1. Status & Challenges in the Construction Industry
WORLD ACCREDITATION DAY
Presentation on:
Status & Challenges in the
Construction Industry
Presentation By:
Qs David Mathu – Manager, Research & Business Development

2. Overview of the Construction Industry Opportunities in the Industry
CONTENT
Introduction
Overview of the Construction Industry
Opportunities in the Industry
Registration Status of Contractors
Milestones of NCA
Challenges facing the construction industry

3. INTRODUCTION
NCA is a State Corporation with the broad mandate of overseeing the Construction Industry & coordinating its development
Core functions of NCA include, among others:
Promote & stimulate expansion of industry
Undertaking research in the industry
Provision of consultancy and advisory services
Promote quality assurance exercises in the industry
Training of key industry players
Accreditation & registration of contractors and construction workers

4. Overview of Kenya’s Construction Industry
The construction industry in Kenya is at a boom granting it a competitive advantage among its regional counterparts
The industry is a key contributor to (GDP) and an attested arterial income earner for over 1 million Kenyans
Realization of vision 2030 heavily relies on robust industry development and resilient competitive construction industry
Responsibility of bettering the industry rests upon coordination and regulation by industry regulators; county governments, and Government agencies, and with NCA being key
Formed through Act 41 of 2011, NCA has grown to regulate the construction sector in 5 classes of works i.e.
Building Works Electrical Works Mechanical Works
Water Works Road Works

5. DIVERSITY OF THE CONSTRUCTION INDUSTRY
Lake Turkana wind project
Standard gauge Railway
Lamu port and New Transport
Corridor to Sudan & Ethiopia

6. Tatu city
Konza city
JKIA Expansion &
Modernization

7. UAP Building Upperhill
Britam Tower
Upperhill
KCB Building
Upperhill
UAP Building Upperhill

8. Opportunities in the Kenyan CI
Deficit and Demand for Affordable Income Housing
The huge deficit in infrastructure including rail, roads and ports present a significant case for continuing growth in the building and construction sector.
NHC reported a 200,000 Housing Units Per Year.There is also a need to provide more affordable housing for low and middle income households
The Gap Of Green Design & Sustainable Building Initiatives
The need to attain international standards of sustainability rating will pose a challenge in the real estate market as new buildings will be required to meet a standard sustainability ranking
This will create a gap that needs to be filled by green building initiatives and demand for more professionals to embrace leadership in sustainability design
Proactive town-planning approach
Urbanization should be anticipated rather than reacted to and necessary infrastructure to accommodate inward migration should be put in place before it actually arrives
Proactive planning plays an important role in managing the growth of cities and townships by allocating land for future uses and controlling the pace and type of development The aim of town planning is to manage change to achieve a preferred future
Technological Advances
Technological advances are likely to make eco-efficient building more practical
New technologies in the market call for better technical know how and preparedness to adapt to changes in techniques of building

9. Registration Status of Contractors
Category
NCA 1
NCA 2
NCA 3
NCA 4
NCA 5
NCA 6
NCA 7
NCA 8
Total
Number
923
786
1,190
4,327
4,494
8,486
13,387
14,456
48,049

10. MILESTONES OF NCA
Successfully organized 2 Annual Construction Research Conferences & Exhibition [ACORCE] with another upcoming one in Nov. 2017
Organizing a Research journal to publish researches
We have formed partnership with universities & research institutions
Currently developing the National Construction Institute
Working on an invoice discounting model for contractors
Online portal for registration of contractors [CB Initiative]
Registration of over 49,000 contractors and 267,000 skilled construction workers and construction site supervisors
Expansion of NCA offices to 16No

11. CHALLENGES FACING THE CONSTRUCTION INDUSTRY
Cost of Construction material
Cost of construction is relatively high as most of the building materials are imported and overland transport costs are relatively high
Capital; financing
The industry needs adequate financing in order to thrive
High interest rates also make it very hard for contractors to access capital
Corruption
The industry is dominated by corrupt procurement and tendering processes
Contractors have resulted to bribing Government and private officers to win construction projects and sometimes under-price to win tenders

12. OTHER MAJOR CHALLENGES
Quality assurance and Skills gap
Existing skill gap leads to poor workmanship, faulty structures and building failure experienced in the recent past calling for measures to regulate the construction industry, build capacity and ensure quality control
Occupational health and safety
Construction industry is considered risky with frequent, high accident rate and ill-health problems.
Fatal accidents are rampant in construction sites, workers are exposed to hazards of occupational diseases and injuries.

13. Thank You