Kenya private security sector decry high tax regime

The Protective Security lobby group of Kenya has welcomed the annulment of The Private Security (General) Regulations, 2019 that required all service providers be inspected, vetted and licensed by the regulator by January 1 or close shop.

Regulations introduced by interior cabinet secretary Fred Matiang’i which operationalised the Private Security Regulation Act 2016 and the Private Security Regulatory Authority (PSRA) also dictated salaries to be paid to employees in the sector on top of retraining by January.
In a statement, Protective Security Industry Association (PSIA), body that represents all local security firms said the implementation of orders in the regulation was expensive and with unrealistic timelines. According to the association’s chairman Cosmas Mutava, security service providers in Kenya have an estimated workforce of 500,000 to 600,000 – a number that requires huge resources to retrain.

He added that the sector is already squeezed financially due to high tax regime and delayed payments, with some clients taking up to 120 days to pay. The lobby now wants Kenya Revenue Authority to allow its members to be paying Value Added Tax after clients have made payment as opposed to the current situation where they are even forced to borrow to pay taxes.