Private security firms ordered to implement Sh 30000 minimum wage or may face fines, penalties, and even the revocation of their business licences in the next 7 days.
The Private Security Regulatory Authority (PSRA) has issued a notice giving private security businesses seven days to agree to paying their guards the officially published salary.
The directors of all private security firms are required by the authorities to sign a legally binding document pledging to pay a basic minimum salary of Sh30,000 to guards working inside the Nairobi metropolitan region and Sh27,183 to guards working outside of the area.
The board of directors must provide a copy of the most recent pay stub for each of its security guards as proof of the same.
In the event that they do not meet the requirements of the agreement, they may face fines, penalties, and even the revocation of their business licences.
The authority said that a statutory review of a private security company’s registration and licencing status will be conducted in line with Section 32 of the Act if the company does not provide a signed copy of the legal obligation within the next 7 days.
Businesses will be unable to conceal their guard force numbers as the relevant authorities want the same list for guard force number registration and processing.
Concerns that the new pay may not be profitable and lead many enterprises into bankruptcy prompted the government to move towards regulation of the sector, which plays a complementary function in the country’s security management.
The Ministry of Labour in Nairobi, Kisumu, Mombasa, and Nakuru established a minimum pay of sh16,959 for private security guards in those cities two years ago.
Security guards in former municipalities were required by the Labour Ministry to earn a minimum of sh15,722 per month, while their colleagues in other places were supposed to earn sh9,672.
North Rift Security Firms took PSRA to court in November of last year over their newly announced compensation increases, and the judge froze the raises until a hearing could be held and the case could be decided.
The matter was subsequently closed when the association discontinued its involvement.
A total of Sh30,000 (including the home allowance of Sh2,849.11 and the overtime allowance of Sh8,156.81) would be paid to the guards each month under the new pay system. The minimum wage is Sh18,994.
Sh1,080 for the National Social Security Fund, Sh825 for the Social Health Insurance Fund, Sh1,229 for Pay as You Earn, and Sh450 for an affordable housing tax are the mandatory deductions.
A punishment of Sh2 million will be imposed on any employer found to have violated the new restrictions.
All private security companies are required to sign and send a copy of the attached legal commitment to the government in order to pay the minimum wage for private security guards as stated in Legal Notice PSRA/005/2023. This is in accordance with Section 9(q) of the Act, which requires the Authority to establish guidelines in order to guarantee that companies comply with the minimum wage specifications.