KK Security to lay off 1,000 workers in mass redundancy, cites tough business environment

Approximately 1,000 employees across all cadres of the Kenya Kazi Services Limited, better known as KK Security, will be rendered jobless in a planned redundancy plan the company has initiated due to financial challenges, loss of business, and increased operational costs, particularly following recent legislative changes affecting minimum wages.

In an internal communication to staff, the company has also cited the need for restructuring to sustain operations, with redundancies expected to take place in phases from the end of January to May this year.

“We hereby give you notice of intended redundancy to approximately 1000 employees based in various locations in Kenya and who work across all cadres per section 40 of the Employment Act 2007 read together with your contract of employment and provisions of relevant Collective Bargaining Authority (CBA),” it said.

The security company stated that before the letters were written to the employees, they held a meeting with all their staff and discussed the process as they allowed them to ask questions too.

According to the management of KK security, they’ll ensure appropriate consultations are made to reduce the impact of the redundancy even as they develop appropriate criteria to manage the same.

“Harsh economic times have led to our various clients losing business and operational requirements have led to the oncoming redundancy,” the management explained.

“The recent legislative which necessitated the increase in wages increased the cost of services has also affected the same,” they added.

This comes as last year May, the Private Security Regulatory Authority (PSRA) issued a notice to all private security firms to pay guards operating within Nairobi, a basic minimum wage of Sh30, 000 and Sh27,183 for those operating outside the Nairobi metropolitan area.

This was a move by the government to regulate the sector and recognition of their important complimentary

Under the new pay, the guards will receive sh18,994 as minimum pay, a house allowance of Sh2,849.11, and an overtime allowance of Sh8,156.81 totaling Sh30,000 per month.

The statutory deductions will be National Social Security Fund (Ksh 1,080), Social Health Insurance Fund ( Ksh 825), Pay as You Earn (Ksh 1,229), and an affordable housing levy (Ksh 450).

Under the new regulations, any employer violating the new regulations will be liable to a fine of Ksh 2 million.

Based in Nairobi, Kenya, and with additional offices in Tanzania, Uganda, Rwanda, Burundi, Malawi, and the Democratic Republic of Congo, KK Security has over 25,000 staff to provide security products and services across East Africa.

It is, however, not clear what the staff establishment the company in Kenya is and how many will be spared the axe.