Start a security company in Kenya today, as it offers a promising business opportunity, but be aware that it is one of the most regulated sectors in the country. The Private Security Regulatory Authority (PSRA) requires every security firm and every officer to be registered, trained, and licensed before offering services. While this may feel like a lot of paperwork, the strict standards protect clients and help professional companies stand out from unlicensed operators. With rising demand for trained guards, CCTV monitoring, access-control systems, and corporate security services, entrepreneurs who take the time to set up legally can tap into a fast-growing market.
This guide explores the step-by-step process of registering your company, meeting PSRA requirements, and positioning your brand for high-value contracts.
Key Legal Frameworks Governing the Private Security Company in Kenya
Below are the key legal frameworks that security firms must comply with:
1. Private Security Regulation Act, 2016
This is the core legislation regulating the sector. It outlines:
• Mandatory licensing for companies and individual guards
• Training and competency requirements
• Regulations on uniforms, branding, and identification
• Rules on cooperation with national security agencies
• Obligations to uphold human rights and professional conduct
The Private Security Regulatory Authority (PSRA) also conducts background checks and maintains a national register of licensed providers.
2. Companies Act, 2015
Any private security company must be legally incorporated under this Act. It guides:
• Business name registration
• Shareholding structure
• Corporate governance and compliance filings
• Annual returns and record-keeping
Proper company registration is required before applying for PSRA licensing.
3. Data Protection Act, 2019
This Act is essential for firms that offer:
• CCTV installation and monitoring
• Alarm systems
• Access control systems
• Private investigations that involve personal data
Security companies must protect clients’ privacy, maintain secure data handling systems, and ensure that any surveillance complies with lawful purpose, consent, and confidentiality requirements.
4. Firearms Act (Cap. 114)
Companies that intend to provide armed guarding services must comply with this Act. Requirements include:
• Applying for firearm certificates
• Ensuring storage facilities meet safety standards
• Vetting and training for armed personnel
• Maintaining strict inventory and accountability systems
Only PSRA-licensed companies can apply for armed security authorization.
5. Labour Laws of Kenya
Private security firms must follow all labour regulations, including:
• Employment Act, 2007 – contracts, working conditions, disciplinary procedures
• Regulation of Wages (Security Services) Order – minimum wage for guards, overtime rules, and allowances
• Occupational Safety and Health Act (OSHA), 2007 – ensuring safety at work sites
• Work Injury Benefits Act (WIBA), 2007 – compensation for guard injuries
Guards must work under fair conditions and receive legally required benefits.
6. National Police Service Act & Coordination with Law Enforcement
Security companies must collaborate with national security agencies when necessary, especially in:
• Crime reporting
• Emergency response
• Handling incidents involving weapons or threats
This coordination helps maintain public safety and ensures security providers do not operate outside the law.
Steps to Start a Security Company in Kenya
This guide breaks down the process in a simple way to help you start your security company the right way.
1. Register Your Company
Start by creating a Private Limited Company (Ltd.) through the eCitizen portal. You will need:
• At least one director and one shareholder
• Kenyan or foreign ownership (local ownership often makes licensing smoother)
• A physical business address in Kenya
• KRA PIN, VAT registration, NSSF & SHA compliance
Timeline: Usually 7–10 working days.
2. Apply for the PSRA License
This is the most important license for any security firm in Kenya. You will apply through the Private Security Regulatory Authority (PSRA).
Documents you must submit:
• Certificate of incorporation
• ID/Passport copies of directors + Kenyan police clearance
• County business permit
• Inspection report for your office premises
• Employment contracts for security staff (if already hired)
• Company profile showing your services (manned guarding, alarms, CCTV, K9, etc.)
PSRA will conduct background checks, inspect your premises, and verify compliance before issuing a license. Operating without a PSRA license is illegal and attracts heavy penalties.
3. Get Firearm Handling Approval (Only if You Offer Armed Security)
If your company plans to provide armed guards, you must get permission through the Firearms Licensing Board (FLB).
Requirements include:
• Strict vetting for directors and staff
• Proof of training from recognized firearm training schools
• Monthly compliance reports to the Ministry of Interior
Important: Armed security permits are harder to obtain and often favor firms with Kenyan directors or prior military/security experience.
4. Meet Labour and Training Requirements
All security officers must:
• Be 18 years or older
• Have completed PSRA-approved training
• Be individually registered with PSRA
• Receive uniforms, insurance cover, and the right equipment
PSRA may conduct random checks to ensure your staff are trained, paid fairly, and working under lawful conditions.
5. Set Up Internal Compliance & Reporting Systems
Once licensed, your company must keep proper records and follow PSRA rules:
• Submit quarterly operational reports
• Maintain clients’ contracts, staff deployment schedules, and duty logs
• Respect Kenya’s Data Protection Act if using CCTV or electronic systems
• Cooperate with police and authorities when required
Failing to follow these standards can lead to license suspension or revocation.
Taxation and Incentives for Security Companies in Kenya
Foreigners looking to start a private security company in Kenya should be aware that the sector is subject to Kenya’s standard tax regime, with no special tax holidays or exemptions specifically for private security companies. However, they can benefit from the general business incentives and allowances available to all eligible companies.
Tax Obligations for Security Companies
• Corporate Income Tax: Resident security companies are generally taxed at a rate of 30%.
• Value Added Tax (VAT): Security services are taxable and fall under the standard VAT rate (currently 14%). They are neither zero-rated nor exempt.
• Withholding Tax: Payments such as dividends, interest, royalties, and management fees may attract withholding tax, depending on the recipient’s residency.
• Pay As You Earn (PAYE): Security companies must deduct and remit PAYE from employee salaries in accordance with Kenyan law.
General Business Incentives
Security firms can benefit from a variety of tax incentives available to all Kenyan businesses:
– Capital Allowances: Deductions can be claimed for machinery and equipment used in business operations.
– Wear and Tear Allowances: Assets such as light vehicles (25%), heavy vehicles (37.5%), and computers or photocopiers (30%) qualify for depreciation deductions.
– Industrial Building Deductions: Qualifying industrial buildings and structures may be eligible for tax relief.
– Investment Deductions: Despite changes under the Finance Act 2025, companies can still claim allowances on capital expenditures for buildings and machinery.
– Special Economic Zones (SEZs) and Export Processing Zones (EPZs): Firms operating within SEZs or EPZs may access benefits such as reduced corporate tax rates (10% for SEZs for the first 10 years), a 10-year tax holiday for EPZs, and customs and VAT exemptions on imported inputs. Security companies providing services to enterprises within these zones can also benefit.
– Nairobi International Financial Centre (NIFC): Companies certified by NIFC may enjoy a reduced corporate tax rate of 15% for the first 10 years, provided they meet investment and local employment criteria.
Types of security services you can offer in Kenya
The industry is diverse, offering several opportunities such as:
1. Manned guarding
2. Cash-in-transit services
3. Alarm response and monitoring
4. CCTV installation and monitoring
5. VIP protection
6. Event security
7. K9 unit services
8. Security consultancy
Why Start a Security Company in Kenya?
• High demand for trained guards
• Government support & regulation through PSRA
• Opportunity to serve high-end clients
• Scalable business model
• Recurring monthly revenue from contracts
If you deliver professionalism and compliance, growing a security firm becomes easier.
Conclusion
Starting a security company in Kenya can be a highly profitable business when done correctly. With proper compliance, trained staff, high-quality equipment, and strong marketing, you can build a reputable, trusted security firm. Follow the legal procedures, invest in professionalism, and continuously improve your operations to stay ahead in this competitive industry.
Let Afrisetup assist you in registering your security company in Kenya today.