Engineering costs

Clear, practical guide to engineering fees in Kenya — explain Legal Notice No.20 (2022), Nairobi vs Kisumu benchmarks, worked KES examples, downloadable RFP & quote sheet, stage-by-stage payment templates, and an easy checklist to hire the right engineer.

Introduction:

This transactional guide helps developers, homeowners, and contractors understand engineering costs in Kenya, compare quotes, and select the best payment model — whether percentage, fixed, or hourly. It is based on the official fee framework under Legal Notice No.20 of 2022 and includes local insights, negotiation tips, and ready-to-use templates to simplify your project budgeting.

How engineering fees are set in Kenya (short primer)

The legal backbone: Legal Notice No.20 (Engineers — Scale of Fees, 2022) — what it mandates and stage minimums.

Engineering fees in Kenya are officially guided by Legal Notice No.20 of 2022, issued under the Engineers Act. This legal framework outlines the minimum scale of fees for professional engineering services, including design, documentation, and supervision stages.

It categorises projects by value and type, ensuring fairness and consistency in how consultants charge. For most projects, engineers charge a percentage of the total construction cost, with clear stage-based splits for each discipline.

Who enforces it and why firms still vary (professional boards, trade practice).

The Engineers Board of Kenya (EBK) is responsible for enforcing the scale of fees and regulating licensed engineers. However, market rates still vary due to project complexity, firm experience, and negotiation flexibility.

In Nairobi, higher overheads and demand for specialised engineers often push costs above the minimum rates, while smaller towns like Kisumu or Eldoret may offer lower charges due to fewer administrative expenses

Fee models explained (quick decision guide)

Percentage of project cost (how it works) — LN20 % bands and when they apply.

The most common model is charging a percentage of the project’s total construction cost. Under LN20/2022, the percentage ranges differ depending on the discipline — structural, civil, or MEP.

Smaller projects attract slightly higher percentages since the scope doesn’t scale linearly with cost, while large commercial developments get lower percentages due to economies of scale.

This model ensures fees are tied to actual project value and encourages thorough engineering supervision throughout construction.

Fixed lump-sum — pros/cons and when to use.

A fixed-fee model works best for well-defined, short-duration projects like minor renovations, equipment installations, or geotechnical reports.

It gives the client cost certainty upfront but limits flexibility for design changes. For complex or evolving projects, this model may lead to variation claims later, so clarity in the scope is critical before signing.

Hourly/day rates & retainers — sample hourly bands and how to estimate.

Hourly or daily billing suits consultancy, expert assessments, or troubleshooting work. Rates vary depending on expertise, with senior engineers commanding higher rates than junior consultants.

This model benefits clients who need limited advisory input without committing to full design services. A retainer agreement can also be arranged for recurring or long-term projects, offering predictable monthly costs.

Hybrid & staged payments (retainer + % + milestone payments).

Hybrid models combine the strengths of multiple fee structures — for example, a percentage fee for design plus milestone payments for supervision.

Some firms also include a retainer to secure ongoing availability during construction. This flexibility helps manage cash flow for both the client and the consultant, ensuring accountability at every stage of delivery.

Minimum stage fees & how to read stage tables

Feasibility → Detailed design → Supervision stage percentages (LN20 stage splits).

Under Legal Notice No.20 of 2022, engineering fees in Kenya are divided into stages — feasibility, detailed design, and construction supervision. Each stage carries a specific percentage of the total fee to ensure fair payment for the scope completed.

Typically, the feasibility and preliminary design take a smaller share, while detailed design and supervision consume the bulk of the fee since they involve extensive calculations, documentation, and site visits.

Understanding these splits helps clients align payment schedules with deliverables, avoiding disputes later in the project.

How to apportion design vs supervision in your budget.

When planning your budget, allocate most funds toward detailed design and supervision. Design fees cover the technical drawings and approvals, while supervision ensures construction follows approved plans.

A common approach is to allocate roughly two-thirds of total fees for design and one-third for supervision, though this may vary by project size and complexity.

Always confirm these ratios in the agreement before commencement to prevent underfunding critical stages.

Fee breakdown by discipline (structural, civil, MEP, geotech, specialist)

Typical % ranges per discipline (structural, mechanical, electrical, geotech).

Engineering costs in Kenya differ across disciplines due to varying technical inputs. Structural and civil engineers often charge similar percentage ranges since both handle major load-bearing and infrastructure elements.

Mechanical and electrical engineers (MEP) may charge slightly lower percentages but often work on complex building systems requiring precision and coordination. Geotechnical engineers, on the other hand, charge either a fixed or percentage-based rate depending on the nature of soil investigations and reporting.

These ranges are all anchored on the LN20/2022 fee schedule but may shift depending on project scope and location.

When specialist reports add to fees (soil tests, traffic, environmental).

Additional specialist studies can increase the total engineering cost, especially for large developments. Examples include soil tests, environmental impact assessments, or traffic analyses required for county approvals.

Such reports are typically billed separately since they involve independent fieldwork and specialised equipment. Always request itemised quotations to distinguish between the base design fee and these optional investigations.

Engineering costs in Nairobi are generally higher due to demand for top-tier consultants and complex urban projects. The concentration of experienced engineers, higher operational costs, and stringent project standards contribute to premium pricing.

Many Nairobi-based firms also charge slightly above the LN20 minimums because clients often require advanced documentation, BIM integration, or multidisciplinary teams.

Kisumu & tier-2 city expectations — sample lower-bound ranges and how to find local firms.

In Kisumu and other tier-2 cities, engineering fees tend to be 10–20% lower than Nairobi due to smaller overheads and a more localised project scale. Local firms often provide better flexibility for residential and small commercial works.

To find affordable yet qualified consultants, check the Engineers Board of Kenya directory and look for firms registered in your county.

Remote & county cost-savings (travel, local partners).

For projects in rural or remote counties, additional savings can be achieved by engaging engineers who collaborate with local site agents or technicians. This reduces travel costs and delays.

However, ensure these partnerships still maintain EBK oversight and proper documentation to meet compliance requirements during inspection or approval stages.

Worked KES examples & conversion tables (NEW)

4 project-size worked examples: KES 2M, 10M, 50M, 200M — convert LN20 % bands to real KES fees (design / supervision split)

To understand engineering costs in Kenya, it helps to convert LN20 percentages into actual KES amounts.

Here are four worked examples using the typical 6% → 3% declining fee bands:

• KES 2M project – ~KES 120,000 total (Design 60%, Supervision 40%).
• KES 10M project – ~KES 500,000 total (Design 300K, Supervision 200K).
• KES 50M project – ~KES 2.25M total (Design 1.35M, Supervision 0.9M).
• KES 200M project – ~KES 6M total (Design 3.6M, Supervision 2.4M).

These examples help clients visualise budget allocations and ensure fair pricing across all project scales.

Printable quick-reference table: percentage → KES for common budgets

A quick reference helps during tendering or budgeting. For instance, 5% of KES 20M equals KES 1M, while 4% of KES 100M equals KES 4M. You can create a simple conversion sheet using Excel or Google Sheets to adjust instantly for your project size.

How to get accurate, comparable quotes (RFP → evaluation)

RFP checklist (scope, deliverables, milestones, exclusions) — downloadable template (copy/paste)

Your Request for Proposal (RFP) should clearly define project details to attract realistic bids.

Include:

• Scope of work and expected deliverables
• Project timeline and milestones
• Reporting frequency and supervision levels
• Specific exclusions (e.g., site surveys or EIA costs)

A well-drafted RFP avoids hidden costs and keeps all bidders aligned.

How to request staged proposals and ask for unit rates for variations

Ask engineers to quote per stage — design, tender documentation, and supervision — instead of one total fee.

Also, request unit rates for variations such as additional site visits or drawing revisions to avoid inflated later charges.

Quote comparison sheet (CSV/XLS) — how to score proposals

Prepare a simple sheet listing each firm’s name, quoted fee, experience, and deliverables.

Assign points (for cost, expertise, and scope coverage) to score bids transparently.

The lowest quote isn’t always best — balance cost and capability.

What to look for in a quote: red flags & negotiation levers (NEW)

Missing deliverables, vague scope, no PI insurance, low-balled supervision fees

Be cautious of quotes that skip clear deliverables or lack Professional Indemnity (PI) insurance.

Some firms lower supervision fees to win bids but later claim extra charges during construction.

Always ask for written clarification before approval.

Negotiation tactics: scope carving, fixed-price packages, performance milestones

You can negotiate professionally by narrowing the scope (“design-only” contracts), bundling services into fixed-price packages, or tying payments to performance milestones.

This ensures fairness and measurable progress without breaching LN20 guidelines.

Contracts, deposits and standard clauses (practical templates) (NEW)

Standard payment schedule sample (percent by stage)

For transparency, follow a simple breakdown:

• 20% at project start (design initiation)
• 30% after detailed drawings
• 40% at supervision commencement
• 10% upon completion and handover

This structure protects both client and consultant from disputes.

Key contract clauses to insist on (scope, variations, liability cap, deliverables, termination, IP)

Your contract should define scope of services, approval for variations, liability limits, and ownership of intellectual property (drawings).

Include termination terms and deliverable timelines to maintain accountability.

Sample short-form contract for small residential jobs

For smaller projects, use a one-page agreement that states the engineer’s role, deliverables, payment terms, and start–end dates.

Even for residential work, formal documentation prevents misunderstanding and ensures professionalism.

Taxes, VAT, insurance & regulatory costs (missing in many guides) (NEW)

VAT on professional fees and how to budget for it

All engineering fees in Kenya are subject to 16% VAT, which must be added on top of the quoted base fee. When comparing quotes, confirm whether VAT is included or separate to avoid surprise costs.

For example, a KES 1,000,000 fee becomes KES 1,160,000 once VAT is applied.

Professional indemnity (PI) insurance expectations and who should pay

Engineers are expected to carry PI insurance covering design errors or negligence. The cost of this cover is usually embedded within their overheads, not billed separately. However, clients should verify the policy’s validity and limit before signing the contract.

Registration and licensing costs for consulting firms

Registered consulting firms pay annual EBK licensing fees and may incur other compliance costs like NCA registration or professional membership renewals.

While these don’t directly affect your invoice, they contribute to the overall service cost structure.

Public procurement & government projects: how fees differ (NEW)

Tendering, procurement modes and fixed-fee expectations for government work

Government projects in Kenya follow strict public procurement laws, typically requiring open tenders or restricted bidding. Consultants are expected to offer fixed-fee quotes aligned with LN20 rates, with limited negotiation once awarded.

Harmonising your quote with public procurement timelines and documentation requirements

To compete successfully, engineers must align proposals with PPRA timelines, provide tax compliance certificates, and attach EBK registration proof.

Delays in submitting proper documents often disqualify bids, regardless of pricing.

Cost-saving strategies that don’t compromise safety

Early value-engineering and use of standard details

Engaging engineers early during design allows for value-engineering, where cost-effective materials and structural systems are chosen without reducing safety.

Using standardised structural details also cuts drafting time and approval delays.

Bundling disciplines vs separate consultants (savings vs accountability trade-offs)

Hiring one firm for civil, structural, and MEP services can save 5–10% overall, but it reduces accountability if one discipline underperforms.

For complex projects, separate specialists ensure quality control and clearer deliverables.

Use of BIM/simple modelling to reduce rework

Using Building Information Modelling (BIM) helps visualise design clashes early, reducing costly site changes.

Even basic 3D modelling in tools like Revit or SketchUp can improve coordination between engineers and architects.

How QS, architects & contractors interact with engineering fees

Who pays for what: split of consultant vs contractor scope

Typically, consultants handle design, documentation, and supervision, while contractors execute works and pay for site-level tests.

Clarify early whether materials testing, surveys, or inspections are part of the engineer’s fee or billed separately.

How QS allowances for tests and permits affect your engineering budget

Quantity Surveyors (QS) often include allowances for tests, permits, and reports under provisional sums.

If these overlap with the engineer’s scope, you could double-pay.

Always cross-check QS and engineering cost breakdowns during tender review.

Case studies & real quotes (anonymised) — practical proof (NEW)

Small house (KES 2M): sample quote & negotiation outcome

A homeowner in Nakuru received a KES 120,000 quote (6%) for design and supervision.

After clarifying supervision scope, they negotiated a KES 100,000 lump-sum with clear milestones — a fair, LN20-compliant outcome.

Apartment block (KES 50M): design + supervision split

A Nairobi apartment developer paid KES 2.3M total, split as 1.35M for design and 0.95M for supervision.

Bundled MEP services added efficiency without raising total cost significantly.

Commercial retrofit: common add-ons and cost drivers

For retrofits, engineers often charge 10–15% extra due to unknown site conditions and coordination with existing utilities.

Cost drivers include testing, demolition planning, and service rerouting.

Tools & templates to download (lead magnets)

RFP template (editable)

A ready-to-edit Request for Proposal (RFP) template helps you define scope, timelines, deliverables, and evaluation criteria.

It reduces back-and-forth communication and ensures fair comparisons.

Quote comparison spreadsheet

This spreadsheet allows side-by-side quote scoring for cost, experience, scope coverage, and timeline.

Weighting columns help visualise overall value rather than relying on lowest bid only.

Fee calculator script / embeddable widget (percentage → KES)

An interactive fee calculator converts LN20 percentages into KES estimates instantly, ideal for quick project feasibility checks.

It can be embedded into websites or shared with clients.

Quick checklist: hiring the right engineer in Kenya

Registration, PI insurance, references, sample deliverables, tender shortlist

Before hiring, confirm:

• EBK registration (consulting or professional category)
• Valid PI insurance
• At least two client references
• Sample drawings or reports
• Clear scope in tender documents

These checks protect your investment and ensure you work with qualified professionals.

Conclusion (action steps & contact/CTA)

Understanding engineering costs in Kenya helps you budget accurately, avoid underquoting, and comply with Legal Notice No. 20 of 2022. Whether you’re developing a residential home, commercial building, or government project, knowing how percentage bands convert to real KES values gives you negotiation power and transparency.

Before signing any agreement, compare at least three detailed quotes, confirm VAT inclusion, and ensure your engineer holds valid EBK registration and PI insurance. Use the provided templates, calculators, and checklists to keep your process organised and compliant.

Ready to plan your project more confidently?

Download the free RFP and quote comparison templates to start getting accurate engineering cost proposals today.