Guards set for strike, industry in ferment

The main market for private security services is commercial clients, while the residential market is relatively small, comprising, according Security Research and Information Centre, a Kenyan research firm, only 10.7 per cent of total business. Cash-in-transit and cash management is a growing and expanding part of the business, as more and more clients realise their vulnerability in an increasingly armed environment.

Vulnerability

Small companies quote a price of Sh6,500 to Sh8,000 per guard, a cheaper option compared, in some cases, to nearly Sh30,000 asked by mainstream players. Government contracts take the lowest bidder without checking whether it complies with labour regulations and other statutory requirements.

Given the high dependency ratios, it is estimated that the industry supports indirectly a total of 195,524 people and earns about Sh6 billion annually from crime protection services. The industry is hence slightly bigger than the police force, which earns about Sh4.6 billion every year in salaries. Many of the players are adapting new strategies to survive in the market where starting a security firm is akin to starting a grocery shop.

Following lobbying by the security industry, as well as increasing concern and pressure from clients in the business community, there is a draft Bill that has been the industry talk since 2004. It appears to be crafted largely on the model of the South Africa and UK legislation and seeks to establish a Private Security Industry Regulatory Authority, as well as a board to oversee it.