- KK Security Limited plans to lay off about 1,000 employees in Kenya.
- Rising operational costs, legal changes, and increased minimum wage cited as reasons.
- Redundancies to begin in January 2025 and conclude by May 2025.
- The layoffs follow KK Security’s acquisition by CEO Stephan Cretier.
- The company pledges compliance with labor laws to ensure a smooth transition.
KK Security Limited, a subsidiary of GardaWorld, has announced plans to lay off approximately 1,000 employees across various roles in Kenya due to economic challenges.
In an internal memo, the company cited increasing operational costs, changes in legislation, and higher minimum wage requirements as key reasons for the decision.
“Due to the tough economic climate, loss of clients, and operational adjustments, the company has opted to carry out a redundancy and restructuring process, which will lead to job terminations,” the memo stated.
The redundancy process will begin at the end of January 2025 and is expected to continue through May 2025.
Industry Pressures and Recent Acquisition
Kenya’s security services sector is highly competitive, with 799 registered firms, including G4S, Wells Fargo Limited, BM Security, and Total Security Surveillance Limited.
KK Security’s financial struggles have intensified following the approval of its acquisition by CEO Stephan Cretier, who now holds sole ownership. The move is expected to help attract investors and reposition the company for future growth.
The Competition Authority of Kenya (CAK) clarified that the acquisition does not affect market competition.
“Following the transaction, Mr. Cretier will assume full control of the company, transitioning from joint to sole ownership,” stated CAK.
Employee Concerns and Legal Compliance
During a town hall meeting on January 24, employees were informed about the redundancy process and allowed to voice their concerns. The company assured staff that it would explore mitigation measures.
“We will take every necessary step to ensure a smooth transition and comply with all laws related to redundancy,” the memo added.
The layoffs will follow Section 40 of the Employment Act of 2007 and any relevant Collective Bargaining Agreements (CBAs). However, concerns remain about the future of affected employees in an already difficult job market.
