Banking & Finance
Equity Bank Fires 200 Over $11M Fraud Scandal
An internal audit uncovered a fraud ring using stolen logins to process 40+ illegal payouts. Both junior and senior staff were implicated.
Equity Bank sacks 200+ staff in $11M M-Pesa and payroll fraud, prompting a cybersecurity overhaul and a vow to restore stakeholder trust.
In a move that has stunned Kenya’s financial landscape, Equity Bank Kenya has terminated more than 200 employees after uncovering a KSh 1.5 billion ($11.5 million) fraud scheme involving payroll systems and M-Pesa accounts.
The dismissals followed a months-long forensic probe into unauthorized transactions, stolen credentials, and internal collusion. The fraud is reportedly the biggest in Equity Bank’s history, spanning across Equity Group Holdings‘ regional operations.
“You can’t build a world-class brand on a foundation that leaks trust,” said Dr. James Mwangi, Equity Group CEO.
It began quietly in December 2024, when an internal audit flagged unusual M-Pesa deposits and fictitious payroll entries tied to staff accounts. Investigations revealed:
- 40+ fraudulent transactions
- Use of stolen login credentials from a manager at the Group Processing Centre
- Rerouted cash into employee and external accounts
One major weakness? The IT infrastructure lacked real-time monitoring, allowing thefts to go unnoticed for nearly two years.
The sackings affected staff across all levels, with internal memos citing:
- Gross misconduct
- Conflict of interest
- Violation of ethics policies
An insider revealed that some schemes involved shell companies working in tandem with bank employees.
“This wasn’t a layoff—it was a surgical cleanup,” Mwangi said. “We had to stop the bleeding.”
Equity confirmed that all affected employees were paid:
- Final salaries
- Unused leave days
- Notice period as per Kenya’s Employment Act
No criminal charges have been filed yet, but future litigation remains possible based on findings from ongoing external audits and law enforcement investigations.
In response, Equity Group launched a multi-million-dollar security revamp, including:
- Hiring digital forensics and anti-fraud experts
- Upgrading real-time monitoring tools
- Increasing audits across operations in Uganda, Tanzania, South Sudan, Rwanda, and the DRC
A special internal task force has also been formed to address systemic control lapses.
With KSh 1.7 trillion ($12.9B) in total assets (Q1 2025), Equity Bank is Africa’s most admired financial brand, according to Brand Africa.
A scandal this size risks derailing its pan-African momentum, including its ambitions to raise capital through international markets.
“This wasn’t just about money—it was about integrity,” Mwangi said. “Our values must match our ambition.”
- 200+ employees terminated
- KSh 1.5B ($11.5M) lost in payroll/M-Pesa fraud
- Cyber overhaul across 6 countries
- Equity’s CEO vows zero tolerance on internal fraud