The cancellation of the operating licences of nine private security companies puts on the line more than 20,000 jobs in the sector.
The Professional Security and Safety Association of Kenya and the Protective Security Industry Association have warned.
On February 5, 2024, the Private Security Regulatory Authority (PSRA) issued a legal notice cancelling the licences of the nine companies.
The companies had previously passed through stringent vetting procedures and been issued with five-year operating licences apart from three whose applications were being processed.
The action comes in the wake of court battles and protests by security associations who were not in agreement with an earlier PSRA notice calling for a new minimum wage of Sh30,000 per guard, which was later disowned by Labour Cabinet Secretary Florence Bore.
The associations felt this would not be affordable to clients whose costs would then rise to Sh45,000 per day guard and Sh55,000 per night guard (due to overtime, taxes and operational costs).
They argued this is a factor which most Kenyans would not be able to afford (churches, schools, hospitals and commercial institutions) and would be severely exposed and at risk thus affecting existing contracts which are being paid at much lower rates including through existing tendered contracts by government institutions.
“If the new minimum wage is implemented in its current form and with the current economic situation, it would lead to losses of between 500,000 and 700,000 jobs in the sector,” the group said.
“The massive churn and industry upheaval is likely to lead to a rampant increase in crime, theft, burglaries and robberies due to the sudden lack of manned physical security at premises across the country and as those now unemployed but having families to feed are forced to find ways to survive.”
They argued additional impact may be experienced in the health sector as those now without hope for a future paycheck fall into mental health issues that could lead to a spike in suicides, depression and chronic illness.
“Assumptions that other security companies will take up the slack are erroneous as for most organisations and institutions including resident associations the turnaround time for a new security provider is guided by a strict procurement process which takes weeks if not months for new appointments and contract signing.”
The group added the net result is a more turbulent time for Kenyans who are already facing a harsh economic time as the government brings the hatchet down on some of the leading security companies.
The group claimed that only association leaders and companies have been targeted in the big chop.
“The specific targeting of association leaders through a public office for not toeing an unknown agenda is an unwanted and unwelcome development," they said in a statement.
“Diplomatic channels have been opened to try to resolve the existing stalemate while maintaining peace and stability across the nation,” they said in a statement.
“We encourage Kenyans to remain calm and positive as the matter is resolved in an amicable manner.”