PSRA Ordered To Reinstate Licences of Nine Private Security Firms
PSRA had revoked licences of the nine private securities companies for allegedly failing to comply with minimum wage requirements among other breaches.
At the same time, the Appeals Committee quashed Legal Notice NO. PSRA/001/2024 issued by the regulator.
“The appeals by the nine (9) companies be and hereby allowed,” reads the order, further barring the 9 firms from filing any law suits for damages in respect to the suspension of the licences by PSRA.
Similarly, the Appeals Committee also directed all parties to withdraw any case pending in court regarding the matter.
The nine firms are Senaca East Africa Limited, Superb Marketing Solutions Limited, Salama Fikira International (Kenya) Limited, Hipora Security Solutions Limited, and Bedrock Security Alarms Systems and Product Limited.
Others are Victory Protective Services Africa Limited, Victory Consultants Limited, Bedrock Security Services Limited and Marco Security Limited.
“Pursuant to Sections 10 (c), 31 (b) and 32 of the Private Security Regulation Act No. 13 of 2016, the Authority hereby notifies users, prospective users, representatives of users of private security services and the general public that it has with immediate effect cancelled the certificates of registration and licences of the private security companies listed in the schedule hereto,” said PSRA chief executive Fazul Mahamed in a notice issued in February 2024, suspending the licences and operations of the firms.
Then, PSRA said that the security companies “failed, declined and/or refused to comply with minimum wage regulations” and contravened Section 33 of the Act by having hired guards who are not registered.
The Appeals Committee also directed PSRA to cease further communications to the appellants and/or their clientele regarding the matter.
PSRA in January 2024 gave private security firms seven days to commit themselves to paying the minimum wage of KSh30,000 and KSh27,183 for those operating in Nairobi and outside Nairobi, respectively.
However, the Appeals Committee observed that the decision by PSRA regarding the minimum wage hike for guards was null and void.
“The Legal Notice NO. PSRA/001/2024/ dated February 5, 2024, is hereby lifted and the cancelled certificate of registration are reinstated,” reads the ruling by the Appeals Committee.
Subsequently, the Committee directed PSRA to immediately ensure reinstatement and/or issuance of the licences for the provision of security services to the nine companies.
PSRA gazetted the names of the companies highlighting their failures in a notice, which tremendously affected their operations at large given they have employed thousands of people and are in business.
This followed a seven-day notice to the firms to comply with a directive to increase the guard's salary to at least KSh30,000 lapsed on February 6, 2024.
The grounds listed as being behind the move include allegations that they have breached the provisions of the Private Security Regulation Act No. 13 of 2016, they violated the terms and conditions attached to their certificates of registration as corporate private security service providers and failed, declined and/or refused to comply with minimum wage regulations.
They also allegedly contravened Section 33 of the Act having employed and/or engaged Private Security Officers who do not have Guard Force Numbers as proof of registration by the Authority in accordance with the provisions of the Act.
Employment and Labour Relations court judge Mathews Nduma Nderi, however, issued a temporary order stopping the implementation of the salary increment. The judge said that the Authority lacks the powers to set a minimum wage for security guards as this duty is reserved for the wages council as provided by the Labour Institutions Act.
Immediately after PSRA’s cancellation of the licences, in a joint press statement, the Kenya Security Industry Association (KSIA) and Protective and Safety Association of Kenya (PROSAK) said the PSRA Director General Fazul Mahamed’s order for salary increment was illegal.
According to the lobbies, this directive should be gazetted by Labour Cabinet Secretary Florence Bore before it is enforced.
“Accordingly, only the Cabinet Secretary for Labour and Social Protection is empowered by law to publish wage orders setting out minimum terms of conditions of employment and only through the Kenya Gazette,” the lobby groups said.
Bore disowned the directive arguing that her ministry cannot validate the pay raise directive issued by PRSA pending the hearing and determination of a case currently in the Employment and Labour Relations Court in Nairobi.
She maintained that the applicable minimum wage remains operational.
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