Regulator pleads for state intervention as G4S plans to sack 400 workers
By Maureen Kinyanjui |
The company cited a reduction in business and high operating costs as key reasons behind the decision.
The Private Security Regulatory Authority (PSRA) has called for urgent government intervention after security firm G4S announced plans to lay off 400 employees due to ongoing economic challenges.
The PSRA has urged the Ministry of Labour and workers' unions to take action to prevent massive job losses, warning that such a move would leave many Kenyan families without a source of income.
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In a statement released on Wednesday, the authority expressed concern over the impact of G4S's redundancy notice, which it believes could leave workers vulnerable and without proper compensation.
"And just like that, over 400 Kenyan families will be left without a source of income and without adequate compensation to cushion them. Where is the union of Andabwa, Soita, etc, and the Ministry of Labour? Or does their job end at the collection of monthly union fees? This is unfair and unacceptable," the authority said.
G4S Kenya, which has been operating in the country since 1969, issued a redundancy notice on November 4, 2024, stating that it would lay off employees across various locations in Kenya.
The company cited a reduction in business and high operating costs as key reasons behind the decision.
In a letter to the Ministry of Labour, G4S explained that the ongoing harsh economic conditions had severely impacted its business, resulting in reduced revenue and escalating costs of operation.
"Due to the ongoing reduction in business trading occasioned by the effects of the harsh economic challenges that have led to reduced revenue and high costs of running our business, we regret to advise the Ministry of Labour and Social Protection of the organisation's intentions to declare several positions redundant," the company said in the redundancy notice.
The affected employees will be from both management and unionised categories, with the redundancy expected to occur gradually between November 2024 and April 2025.
G4S assured the Ministry of Labour that it would adhere to the legal requirements stipulated in the Employment Act, 2007, as part of the redundancy process.
"This letter therefore serves as a notice of redundancy pursuant to the provision of the Employment Act, 2007 Section 40 (1). The notice takes effect from November 4, 2024."
Despite the redundancies, G4S noted its commitment to the Kenyan market, stating that it would continue to seek solutions to secure employment while ensuring the sustainability of its business operations.
"G4S Kenya Limited remains fully committed to the Kenyan market. We have every intention of implementing solutions that will secure employment for our employees whilst sustaining positive business performance," the company said.
The announcement comes amid a challenging economic climate in Kenya, where many businesses are grappling with reduced revenues and rising costs.
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