KK Security To Lay Off 1,000 Employees Amid Tough Economic Challenges

KK Security Limited is set to lay off approximately 1,000 employees across all cadres in Kenya amid tough Economic challenges.

In an internal memo addressed to staff, Kenya Kazi Services Limited and Kenya Kazi Limited cited the rising cost of operations, recent legislative changes, and increased minimum wage requirements as key factors necessitating the redundancy process.

“Due to harsh economic times, loss of business from various clients, and operational requirements, the company has decided to undertake a redundancy/restructuring exercise which will lead to termination of employment on account of redundancy,” the memo stated.

The process which commence at the end of January 2025 and is expected to conclude in May 2025 in a phased manner is to minimize disruption to the business and affected employees.

The security services industry in Kenya remains highly competitive, with 799 registered companies, including major players such as G4S, Wells Fargo Limited, BM Security, and Total Security Surveillance Limited.

KK Security, which operates under GardaWorld Limited, has faced financial strain, with analysts warning that higher costs could impact its credit rating.

The planned layoffs come just weeks after the Competition Authority of Kenya (CAK) approved the acquisition of KK Security by its Chief Executive, Stephan Cretier, making him the sole owner.

Cretier, who also serves as CEO of GardaWorld, is expected to use the acquisition to attract new investors and strategically position the company for growth.

The CAK noted that the acquisition would not alter the competitive landscape of the security industry.

“Post-transaction, Mr. Cretier will gain control of the target, changing its ownership from joint to sole control,” CAK said in a statement.

During a town hall meeting on January 24, employees were briefed on the redundancy process and given the opportunity to raise concerns.

The company pledged to continue consultations and explore alternative approaches to minimize the effects of job losses.

“Every measure shall be taken to ensure a smooth transition and compliance with the laws governing redundancy,” the memo assured.

Despite the company’s assurances, the looming job cuts raise concerns over the fate of affected employees in an already challenging job market.

The redundancy process will be conducted in accordance with Section 40 of the Employment Act 2007 and relevant Collective Bargaining Agreements (CBAs).