Private security firms have a week to commit themselves to paying their guards the new gazetted salaries.
A notice by the Private Security Regulatory Authority dated January 29 said any private security company that fails to comply with the directive shall be subjected to a statutory review of its registration and licensing status in accordance with the law.
“Take notice that any private security company that fails to submit a duly signed and commissioned copy of the Legal Commitment within the next 7 days from the date of this directive shall be subjected to a statutory review of its registration and licensing status in accordance with Section 32 of the Act,” said the authority director general Fazul Mahamed.
The authority has drafted a legal commitment form that the directors of each private security firm must sign committing to pay guards operating within Nairobi, a basic minimum wage of Sh30,000 and Sh27,183 for those operating outside the Nairobi metropolitan area.
The owners of the firms will be required to provide evidence of the same by availing a copy of the latest payslip for its security guards.
Firms will not be able to hide the number of guards employed at their companies as the same list is required by the authority for registering and processing their Guard Force Numbers.
The move follows the government’s move to regulate the sector in recognition of its important complementary role in the management of security in the country amidst concerns that the new pay may not be viable and risks sending many firms into bankruptcy.
The Ministry of Labour had two years ago set the minimum wage for private security guards as Sh16,959 in the three cities of Nairobi, Kisumu, Mombasa and Nakuru.
Under the Labour Ministry’s guidelines, a security guard working in former municipalities was to earn a minimum of Sh15,722 while their counterparts in other areas were expected to earn Sh9,672.
Under the new pay, the guards will receive Sh18,994 as minimum pay, a house allowance of Sh2,849 and an overtime allowance of Sh8,156 totalling Sh30,000 per month.
The statutory deductions will be National Social Security Fund (Sh1,080), Social Health Insurance Fund (Sh825), Pay as You Earn (Sh1,229) and an affordable housing levy of (Sh450).
Under the new regulations, any employer violating the new regulations will be liable to a fine of Sh2 million.
According to Section 9 (q) of the Act, which mandates the Authority to set standards that ensure compliance with minimum wage requirements, all private security companies must sign and submit to [email protected] a copy of the attached Legal Commitment to pay the Government to set a minimum wage for private security guards as stipulated in the law.
In November last year, North Rift Security Firms moved to court protesting the new salary announced by PSRA and stopped the move pending a hearing and determination of the matter.
The association later withdrew the case and the file was closed paving the way for the new move by the PSRA.