Private security companies warn of 20,000 job losses after 9 licences revoked

Kenya's security industry faces imminent mass job cuts following the government's decision to revoke the operating licenses of nine private security companies, citing non-compliance with operational guidelines.

In a joint statement on Tuesday, the Protective and Safety Association of Kenya (PROSAK) and the Protective Security Industry Association (PSIA) cautioned that over 20,000 private security guards are at risk of losing their jobs owing to the move.

The agencies further alleged that the nine companies underwent a rigorous vetting process and were granted five-year operating licenses.

"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," read the statement.

"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 into a spike of suicides, depression and chronic illness. The net result is a more turbulent time for Kenyans who are already facing a harsh economic time."

While accusing the State of targeting security firms owned by the associations' top brass, the agencies further rejected claims that other security companies could promptly replace those whose licenses were revoked, citing that procurement processes for security providers typically span several weeks.

They also intimated that the licence revocations could have been due to their stand against a recent directive by the Private Security Regulatory Authority (PSRA) for guards to be paid a minimum gross salary of Ksh.30,000 per month.

They argued that the move would have been too expensive for clients to afford as costs would have gone higher, thereby leading to losses of between 500,000-700,000 jobs.

The associations further rejected claims that other security companies could promptly replace those whose licenses were revoked, citing that procurement processes for security providers typically span several weeks.

"What is surprising to many is that it seem that only association leaders 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," the statement added.

"Diplomatic channels have been opened to try to resolve the existing stalemate while maintaining peace and stability across the nation. We encourage Kenyans to remain calm and positive as the matter is resolved in an amicable manner."

In a gazette notice dated January 5, 2024,  PSRA CEO Fazul Mahamed stated that the blacklisted companies have breached four regulations as guided in the Private Security Regulation Act No. 13 of 2016.

Mahamed noted that they also violated the terms and conditions attached to their certificates of registration as corporate private security service providers.

The nine were:

2. Victory Consultants Limited 

3. Bedrock Security Services Limited 

4. Bedrock Security Alarms Systems and Product Limited 

5. Senaca East Africa Limited 

6. Hipora Security Solutions Limited 

7. Salama Fikira International (Kenya) Limited 

8. Marco Security Limited 

9. Superb Marketing Solutions Limited