Avoid National Construction Authority levy at own risk

National Construction Authority officials at a construction site. The Authority charges a levy for any building worth more than Sh5 million. [PHOTO: FILE/STANDARD]

I intend to construct a commercial building in Kiambu following influx of businesses as devolution continues to take root. I am, however, concerned that there is a new levy that should be paid to the National Construction Authority since this may eventually increase my investment cost. Kindly advise whether the levy is legal and how much I would be required to pay for the same. What would be the repercussions should I choose to ignore the levy and construct towards avoiding extra hidden costs?

The National Construction Authority (NCA) imposed a levy of 0.5 per cent of the value of any commercial or residential building whose value exceeds Sh5 million. For instance, an investor who wants to construct a building whose value is Sh10 million will pay Sh50,000 construction levy.