Kenya Kazi Services Limited has announced plans to lay off approximately 1,000 employees in a redundancy exercise attributed to economic downturns, loss of business, and rising operational costs.

The security firm, which operates under KK Security, stated that the process would commence at the end of January and continue until May 2025.

In a memo addressed to all staff, the Head of HR cited recent legislative changes, including the increase in minimum wage, as factors necessitating the job cuts.

"We wish to notify you that Kenya Kazi Services Limited and Kenya Kazi Limited; due to harsh economic times, loss of business from various clients and operational requirements, has decided to undertake a redundancy/restructuring exercise which will lead to termination of employment on account of redundancy," the memo read.

"The loss of business is attributable to direct and indirect cost of business including but not limited to the recent legislative changes and specifically on the minimum wage which necessitated an increase in the cost of our services.”

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The company, a major player in the private security sector, indicated that the restructuring would affect employees in various locations and across all job cadres.

It further stated that the move aims to enhance sustainability amid a challenging business environment.

“The restructuring/redundancy program will necessitate changes to our business operations, structure and processes in a bid to ensure sustainability of the Company in a tough operating environment. The Company shall review its business model across all its service lines with a view to mitigate the risk of loss. This may render roles redundant and may result in job losses.”

KK Security assured employees that the layoffs would follow due process in compliance with Section 40 of the Employment Act 2007 and the relevant Collective Bargaining Agreements (CBAs).

"We hereby give you this notice of intended redundancy in accordance with Section 40 of the Employment Act 2007 read together with our contract of employment and provisions of relevant Collective Bargaining Agreements (CBAs). During the process, every measure shall be taken to ensure a smooth transition and compliance with the Laws governing the process of redundancy," the memo read in part.

In an effort to address employees’ concerns, the company organised a town hall meeting, where staff were given an opportunity to seek clarification on the impending layoffs.

“The Company did set up a town hall meeting, where you were all invited to briefly discuss the process window to understand and give you the opportunity to raise any questions you may have and identify ways to explore alternative approaches in the intended redundancy and/or the possibilities of limiting the effects of the proposed redundancy.”

The redundancy plan underscores the financial strain facing businesses in Kenya, particularly in the security sector, as firms grapple with rising operational costs and dwindling revenues.