Bank takes drastic action in substantial anti-fraud campaign, dismissing 1,200 employees following a reported loss of $15.4 million at Equity Bank.
Equity Group Holdings (EGH), Kenya's second-largest bank by assets, has taken a bold step in combating fraud following an internal investigation initiated in April 2025. The probe, which has revealed widespread fraudulent activities, has led to the termination of more than 1,200 employees and significant financial losses.
The investigation uncovered collusion between staff and external fraudsters across various departments, involving unauthorized transfers, misuse of personal accounts, and M-Pesa wallets. Some of the funds were illegally transferred to offshore accounts, including a notable case last year involving transfers to Abu Dhabi. The total financial loss is estimated at approximately 2 billion Kenyan shillings (approximately $15.4 million) over a two-year period.
CEO James Mwangi has vowed to protect the bank and its customers, stating that he will be ruthless in his approach. He emphasised that "this is not a toll station," referring to the culture where customers offer tips or gifts in exchange for faster service. The bank's operations span Kenya, Uganda, Tanzania, South Sudan, the Democratic Republic of Congo, and Rwanda.
The investigation is not limited to Kenya. It is expanding to cover EGH’s subsidiaries, including EquityBCDC in the Democratic Republic of Congo (DRC), where the group holds a 27% market share. This development may affect EGH’s plan to divest its 35% stake in EquityBCDC, a move required by the Central Bank of Congo to be completed by July 4, 2026.
The purge began quietly on May 20, with an initial group of 200 employees being let go. The internal source familiar with the investigation stated that any minimal financial or non-financial contact with individuals under scrutiny could lead to termination. This week's mass layoff, impacting over 1,200 staff, signals a major cultural shift within the bank.
Equity Group, as a champion of financial inclusion, has built its brand over time. The bank currently employs over 14,000 people. Rapid digitization and surging transaction volumes have highlighted vulnerabilities, particularly in internal controls and employee conduct. As a result, Equity Group is closely examining employee transactions since April.
The ongoing investigation extends to Equity Group's subsidiaries, suggesting more dismissals could follow. This decisive response highlights the scale of the fraud challenges faced and EGH’s strategy to enhance compliance and governance across its operations. The mass dismissals mark one of the most significant anti-fraud crackdowns by a Kenyan financial institution in recent history.
The ongoing investigation at Equity Group Holdings, following the uncovering of fraudulent activities, has extended to its subsidiaries, particularly EquityBCDC in the Democratic Republic of Congo, emphasizing the need for enhanced compliance and governance across all business and banking-and-insurance sectors. Given the widespread fraud, CEO James Mwangi has vowed to protect the bank, supporting financial inclusion by ensuring integrity and preventing collusion in the industry.
