000
(iv)Inspectionofbuildingfile:KES5,000
2

Submitandobtainstructuralplanapprovalandfinalbuildingpermit
Agency:NairobiCityCountyDevelopmentControlSection

http://www.doingbusiness.org/data/exploreeconomies/kenya/dealingwithconstructionpermits/

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24/03/2015

DealingwithConstructionPermitsinKenyaDoingBusinessWorldBankGroup
Oncethearchitecturalplansanddrawingsareapprovedandcommentsandchangesaremade,BuildComustincorporate
themintothestructuralplansandresubmittheapplicationtoCCNforapproval.Thisisdoneascommonpractice,as
submittingbothplanstogetherisimpossible.Oneotherreasonwhythesetwostepshappenseparatelyisbecausethe
architecturaldrawingsandplansarecheckedbytheStructuralDepartmentatthestagewhenthestructuralplansare
approved.Constructionworkbeginsonlyafterthisapproval.
DuetotheRRIprogramandtheinternalprocessofsimplificationintheCCN,itnowtakes10daystoobtainthestructural
approvalcomparedtoprevious25days.
BuildComusthavethefollowingitemsapproved:projectplans,architecturaldrawings,locationsurveyofpropertydocuments
andothers.
3

Obtainaprojectreportfromanenvironmentalexpert
Agency:PrivateExpert

5days

KES
50,000

30days

KES2,126

5days

nocharge

AlicensedenvironmentalexpertmustbehiredtoprepareaprojectreporttobesubmittedtoNEMA.
4

Obtainapprovaloftheenvironmentalimpactstudy
Agency:NationalEnvironmentManagementAuthority(NEMA)
FollowingtheenactmentofnewEnvironmentalManagementandCoordinationActonFebruary27,2009,companiesnow
havetoobtainapprovalofprojectsfromtheNationalEnvironmentManagementAuthority.Projectsofallriskcategoriesare
subjecttoapprovalandanenvironmentalimpactassessment(EIA),includingtheBuildCowarehouse.Ittakes30dayson
average.Thecostissetat0.05%ofwarehousevalue(0.05%*KES32,500,000.00).PriortoFebruary11,2009,thefeerate
was0.1%ofwarehousevalue.
TheregulationregardingenvironmentalimpactassessmentapprovalforKenyahasbeeninplacesince1999.However,in
recentyearsNEMAstartedenforcingtherulesmorevigorously.NEMAconductsperiodicinspectionsduringtheconstruction.If
newprojectsatthemomentofinspectiondonothaveanenvironmentalimpactassessmenttheymayordertheprojectbe
closedanderectedobjectsdemolished.Therefore,constructioncompaniesarenowobtainingtheenvironmentalapproval
beforethebuildingiscompleted.However,thelegislationisnotclearonwhatcategoriesofbuildingthisregulationappliesto.

RequestandreceivefinalinspectionbytheMunicipalAuthorityafterconstruction
Agency:NairobiCityCountyDevelopmentControlSection
Oncetheconstructioniscompletedalongsidestatutoryinspections,BuildCoappliesforanoccupancycertificate.The
occupancycertificateisgivenwhentheCityCouncildeemsthebuildingisincompliancewiththeapprovedarchitectural
drawings.
TheapplicationisthenforwardedtotheAssistantDirectorEnforcementsothataninspectorisassignedforthefinalinspection
oftheconstruction.Normallyitshouldbeacombinedvisitfromseveralotherdepartments.

Obtainoccupancycertificate
Agency:NairobiCityCountyDevelopmentControlSection

14days

nocharge

Applyforwaterandsewerageconnection
Agency:NairobiCityWaterandSewerageCompany(NairobiWater)

1day

KES1,100

Paywaterandsewerageinstallationcostsandobtainconnection
Agency:NairobiCityWaterandSewerageCompany(NairobiWater)

30days

KES6,000

BuildCoisrequiredtosubmitan"applicationforwaterandseweragesupplyform"obtainedfromtheNairobiCityWaterand
SewerageCompany.Afterwards,BuildCoisrequiredtopayKES1,100.00forasurveyandestimateoffeesandattachthe
receiptofpaymenttotheapplicationform.BuildComustalsoattachthecompany'scertificateofregistrationanditsPINnumber.
TheNairobiWaterCompanymayapprovetheapplicationafterallthesedocumentshavebeensubmitted.
Afterapproval,BuildComustpayKES6,000.00.BuildCoisresponsibleforpaymentofallwater,meterrent,sewer,
conservancy,andrefusecollectioncharges.Theprocessusuallytakesonemonth.

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