Competition hots up as firms cash in on G4S woes

The recent thefts of money in transit under G4S care have opened up the cash-in-transit business to intense competition.

Rivals are resorting to technology and fleet expansion to snatch business from the firm.

Main players Bob Morgan Services (BM), Wells Fargo and KK Security have started to eat into the 75 per cent market share held by G4S.

On Tuesday, KK Security that is a year-old in cash-in-transit business (CIT) announced a new business model that relies heavily on technology to assure clients of the safety of their money.

The company unveiled real-time tracking of CIT vehicles using satellite technology and plans to introduce a smoke box that defaces currency in case of tampering.

Vehicles that divert from the programmed routes will prompt an alert to the control system that triggers and alarm system.

KK Security said new business has started flowing in as a result of the use of technology and forecast growing its CIT business from the current overall market share of three per cent in Kenya to 15 per cent by the end of the year.

“We project this growth because of the good number of contracts we have signed with local banks in the last two years,” said Noel Grier, of KK Security.

The company announced creation of KK Lodgit Limited, a joint venture with European-based Integrated Risk Management Services (I-RMS) to handle its CIT business.

G4S’s 75 per cent market share was shaken by regular theft of money by members of its staff, a factor that has led to the realignment of the industry.

The latest robbery involved loss of Sh300 million, a shocking figure in the hands of people already classified as criminals by the police.

The theft led to the withdrawal of police escort by the government.G4S has also been summoned on Wednesday to explain to the industry body, the Kenya Security Industry Association, why it should not be suspended from doing CIT business in Kenya because of what was seen as negligence on its side, an industry player said.

CIT business contributed to 16 per cent of the company’s average revenues of Sh5.3 billion based on 2009 statistics.

But the company’s problems have aided their rivals, triggering a wave of business growth led by changing customer loyalty rather than growth of business.

Bob Morgan Services for example said its business had been growing in the last few months. It now controls about 15 per cent.