Equity Bank Fires Staff Over Suspected Insider Fraud
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Equity Bank Kenya has dismissed an undisclosed number of employees after internal investigations uncovered suspicious financial activity involving staff salary accounts and personal M-Pesa numbers.
The bank began issuing termination notices last week, targeting employees suspected of engaging in insider fraud and undisclosed financial dealings with customers or parties connected to the institution.
The dismissals follow a probe launched on April 14, focused on bank employees who received unexplained deposits from clients, colleagues, or external entities linked to the bank.
The flagged transactions, which were traced to Equity Bank salary accounts and registered mobile money wallets, raised questions over potential conflicts of interest and violation of internal policies.
According to sources close to the investigation, affected employees were required to explain the origin of funds credited to their accounts. Those who failed to provide satisfactory documentation were relieved of their duties.
Equity Bank has given the dismissed workers a 14-day window to appeal the decision to the managing director.
While the bank has not disclosed the total number of affected staff, the action spans multiple branches nationwide, indicating a widespread internal clean-up aimed at tightening operational integrity.
This development comes amid growing concerns about insider fraud in Kenya’s banking sector. Equity Bank has previously grappled with internal breaches, most notably in August 2024 when it lost KSh 1.5 billion in a complex internal fraud case.
The scheme, involving 47 unauthorized transactions, diverted funds meant for staff salaries into multiple bank accounts.
The heist triggered an investigation by the Banking Fraud Investigations Unit (BFIU), leading to the arrest of David Machiri Kimani, a branch manager who was on leave at the time, and his father, Joseph Kimani Machiri.
In 2023 alone, Equity Bank handled 48 internal fraud-related disciplinary cases, resulting in 22 terminations and 26 voluntary resignations.
Other banks have also reported insider fraud incidents in recent years. I&M Bank lost KSh 27.14 million after a former operations manager manipulated currency denominations at the Kisii branch.
SBM Bank Kenya was defrauded of KSh 9.5 million after a malware breach on its mobile banking platform, traced to the negligence of an IT officer who had left her work terminal remotely accessible.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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