The government has been warned of 700,000 job cuts should the Ksh35,000 minimum wage directive for private security officers be effected.
In a joint statement released by the Protective Security Industry Association (PSIA) and Protective and Safety Association of Kenya (PROSAK), most security companies will be forced to lay off half their staff to cushion themselves from the hiked costs of employment.
The group called on the government to engage stakeholders to resolve the issue which led to a fallout between the Ministries of Interior and Labour. The latter opposed the directive to issue pay raises to security guards.
According to the associations, the Private Security Regulatory Authority (PSRA), under the Ministry of Interior, overstepped its mandate by setting the minimum wage at Ksh35,000.
They argued that the Ministry of Labour is the government office responsible for issuing such directives.
"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.
"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 of suicides, depression and chronic illness. The net result is a more turbulent time for Kenyans who are already facing a harsh economic time," read the statement in part.
According to data by the government, close to 1.3 million Kenyans are employed as private security guards.
In the meantime, the implementation of the Ksh35,000 minimum wage was put on hold following the stalemate between the Ministry of Labour and the Private Security Regulatory Authority (PSRA).
According to PSRA, its directive to raise the minimum wage for security guards was informed by a court decision rendered in Eldoret on January 17.
However, days after PSRA issued the directive, Labour CS Florence Bore stated that her ministry, which is mandated with setting the pay rise, was unaware of the same.
She noted that more consultations would be held before her ministry gives a way forward over the matter which was sub judice.
"This matter is currently active before the Employment and Labour Relations Court at Nairobi under Judicial Review Application No. E043 of 2023. We are confident the court will render a just and fair verdict.
“In order to comprehensively address the issues of concern and interest to workers and employers in the sector, we require an integrated and all-inclusive approach, bringing together key actors to look at the issue," the CS stated.
Meanwhile, 20,000 security officers were rendered jobless after the government deregistered nine security companies over allegations of tax evasion amounting to Ksh14 billion.
