Kenya's real estate conversation is usually dominated by familiar subjects. Land prices. Housing demand. Mortgage rates. Construction costs. Property prices. Rental yields. Infrastructure. Developers and investors. But underneath all of these is a more fundamental question: Who determines how Kenya actually builds? The answer is not one institution. The built environment is shaped by developers, architects, engineers, quantity surveyors, contractors, county governments, environmental regulators, occupational-safety authorities, financiers and several other institutions. But at the centre of the construction industry sits one particularly important institution: The National Construction Authority (NCA).

Established under the National Construction Authority Act No. 41 of 2011, NCA's statutory object is to oversee the construction industry and coordinate its development. Its mandate includes promoting the development of the industry, quality assurance, enforcement of the Building Code, contractor registration, accreditation of construction workers and site supervisors, research, training and construction-industry information systems. That makes NCA considerably more important to Kenya's real estate sector than its popular image as simply a contractor-registration agency might suggest. At Stable Merchants, we believe the more interesting question is: Can NCA help Kenya move from simply building more to building better?

1. Why NCA matters to Real Estate

Real estate is ultimately a physical industry. A bank can finance a development. An investor can provide equity. A developer can acquire land. A marketing team can sell apartments. But someone still has to build the physical asset. And the quality of that construction affects almost everything that comes afterwards. A poorly constructed building can suffer from:

• Structural problems;
• Defects;
• High maintenance costs;
• Lower tenant demand;
• Lower resale value;
• Insurance complications;
• Financing challenges; and
• Potential safety risks.

Conversely, a well-constructed asset can preserve value for decades. This is why construction regulation is not separate from real estate. It is part of the real-estate value chain.

2. NCA's mandate is broader than contractor registration

NCA's statutory responsibilities cover a much wider area. The Authority is mandated to:

• Promote and stimulate development of the construction industry;
• Advise government on construction matters;
• Undertake and commission research;
• Promote quality assurance;
• Enforce the prescribed Building Code;
• Encourage standardisation of construction techniques and materials;
• Maintain construction-industry information systems;
• Coordinate training;
• Accredit and register contractors;
• Accredit and certify skilled construction workers and site supervisors; and
• Develop a code of conduct for the industry. 

That is effectively a mandate covering regulation, capacity, quality, information and industry development. It is therefore useful to think of NCA as having two broad roles.

The regulator: It establishes and enforces standards.

The industry developer: It is also expected to help professionalise, modernise and strengthen the construction industry. That second role is particularly important.

3. The contractor is only one part of the system

One of NCA's most visible functions is contractor registration. Contractors are classified according to categories and classes of work, and NCA maintains a register of contractors. The registration requirements include corporate documentation, tax compliance, qualified technical personnel, NCA-accredited workers, business licensing, audited accounts or bank statements and evidence of experience. For developers, this matters. The quality of the contractor is one of the most important determinants of construction outcomes. 

But NCA's system goes further. Construction workers and site supervisors also have to be accredited. NCA states that accreditation is intended to ensure that individuals participating in construction trades possess the necessary skills, while workers without formal technical qualifications can enter through provisional accreditation or apprenticeship routes. This is important because construction quality is not created by the contractor's registration certificate alone. It is created on the site.

4. The project registration function is particularly important

One of NCA's less appreciated functions is construction project registration. NCA requires construction projects, public or private, to be registered. The developer is responsible for registration. The process requires, among other things:

• Registered contractors and subcontractors;
• Registered professional consultants;
• Approved architectural and structural drawings;
• County planning approvals;
• Relevant environmental and other statutory approvals;
• Quantity-surveyor documentation; and
• The developer's KRA PIN and contractual documentation. 

This creates something that is extremely valuable for an industry as large and fragmented as construction: a formal record of what is being built. NCA describes project registration as a mechanism for streamlining the industry, planning and maintaining construction records, making quality assurance more systematic. From an investment perspective, reliable construction records are valuable. They create greater visibility around the asset's development history.

5. The National Building Code 2024 is a major development

Perhaps the most significant regulatory development in recent years is the National Building Code 2024. The previous building framework dated back to 1968. The new Code was published on 1 March 2024 and came into force on 1 March 2025 after a one-year transition period. The significance goes beyond replacing an old document. The Code provides a contemporary framework covering:

• Planning;
• Design;
• Building elements;
• Materials;
• Structural design;
• Internal and external services;
• Safety;
• Quality and wellness;
• Inspection;
• Maintenance; and
• Demolition. 

For Kenya's rapidly urbanising cities, that matters enormously. The country is no longer building the same type of city it was building in the 1960s. The regulatory framework therefore has to evolve with the built environment. We are developing:

• High-rise apartments;
• Mixed-use developments;
• Master-planned communities;
• Logistics facilities;
• Industrial parks;
• Student accommodation;
• Shopping and lifestyle centres; and
• Large infrastructure projects.

6. Regulation alone does not guarantee safety

This is where the discussion becomes more nuanced. One of the most important lessons from the recent South C building collapse is that having a regulatory framework and having effective compliance are not the same thing. According to NCA's January 2026 update, the South C project had been registered in November 2023 and had undergone four quality-assurance inspections during construction. The final inspection found construction within the approved scope at that time.

However, investigations following the collapse found that four additional floors had subsequently been constructed beyond the approved design. NCA said its Board would conduct a formal inquiry under Section 22 of the NCA Act. This raises an important industry question: How do we move from periodic compliance checks to continuous compliance? That is a much harder regulatory problem. And it is not necessarily an NCA problem alone.

7. The built environment is a Multi-Regulator Ecosystem

This is an important distinction. NCA does not operate in isolation. Project registration itself requires approvals and professional participation from various institutions, including county governments, NEMA and professional regulatory bodies where applicable. NCA has also been working with Directorate of Occupational Safety and Health Services (DOSHS) to improve construction safety coordination. In February 2026, the two institutions discussed a risk-based inspection approach, better information sharing, regulatory-system integration and coordinated enforcement. This is potentially a significant shift. Rather than treating every construction site identically, regulatory resources could increasingly be directed towards higher-risk projects. That could be much more efficient.

8. NCA is becoming a source of industry intelligence

Another area I find particularly interesting is NCA's research function. The Authority publishes the Construction Industry Outlook, which it describes as a source of verifiable records and statistics on Kenya's construction industry and a guide for potential investors. Its latest Construction Industry Outlook 2024 paints a mixed picture. Construction-sector growth moderated from: 6.7% in 2021 to 3.0% in 2023 and a provisional: -0.7% in 2024. At the same time:

• Formal construction employment reached 236,000 jobs in 2023;
• Government housing expenditure for FY2024/25 rose to KSh86.5 billion;
• Cement production declined from 9.79 million tonnes in 2022 to 8.78 million tonnes in 2024;
• Construction inspections rose from 18,285 in 2022 to 32,628 in 2024. 

This is useful information for developers and investors. Construction activity is not simply "booming" or "collapsing." Different parts of the ecosystem are moving differently.

9. Research is becoming more strategic

NCA's research portfolio also shows how broad the institution's ambitions have become. Its current publications include research into:

• Building failures and collapses;
• BIM adoption;
• Construction and demolition waste;
• Science, technology and innovation;
• Contractor productivity;
• Mechanisation;
• Affordable-housing contractor performance; and
• Construction research recommendations. 

The inclusion of BIM, for example, is particularly relevant. Building Information Modelling has the potential to improve coordination between architects, engineers, contractors and other project participants. NCA has already been pursuing a roadmap for enhancing BIM uptake in Kenya. This points towards an industry moving from traditional regulatory compliance towards digital construction management and data-driven delivery.

10. Construction waste is becoming a Real Estate issue

NCA's revised Construction and Demolition Waste Management Strategy is another development worth watching. The Authority estimates that construction and demolition waste represents approximately 40% of urban waste generated in Kenya. Its new strategy targets a 20% recovery and recycling rate directly on construction sites over five years. This might initially appear to be an environmental issue. It is also a real-estate issue. Waste affects:

• Construction costs;
• Site efficiency;
• Environmental compliance;
• Urban infrastructure;
• Development timelines; and increasingly
• The sustainability credentials of buildings.

As institutional investors place greater emphasis on ESG and sustainable assets, construction-waste management could increasingly become part of the investment equation.

11. The new strategic plan is perhaps the most important signal

NCA's Strategic Plan for 2025/26–2027/28 identifies five broad priorities:

     1. Regulatory compliance and quality assurance

     2. Research, innovation and technology adoption

     3. Capacity development

     4. Industry empowerment and stakeholder support

     5. Institutional efficiency and operational excellence. 

This is an important evolution in the institution's direction. It suggests that NCA is positioning itself not merely as a licensing authority but as an organisation that wants to influence the productivity, technology, professionalism and sustainability of the entire industry.

12. What does this mean for Developers?

For developers, a stronger NCA can initially feel like additional regulation. There are more requirements. More documentation. More inspections. More compliance obligations. But there is another side. A predictable regulatory environment can ultimately reduce risk. If developers know:

• What standards apply;
• What professionals are required;
• What documentation is necessary;
• What constitutes compliance;
• How inspections work; and
• What happens when standards are breached, then regulatory certainty can become an asset. The real objective should therefore not be less regulation. It should be: better regulation. Regulation that is predictable, transparent, technologically enabled and consistently enforced.

13. What does it mean for property Investors?

This is perhaps where the NCA discussion becomes most relevant to Stable Merchants. An investor buying a KSh20 million apartment is not simply buying square metres. They are buying the accumulated quality of: Land + design + approvals + materials + workmanship + construction supervision + maintenance + location + infrastructure. NCA influences several of these variables directly or indirectly. That means regulatory quality eventually feeds into asset quality. And asset quality feeds into: Value retention. Rental demand. Maintenance costs. Insurance. Financing. Resale value. This is why construction regulation should matter to investors even when they never interact with NCA themselves.

14. The Question of Enforcement

There is, however, a difficult question Kenya cannot avoid. Does the country have enough regulatory capacity to enforce the standards it is creating? A modern Building Code is valuable. A strategic plan is valuable. Digital project registration is valuable. Research is valuable. But ultimately: Standards only protect the public when they are enforced. The South C incident demonstrates the challenge. A project can be registered. It can be inspected. And circumstances can subsequently change. That means Kenya may increasingly need continuous, risk-based and data-driven oversight, rather than relying primarily on periodic inspections. NCA's 2026 discussions with DOSHS around risk-based inspections suggest that this direction is already being considered.

15. Where we think NCA could have the greatest impact

Looking ahead, we believe five areas deserve particular attention.

Safety: Reducing building failures and construction-site accidents must remain the first priority. Professionalisation: Contractors, site supervisors and skilled workers need stronger competency standards and continuous development.

Technology: BIM, digital project registration, data systems and risk-based inspections can make regulation more effective.

Industry productivity: Better construction methods, mechanisation and contractor capacity can help reduce project costs and delays.

Market intelligence: Reliable construction data can help developers, investors, banks and policymakers make better decisions.

Our View

At Stable Merchants, we believe Kenya's real estate conversation needs to move beyond how much we are building. We need to start asking: How well are we building? Because the real estate industry is ultimately only as strong as the built environment it produces. The National Construction Authority therefore occupies an important position in Kenya's development story. Its mandate is much broader than contractor registration. It sits at the intersection of:

     1. Regulation.

     2. Construction quality.

     3. Safety.

     4. Professionalisation.

     5. Technology.

     6. Research.

     7. Industry development.

     8. And ultimately, Property value.

The new Building Code, the latest Strategic Plan, the Construction Industry Outlook, the growing emphasis on research and technology, and the move towards risk-based inspection all suggest that NCA is entering an important phase in its evolution. But the measure of success will not be the number of licences issued or documents published. It will be whether Kenya's buildings become safer, better constructed, more sustainable and more professionally delivered. Because when an investor puts money into a building, they are not just investing in walls, floors and finishes. They are investing in the integrity of the system that produced the building. And that makes NCA an institution that every serious participant in Kenya's real estate industry should be watching.

Stable Merchants Limited
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