Kenya’s Second Largest Bank, Equity Bank Fires 1,200 Staff Over $15.4 million Fraud

Equity Bank, Kenya’s second-largest bank by assets, has fired more than 1,200 staff in an attempt to curb internal fraud according to the bank’s CEO James Mwangi.

This move, which marks one of the most significant anti-fraud crackdowns by a Kenyan financial institution in recent history, follows an extensive internal investigation into staff collusion with fraudsters, resulting in financial losses exceeding $15.4 million (KES 2 billion) over the past two years.

Widespread Fraud

Investigations revealed that some of the funds were illegally transferred to offshore accounts in collusion with employees across various departments who were either complicit in or turned a blind eye to suspicious transactions involving clients. This is the latest of such issues in Kenya’s banking sector, which has grappled with numerous high-profile fraud incidents.

Mwangi told Business Daily during an interview, “The moment of reckoning has come. It doesn’t matter how many I will lose. I have just started the journey. I will protect the customers and the bank and I will be ruthless.

“…want to encourage customers not to compromise staff Because we have zero tolerance for anybody who is conflicted.” He stated criticizing a culture where customers routinely offer staff tips or gifts in exchange for faster service.

Equity Bank Crackdown on Employees

Since April, the bank has been closely examining employee transactions, including personal M-PESA activity and bank accounts, to identify links to known fraud suspects or even regular customers involved in fraudulent dealings.

An internal source familiar with the investigation pointed out that even minimal contact, financial or otherwise with individuals under scrutiny was enough to warrant termination.

The job terminations began on May 20, when an initial group of 200 employees was let go, before over 1,200 staff had their jobs terminated last week..

This move, the bank’s CEO notes signals a major cultural shift within the bank and a firm stance against misconduct adding that the investigation will continue across all seven of the bank’s markets, suggesting more dismissals could follow.

Equity Group currently employs over 14,000 people across its divisions in Kenya, Uganda, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo as well as its representative office in Ethiopia.

 

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