Kenyan businesses are shifting their primary risk focus from economic volatility to political instability and civil unrest, according to the newly released World Security Report 2025.
The study reveals that companies are bracing for a turbulent year, with a significant majority planning to boost security spending in response.
The report, commissioned by global security firms Allied Universal and G4S, surveyed chief security officers (CSOs) from medium and large companies worldwide.
In Kenya, 45% of security chiefs identified political instability as their top concern for the coming year, while 43% pointed to civil unrest. Both figures exceed regional averages and mark a notable shift from 2023, when economic instability was the dominant worry.
“Political and civil unrest can have an immediate and costly impact on businesses and investor confidence,” said Laurence Okelo, Managing Director of G4S Kenya. “Security leaders are preparing to bolster their physical security programmes in response.”
Economic Concerns Ease, But Fraud Persists
In a sign of cautious optimism, concerns over economic instability have fallen to 41%, down from 52% last year. However, the lingering effects of financial pressure are evident, with fraud cited as the leading external threat by 41% of Kenyan firms.
The heightened anxiety around civil unrest follows a period of significant disruption. The report notes that the Gen Z-led demonstrations earlier this year resulted in substantial economic losses, particularly for the retail and hospitality sectors. Nearly half (45%) of Kenyan CSOs reported revenue losses due to security incidents, and more companies in Kenya than anywhere else in Sub-Saharan Africa experienced increased insurance costs.
This perception of risk is shared by investors. The report, which also surveyed 200 global institutional investors, found that they believe a major security incident could slash the value of a listed company by as much as 32%.
Kenya Leads Region in Protest Expectation
The data underscores Kenya’s unique position in the region. More than one in five companies (21%) in the country expect to be directly affected by protests or demonstrations in the next year—the highest rate reported in Sub-Saharan Africa.
In response, 79% of Kenyan businesses—one of the highest rates in the region—plan to increase their physical security budgets. Their investment priorities are clear: new technology and infrastructure (83%), followed by enhanced risk assessments (71%) and regulatory compliance (66%).
“Consistent with the 2023 findings, fraud is the dominating internal and external threat across the region, which can be tied back to economic instability,” said Christo Terblanche, regional president of G4S in Africa. “Despite these challenges, it is encouraging to see the planned investment in smart security infrastructure and AI-powered video surveillance.”
Methodology
The World Security Report 2025 is based on a survey of 2,352 CSOs from 31 countries, including 58 from Kenya. The participating companies have a combined annual revenue of over $25 trillion. The report also incorporates the views of 200 institutional investors managing more than $1 trillion in assets.
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