Utilisation And Effectiveness Of Outsourced Private Security Services By Commercial Banks In Kenya

Abstract

The purpose of this study was to analyze the utilisation and effectiveness of outsourced private security services with special reference to commercial banks operating in Nairobi County, Kenya. Nairobi was chosen as a study area because it houses all the commercial banks operating within it and all subsidiaries across the country. This study was guided by both the general and specific objectives which included the vendor factors, technology adoption, vendor relationship management, and government regulations on outsourcing and utilisation of private security services. Additionally, the study relied on the routine activity theory which and besides other criminal theories, contends that the probability of a crime depending on the presence of wrong doers, appropriate targets and absence of credible guardians within the specific banks. The nature of the study depended on descriptive research design which is a scientific method utilised in observing the behavior pattern in a situation. The target population was all the 40 licensed commercial banks in Kenya operating in Nairobi County. The study had a total population of 240 employees of which a sample of 150 respondents was sampled using the Yamane (1967) sampling formulae that provides a simplified formula to calculate sample size in a given population. A semi-structured questionnaire was used in collecting the primary data which was analyzed using descriptive research design, a method utilised in observing behavior, by applying the Social Package for Social Science Version 23. Qualitative data from the open ended questions was analyzed using content analyses and responses presented in prose form. The study used a bivariant regression to evaluate the elements of utilisation and effectiveness of private security services outsourced by commercial banks. The results of the study reveal that the utilisation of vendor factors, relationship management and technology adoption had great impact security services pertaining banks. Additionally, study results show that government regulations that emanate from outsourced private security services had a positive and significant effect on utilisation and effectiveness of private security services by commercial banks. The study recommended that commercial banks should consider the vendor’s cyber security capabilities and their system designs so as to be well versed with what is treading in the market. Secondly they should always consider integrating their surveillance systems with alarm systems within the specific bank for the reason that there it is an alternative way to enhance response in case of intrusion. Thirdly, the utilized security companies should have a good relationship with other security stakeholders in the industry and should adopt a competitive pay for the guards manning their respective institutions because PSC can respond easily together in case backup is needed. The study further recommended that the Kenya government should fast-track the utilisation of private security regulations in order to enhance the quality and standard of private security services provided to any institution.