Equity Bank Staff Crackdown Moves to Uganda, Who’s Next?

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The internal fraud crackdown that saw Equity Bank sack over 1,200 employees in Kenya has now expanded to Uganda, as the lender intensifies its scrutiny of staff conduct across its East African subsidiaries.

In what insiders describe as a continuation of a forensic audit launched after the exposure of a KSh1.5 billion insider payroll fraud in Kenya, Equity Bank Uganda has begun issuing “show-cause” letters to employees flagged for suspicious transactions. The letters demand explanations for personal account deposits that coincide with customer loan disbursements.

Sources familiar with the process revealed that staff at Equity Bank Uganda are being asked to justify why they received certain deposits on the same day specific loans were issued.

The crackdown follows the April 2025 conclusion of an internal audit that uncovered widespread staff misconduct within Equity Bank Kenya. That probe exposed unauthorized payroll manipulations, money laundering through mobile money platforms, and irregular linkages between staff and customer accounts.

The fraud involved at least 47 unauthorized withdrawals processed using stolen credentials of a manager who was on leave. The audit, which reviewed employee financial transactions from December 2023 to March 2025, flagged suspicious flows between staff salary accounts, M-Pesa wallets, and customer-linked entities.

In several cases, deposits exceeded the employee’s monthly earnings without valid explanation. Staff who could not account for the funds were dismissed after disciplinary hearings.

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Equity Group CEO James Mwangi first disclosed the scale of the investigation during the bank’s Q1 2025 results briefing, where he emphasized the need to restore ethical practices and rebuild public trust. In Kenya, the clean-up resulted in mass dismissals across departments, including retail banking, credit, and IT.

The Uganda phase of the probe is following the same methodology. Investigators are analyzing employee accounts for anomalies, particularly around loan issuance dates. Any deposits linked to known bank customers are automatically flagged for review. The review process is ongoing and expected to continue through July 2025.

The crackdown in Uganda has heightened anxiety across other Equity subsidiaries, with staff in Rwanda, Tanzania, and DRC reportedly preparing for possible audits.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.