Equity Group, Kenya’s second-largest bank by assets, has dismissed over 1,200 employees as part of an aggressive internal effort to stamp out fraud, CEO James Mwangi has announced. It is one of the most significant anti-fraud actions ever taken by a Kenyan bank.
The massive layoffs follow a months-long internal probe that uncovered extensive employee collusion with fraudsters – costing the bank more than $15.4 million (KES 2 billion) over the past two years. The investigation revealed illicit fund transfers to offshore accounts, including a prominent case involving transactions to Abu Dhabi in 2024. Staff across several departments were found to have either facilitated or failed to report suspicious activity involving customer accounts.
While Equity’s zero-tolerance policy is likely to receive support from regulators and the public, the development underscores broader governance issues in Kenya’s banking sector, long plagued by high-profile fraud cases. Few banks have responded as decisively and transparently as Equity has.
“The moment of reckoning has come,” Mwangi told Business Daily.
“It doesn’t matter how many I will lose. I don’t even care. I have just started the journey. I will protect the customers and the bank. I will be ruthless.”
Equity 2025 Q1 Results |
Subsidiaries are contributing 47% of group’s customer deposits.
“The problem of Kenya is efficiency.” – Dr. James Mwangi, Group MD, @KeEquityBank #equity2025q1results pic.twitter.com/DNpH5r7Zo6
— BitKE (@BitcoinKE) May 29, 2025
The cleanup began quietly on May 20 2025, when Equity terminated an initial group of 200 staff, according to Mwangi. This week’s broader dismissals – affecting over 1,200 employees – mark a dramatic shift in the bank’s internal culture and its stance on misconduct. Mwangi confirmed the investigation would expand across the bank’s seven operating markets, signaling that more job cuts could be coming. Equity employs more than 14,000 people.
“I want to encourage customers not to compromise staff,” Mwangi added. “We have zero tolerance for anyone who is conflicted.”
Since April 2025, the bank has been reviewing employee financial activity – including personal M-PESA and bank account transactions – to trace links to fraud cases. According to an internal source, even limited transactional contact with known fraud suspects or customers under investigation has been grounds for termination.
“This is not a toll station,” Mwangi said, criticizing a pervasive culture where clients routinely offer staff gifts or bribes for faster service.
“If you’ve ever eaten Mama Mboga’s chicken, the moment has come.”
Equity Group has long portrayed itself as a leader in financial inclusion, evolving from a small cooperative into one of Africa’s largest banking institutions, with operations in Kenya, Uganda, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo. But the rapid pace of digitisation and transaction growth has exposed weaknesses in internal controls and employee conduct.
[TECH] Only 3% of Our Transactions Happen Physically, Says Equity Bank, Kenya’s Leading Banks: One of Kenya’s largest banks, Equity Bank, recently indicated that it is positioning its network of 190 branch.. https://t.co/5OK7doogym via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) November 16, 2021
Kenya has had a fair share of banking fraud with a recent warning coming from the U.S government. In its 2024 National Trade Estimate (NTE) to President Trump and Congress, the Office of the United States Trade Representative (USTR) – which advises the U.S. president on trade policy – flagged fake land ownership documents as a key investment obstacle in Kenya for the first time.
REPORT | #Kenya Risks Losing U.S Investments Over Fraudulent Title Deeds
The Office of the United States Trade Representative (USTR) has flagged fake land ownership documents as a key investment obstacle in Kenya for the first time.https://t.co/K3OIC83Lja @USTreasury pic.twitter.com/rfhLIcJgsT
— BitKE (@BitcoinKE) April 11, 2025
Fraud within the crypto space has also been reported with a recent crypto scam where Kenyans lost millions of dollars in a crypto scam.
“This is a new frontier. We must protect consumers and investors with proper [crypto] legislation.” – said a Kenyan lawmaker
This follows a rise in crypto scams such as the #CBEX scam where Kenyans lost millions of dollars. https://t.co/h1ZWFjfKZa @binance
— BitKE (@BitcoinKE) May 24, 2025
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