Challenges of Outsourced Private Security Services to Commercial Banks in Nairobi, Kenya

Abstract

This study sought to establish the challenges of outsourced private security services to commercial banks in Nairobi, Kenya. The study employed descriptive research design that portrayed an accurate profile of the situation. The population of this study was all the 48 commercial banks in Kenya and more specifically their head offices which are located in the capital city Nairobi. Total populations of 720 security officials were involved in this study. A sample of 257 respondents was picked from all the commercial banks in Kenya by the adoption of a mathematical formula:  where, N is the total number of security officials targeted by the researcher, and e is the error or confidence level. The conventional confidence level of 95% was used to ensure a more accurate result from the sample. This included the security managers in the banks, security guards working in the bank and bank employees involved with security issues. A Questionnaire was used to collect the primary data. The open-ended questions were used by the researcher to collect qualitative data and the closed ended helped to collect the quantitative data. Descriptive statistics such as means, standard deviation and frequency distribution were used to analyze the data. The study would provide deeper knowledge to the banking security officials, the private security managers and respective bank employees in providing security in the banking sector and attempt to mitigate some of the shortcomings in the operations of the private security services outsourced to provide security serviced to commercial banks in Nairobi, Kenya. This study concluded that without proper control to address risks, the banks would not attain their objectives. The study also concluded that there is no legislative act that regulates the private security sector and this has been a critical component in the way the sector operates. In order to derive maximum benefits and protect their customers effectively, banks must approach outsourcing from a broader, multi-dimensional perspective and ensure that all their decisions, from what to outsource and to whom to outsource from are aligned with the banks objectives as well as the outlined security policy and standards championed by Kenya Bankers Association, KBA. Banks must understand the potential private security providers' services before entering into any partnership. Ideally, the partnership must have strategic vision, clear focus, and the willingness to invest in new technology and innovation, better remuneration package for the employees among others in the interest of the partnership. All banks, through KBA, should come up with standards and guidelines that are to be taken into consideration before engaging these private security companies.