MST-Department of Economic Theory

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Technical Efficiency of Private Security Firms in Kenya
(Kenyatta University, 2025-03) Kimulwo, Felix Kiprop
The technical efficiency of the private security company (PSCs) in Kenya has become a critical issue, keeping in view the vast ratio of 1 officer to 1,150 citizens in the country's police force as opposed to the very ideal 1:450 ratio. The demand for security services is rising, and the government cannot meet the ever-increasing need; hence, private security firms come to fill the gap. However, these firms suffer challenges such as high employee turnover, low wages, no career path, insufficient training, and the application of obsolete technology. Using data envelopment analysis (DEA), this study on 34 private security firms found an average efficiency of twenty six percent suggesting that many PSCs operate way below their capacity. Years in operation and ownership negatively influence efficiency, while the number of locations and compliance with regulations positively influence performance. This study finds improved regulatory frameworks, regular audits, and government legislation whereby only firms with valid PSRA licensure qualify to bid on government-related contracts to ease technical efficiency improvements among PSCs.