Equity Bank Just Took Out 1200 Employees: What Went Wrong?
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Equity Bank has dismissed 1200 employees across its branches following an internal forensic audit that uncovered widespread fraud involving staff salary accounts, customer transactions, and third-party businesses.
The bank’s investigations linked the employees to suspicious financial activity, including collusion in high-profile thefts involving billions of shillings. The dismissals come after an April 2025 probe that examined employee transactions dating back to December 2023.
According to sources familiar with the matter, the audit revealed unexplained money flows between employee salary accounts, M-Pesa wallets, and entities associated with customers. Staff were required to account for deposits exceeding their salaries; those who failed to do so faced disciplinary hearings and termination.
Among the incidents flagged was a Sh1.5 billion payroll fraud carried out between May and July 2024. Investigators say 47 unauthorized withdrawals were processed using the stolen credentials of a bank manager on leave.
The funds were funneled through various accounts and eventually laundered via cryptocurrency platforms. A lawyer, Esther Bitutu Kadiki, has been named as a key suspect, with at least Sh38 million traced to accounts linked to her law firm and personal company.
Read: How Banks in Kenya Are Losing Millions to Insider Fraud Schemes
Another employee is alleged to have siphoned Sh386.5 million to eight shell companies, with Equity now pursuing legal action to recover the funds. The bank has not disclosed the employee’s identity but has confirmed that this fraud was also unearthed through the forensic audit.
A third incident involved Sh8 million stolen from a senior politician’s account in July 2024. The money was reportedly routed through crypto exchanges to offshore destinations. While this case involved a smaller sum, it shared similar laundering methods with the larger payroll fraud.
The bank has since notified all dismissed employees, offering a 14-day window to appeal to the managing director.
The audit, conducted by Equity’s internal control team, was prompted by abnormal transactions reported to the Banking Fraud Investigation Unit (BFIU) in July 2024. The Directorate of Criminal Investigations (DCI), with support from the National Intelligence Service (NIS), is leading the ongoing investigations.
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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