Skip to content
FundiPay

NCA Compliance Guide for Contractors

NCA compliance is not a certificate you frame and forget. The National Construction Authority registers the contractor and the project, keeps a levy on registered works, and sends inspectors to check that what is on the ground matches what is on paper. For a contractor, the practical test is always the same: can you show, quickly and convincingly, who is working on this site and on what authority? This guide walks through registration, the levy, site records and the payroll documentation that settles most inspections.

Updated October 17, 2026 · Guides

Two registrations: you, and the project

NCA compliance begins before a shovel hits the ground. The contractor must be registered, and the project must be registered once it meets the threshold for registration. These are separate things, and inspectors look for both. The most common, and most avoidable, lapses are simple: an expired contractor certificate, a project registration number that was never displayed, or registration details that do not match the entity actually signing the contract and running the payroll.

  • A valid, current contractor registration certificate.
  • Project registration for works that meet the threshold, before work begins.
  • The project registration number displayed on site.
  • Registration details that match the contracting entity and the payroll records.

The construction levy

NCA maintains a construction levy on registered projects, calculated against the value of the works. Treat it as a project cost to be budgeted from the start, not a surprise discovered mid-build. Contractors who keep clean project cost records find the levy straightforward — they know the project value, they know the levy, and they can prove both. Sloppy records turn a routine charge into a negotiation.

The site records inspectors ask for

An NCA inspection is a records inspection as much as a site visit. The inspector is checking that the project is registered, that workers are accounted for and that the contractor is compliant with employment obligations. Keep the file assembled and current, so that when the call comes you are handing over documents rather than searching for them.

  • The contractor registration certificate and the project registration details.
  • A muster roll of the workers on site.
  • Evidence of statutory deductions and the returns filed for them.
  • Insurance records, including work-injury (WIBA) cover.
  • The site diary, inspection notes and safety records.

The payroll documentation that matters

NCA reads your worker records the way an auditor does: do the numbers hang together? Payroll built from a verified muster roll, statutory deductions calculated per worker, and payslips that reconcile to the payments made all point the same way — to a contractor who knows exactly who worked and what they were paid. FundiPay produces the muster roll, applies PAYE, NSSF, SHIF and the housing levy automatically, and issues a digital payslip to every fundi, so the compliance file is a by-product of running payroll properly.

Frequently asked questions

Do I need to register my project separately from my contractor registration?

Yes. Contractor registration and project registration are distinct. You register as a contractor to operate, and the project is registered in its own right once it meets the threshold. An inspector will look for both the contractor certificate and the project registration number.

What happens if my NCA registration expires mid-project?

Working without a valid registration exposes you to penalties and can stall the project. Diarise the renewal date and start the process well before it lapses. Renewal is administrative when handled early and painful when handled late.

Which worker records does NCA expect to see?

At minimum, a muster roll showing the workers on site. In practice, inspectors want records that tie workers to wage payments — attendance, statutory deductions and a record of pay. A digital roll with geotagged check-ins answers all of these at once.

Can software make NCA compliance easier?

It removes the biggest weak point: records built from memory and paper. When the muster roll is locked before payroll and every payment carries an M-Pesa trail, your compliance file is produced automatically rather than reconstructed before an inspection.

Keep reading

Pay every fundi on Friday

Direct M-Pesa B2C, geofenced muster rolls and a 14-day payroll float — built for Kenyan construction sites. Bila ya kutoa.