Private security companies have vowed to fight the government’s minimum wage directive and cancellation of operating licences for some companies.

According to the Protective and Safety Association of Kenya (PROSAK) and the Protective Security Industry Association (PSIA), the directives by the government pose a significant threat to the survival of many private security companies in the country.

This comes days after the government directed security firms to commit to paying private security guards a minimum wage of Ksh30,000 or risk losing licences.

Private security companies’ licences cancelled

On February 6, 2024, the Private Security Regulatory Authority (PSRA)revoked the licences of nine firms, which were deemed non-compliant.

The firms include Senaca East Africa Limited, Superb Marketing Solutions Limited, Salama Fikira International (Kenya) Limited, Hipora Security Solutions Limited and Bedrock Security Alarms Systems and Product Limited.

Others are Victory Protective Services Africa Limited, Victory Consultants Limited, Bedrock Security Services Limited and Marco Security Limited.

“The Protective and Safety Association of Kenya (PROSAK) and the Protective Security Industry Association (PSIA) are committed to using constitutional and legal avenues to challenge illegal pronouncements by the Private Security Regulatory Authority led by Fazul Mahamed. The associations will continue to seek legal avenues to stop the PSRA’s minimum wage bill and illegal license cancellations, which poses a significant threat to the survival of many private security companies in the country,” the organisations said in a statement.

The two organisations have accused PSRA of overstepping its mandate, by issuing wage directives which should come from the Ministry of Labour.

“We would like to clarify that the Ministry of Labour, and not the PSRA, is responsible for adjusting wages. Any adjustments in wages must be gazetted by Labour CS Florence Bore, as stipulated under the Employment Act No 11 of 2007. CS Bore has already disowned the PSRA’s illegal directive that requires private security firms to pay their guards a minimum salary of Sh30,000. The Ministry of Labour last amended wage adjustments in 2022 via Gazette Notice No 125,” they added.

They further allege that the cancellation of licenses for some private security firms was done without following the proper procedures.

“Three of our members have already filed appeals with the Cabinet Secretary of Interior and Administration of National Government, and we will continue to seek legal redress to clear these issues that hinder the growth and development of the profession in a difficult economic environment,” the statement added.

“While we agree that security guards deserve better pay, the current economic circumstances make it neither practical nor possible. Achieving this objective requires collaboration and sober input from all stakeholders to find a middle ground. Only a few companies can afford to pay higher salaries based on the financial muscle of their clients who are paying premium rates for specialized services, while many have been forced to either reduce their operations, lay off staff, and, in some cases, close down due to the weakened economy and increased taxes.”

PROSAK and PSIA say that the “punitive laws” will lead to security companies laying off up to half of their workforce to survive.

According to the latest Central Bank of Kenya Survey, the private sector plans to lay off 15% of its employees in 2024, which amounts to over 300,000 workers.