Update:
The engineer’s scale of fee for professional engineering services was gazetted in 2022, for a compressive guide, download the “Gazetted The Engineers Scale of fees for Professional Engineering Services in Kenya“
Service engineers are an integral part of any building project. They are crucial as they ensure the integrity of electrical and mechanical services. They are indispensable, and they come with a cost. Any client or project manager would wish to know their cost beforehand. They are paid in terms of fees. Professional engineering fees reflect the value of services received by the client Nevertheless, the parties involved are free to develop arrangements suited to specific situations within the parameters presented in the guidelines published by the Engineers Board of Kenya. The client typically expects basic project services and additional ones for which the engineer is often retained. Such services include:
1. Advisory Service
2. Preliminary Design Service
3. Final Design Services and Contract Documents
4. Tender Call Services 5. Contract Administration Services
6. Project Management Services
7. Construction Management Services
The nature of the project will determine the scope of the services required and the necessary form of agreement. With the enactment of the Engineers Act, 2011 came the repeal of Engineers Act Cap 530 of 1969 and with its provisions of the establishment of scales of fees for engineering professional services. To enforce this act the Engineers Board of Kenya published, in October 2013, the scale of fees and conditions of engagement for consulting engineering services in Kenya. The fees are based on one of three methods of calculation:
- Fixed Contract/ Lump Sum Fees
- Percentage Fees and
- Time Charges
Fixed Contract/ Lump Sum Fees
Depending on the nature of the project, the client and the consulting engineer may decide on a lump sum by negotiation in advance of the project. This is suitable in instances where the full extent of the services can be determined. Lump sums may be broken down into components applicable to particular duties or stages of work. Comparisons with fees calculated by the percentage method usually give an indication of the appropriate levels of lump sums.
Percentage Fees
These fees are agreed upon between the client and consulting engineer as a percentage of the cost of the project as shown in table 2 or the cost of the works as shown in table 3. The amount paid, therefore, varies with changes in the installation cost. Usually, the cost is based on the final cost of the project or works and interim accounts are invoiced on estimates of what that cost will be. However, sometimes different percentages of the estimated or actual costs at different stages of work.
Service % Charge on Cost of Project:
- Electrical 1.5% to 2.0%
- Electrical Engineering Systems 1.0% to 1.5%
Percentage charges on the basis of the cost of a project. Source EBK
Electrical Engineering Systems refers to such services as but is not limited to security systems, access control, structured cabling and other ICT systems, Video Conferencing, Public Address Systems, Conferencing Systems, Generators, Solar and other renewable energy sources. Cost of Works in KSHS. Minimum Fees as % of Cost of Works New Works Existing Works
| Cost of Works in KSHS. | Minimum Fees as % of Cost of Works | |
| New Works | Existing Works | |
| 20,000,000 and below | 10.00 | 12.00 |
| From 20,000,000 to 40,000,000 | 8.50 | 10.00 |
| From 40,000,000 to 80,000,000 | 7.50 | 9.75 |
| From 80,000,000 to 160,000,000 | 7.00 | 8.75 |
| From 160,000,000 to 240,000,00 | 6.50 | 7.75 |
| From 240,000,000 to 320,000,000 | 6.00 | 7.10 |
| From 320,000,000 to 400,000,000 | 5.50 | 6.60 |
| From 400,000,000 to 480,000,000 | 5.00 | 6.20 |
| From 480,000,000 to 640,000,000 | 4.80 | 5.90 |
| From 640,000,000 to 800,000,000 | 4.60 | 5.50 |
| From 800,000,000 to 1,200,000,000 | 4.40 | 5.20 |
| From 1,200,000,000 to 1,600,000,000 | 4.30 | 5.10 |
| From 1,600,000,000 to 2,000,000,000 | 4.20 | 5.05 |
| Over 2,000,000,000 | 4.10 | 5.00 |
Table 1: Percentage charges on the basis of cost of works. Source EBK
Notes for Table 3
i) These rates have been set on the basis of current practices in other countries and based on the experience gained over the years in the local engineering consultancy industry.
ii) The traveling time charge is additional to this fee.
iii) Cost of works means the cost of that particular element (field) of the project, including the respective proportion of preliminary and general items and Value Added Tax.
iv) The rates are applicable for either the infrastructure works, building works or any other works.
v) The rates are exclusive of Value Added Tax.
vi) The maximum fee as % of the cost of works shall be not more than 15% of the minimum charges in table 2 above
Time Charges
Time charges are employed when the project cost cannot be estimated in advance. The client remunerates the consulting engineer on the basis of time charge for staff actually employed on the project. Time-based charges are used for studies, advisory services and consultations. The applicable rates are shown in Table 1 unless otherwise agreed upon between the client and the consulting engineer.
| POSITION | RATES IN (KShs.) | ||
| HOURLY | DAILY | MONTHLY | |
| Level A – (Specialist) | 10,800- 13,500 |
64,800- 81,000 |
1,080,000- 1,350,000 |
| Level B – (Principal) | 9.000- 12,000 |
54,000- 72,000 |
900,000- 1,200,000 |
| Level C – (Senior Engineer) |
6,500-9.000 | 42,000- 54,000 |
700,000–900,000 |
| Level D – (Engineer) | 4,500-6,500 | 33,000- 42,000 |
550,000–700,000 |
| Level E – (Graduate Engineer)/ (Senior Technician) |
3,000-4,500 | 21,000- 27,000 |
350,000–450,000 |
| Level F – (Technician) | 2,000-3,000 | 15,000- 21,000 |
250,000–350,000 |
| Level G – (Technical Assistant) / Secretary |
1,350-2,000 | 9,000- 15,000 |
150,000–250,000 |
Table 2: Rates for payment on time-basis. Source EBK
Notes for Table :
i) These rates shall be reviewed from time to time depending on the behaviour of the consumer index, inflation rate and currency devaluation.
ii) The daily rates are based on hourly rates multiplied by 6 Working Hours, while the monthly rates are based on the hourly rate multiplied by 100 Working Hours.
iii) Specialist shall mean a Consulting Practitioner/Engineer with specific skills and minimum experience of fifteen (15) years, whose expertise and relevant experience is considered to be exceptional and is recognized as that of an expert, in a particular field.
iv) Principal shall mean a Director, a Partner or an Associate in the firm registered by EBK as a Professional Engineer and having a minimum experience of twelve (12) years from the date of registration.
v) Senior Engineer shall be a professional engineer registered as such by EBK and have a minimum experience of Ten (10) years from the date of registration.
vi) Engineer shall be a professional engineer registered as such by EBK, and having Not less than seven (7) years experience from the date of graduation.
vii) Graduate Engineer shall be a Graduate Engineer registered as such by EBK.
viii) Senior Technician shall be an HND holder from a recognized College and has had a minimum experience of ten years from the date of graduation.
ix) Technician shall be an HND holder from a recognized College whose experience is less than ten years from the date of graduation.
x) Technical Assistant shall be an Ordinary Diploma holder from a recognized College with a minimum experience of five years from the date of graduation.
xi) The rates are applicable for the infrastructure works, building works or any other works.
xii) The rates are exclusive of Value Added Tax.
STAGES OF PAYMENT OF FEES
The proportions of the total fees for the works to be paid to the consulting engineer against the relevant stages of professional services shall be as shown in Table 3.
Unless otherwise specified or mutually agreed upon beforehand between the client and the consulting engineer, the fee apportioned to each stage shall be paid in full.
| Item | Stage of Work | Fee Payable |
| 1 | Design Stage (Preliminary & Sketch Design) |
30% |
| 2 | Design Stage (Detailed Design) | 40% |
| 3 | Tender Stage | 5% |
| 4 | Construction Stage / Installation | 25% |
Table 3: Stages of payment of fees. Source EBK.
PERCENTAGE CHARGES ON THE BASIS OF COST OF PROJECT FOR ENGINEERING FIELDS
| Service | % charge on the cost of the project |
| Civil | 0.5% to 1.0% |
| Structural | 3.0% to 4.5% |
| Mechanical | 1.5% to 2.0% |
| Electrical | 1.5% to 2.0% |
| Engineering Systems | 1.0% to 1.5% |
Notes for Table 4
i) This table applies to building projects for which normally the team leader is an Architect and not an Engineer. The Consulting Engineer is thus a member of the project team. Where the Consulting Engineer is appointed as the Lead Consultant, an additional fee equivalent to 1.0% of the cost of the project shall apply.
ii) Lower range should be applied for projects with a value of more than KSHS. 1,600,000,000 and the higher range of projects of less than KSHS.1,600,000,000. However, where the work is complex, the higher rate should apply irrespective of the cost of the project.
iii) Engineering Systems refers to any engineering services, which are outside the direct ambit of the conventional civil, mechanical, and electrical services, such services as but not limited to, Lifts, Escalators and other transportation systems in buildings; security systems, access control, structured cablings and other ICT systems, Video Conferencing, public address systems,
conferencing systems and other telecommunication systems; generators, solar and other renewable energy sources and air cleaners.
iv) Repetition Works (Design only) in same location:
| First unit | 100% |
| Subsequent units | 70% |
| Supervision (full) | (100%) |
v) The travelling time charge is additional to this fee.
vi) Cost of the project means all costs involving the cost of all elements (fields) of the project, inclusive of Value Added Tax.
vii) The rates are applicable for works in buildings only.
viii) The rates are exclusive of Value Added Tax.
For a compressive guide, download the “Gazetted The Engineers Scale of fees for Professional Engineering Services in Kenya“
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