G4S bets on bullet proof vehicles in war on cash robberies

Security services company G4S has increased its fleet of bullet-resistant vehicles used to transport cash, hoping to reclaim its market dominance lost after a series of robberies involving some of its employees.

The company said on Monday it had fitted more vehicles with bullet-resistant material and real-time satellite tracking systems but did not specify the number of vehicles included.

About Sh500 million has been stolen on transit in robberies made easy by the lack of vehicle tracking systems.

The technology — armoured vehicle combined with satellite tracking and enhanced cash box — is not new, having been introduced by KK Lodgit a year ago.

G4S communications office said the new vehicles had “added layers of security” that will make it impossible for employees, who have been blamed for the robberies, to collude with outsiders to steal.

The expansion of the Cash-in-Transit (CIT) unit is also meant to help G4S meet the high demand for cash transport services expected when agency banks start operating.

The company declined to reveal its total fleet.

“This prototype is the product of G4S best practice taken out of lessons from the 70 countries in the world where we operate Cash-in-Transit (CIT) businesses,” said Mr Adam Miller, the regional managing director for East Africa.

The new fleet comes at a time when the fight for CIT market in Kenya has intensified with companies such as KK Lodgit and BM Security Services increasing their investment in the business category.

The intensity to secure a higher market share was partly triggered by the withdrawal of some of G4S clients as a result of the robberies and because of the increasing demand for services from the expanding financial sector.

KK Lodgit early this year announced a review of its nascent CIT business and adopted a new business model that relies heavily on real-time tracking of vehicles using satellite technology.

It also announced plans to introduce a smoke box that defaces currency when tampered with.

The review is intended to grow its market share to 15 per cent this year from three in December 2009, said the firm’s Noel Grier in an earlier interview.

Bob Morgan (BM) Services also said its business had been growing in the months leading to the first quarter of this year.

By March this year, the company controlled 15 per cent of the CIT market and forecast that its market share could reach 20 per cent by end of the year.

Growth would also be driven by demand for cash by agency bankers especially in the rural areas where there is no mainstream banking.

BM said it has increased its CIT fleet from 31 to 36 vehicles to meet the expected demand.

“We are preparing for more trips for our cash in transit vehicles and movement into rural areas,” said Mr Richard Ndege, the sales and marketing manager.

Agency banking is expected to see banking services penetrate areas where commercial banks have not reached.

This means cash-in-transit vehicles will be required to travel to remote areas to pick up and drop money from agents.

The companies said they were investing in armoured vehicles to protect employees in case of ambush by gangsters.

BM said it had increased its insurance cover per vehicle, to enable a single one to carry a maximum limit of Sh100 million from the previous Sh50 million.

“We are replacing our fleet to make the cash-in-transit vehicles intelligent,” said Mr Miller during a media interview in May.

KK Lodgit also said it expected demand for its services to increase.

“Kenya is a cash business society and we expect that to increase when the agency banks start operating. Demand for cash is going to be high,” said Terry Downes, the CEO of KK Lodgit.

Industry players however maintained that the use of cash defacing box would be the ultimate answer to securing cash in transit.

The use of the box does not require use of the Police and reduces the cost of transporting money by 33 per cent.

“If it has worked all over the world, why shouldn’t it work in Kenya?” said Mr Downes.