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Equity Bank Fires 1,200 Staff in Historic Anti-Fraud Crackdown After $15.4M Loss

Ultimate Guide to Uganda Employment Compliance
Ultimate Guide to Uganda Employment Compliance

Equity Group, Kenya’s second-largest bank by assets, has terminated the employment of more than 1,200 staff in a sweeping internal purge aimed at curbing fraud, CEO James Mwangi revealed on Wednesday. This move marks one of the most significant anti-fraud crackdowns by a Kenyan financial institution in recent history.

The mass dismissal follows an extensive internal investigation into staff collusion with fraudsters, which has resulted in financial losses exceeding $15.4 million (KES 2 billion) over the past two years. Some of the funds were illegally transferred to offshore accounts, including a notable case last year involving transfers to Abu Dhabi. The probe uncovered that employees across various departments were either complicit in or turned a blind eye to suspicious transactions involving clients.

While Equity’s zero-tolerance approach is expected to gain favor with regulators and the public, it also exposes deeper governance issues within Kenya’s banking sector, which has grappled with numerous high-profile fraud incidents. Few banks have taken such a bold and comprehensive approach to tackling internal fraud.

“The moment of reckoning has come,” Mwangi told Business Daily during an interview. “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.”

The purge began quietly on May 20, when an initial group of 200 employees was let go, Mwangi said. However, this week’s mass layoff—impacting over 1,200 staff—signals a major cultural shift within the bank and a firm stance against misconduct. Mwangi added that the investigation will continue across all seven of the bank’s markets, suggesting more dismissals could follow. Equity Group currently employs over 14,000 people.

“I want to encourage customers not to compromise staff,” Mwangi stated. “Because we have zero tolerance for anybody who is conflicted.”

Since April, the bank has been closely examining employee transactions, including personal M-PESA activity and bank accounts, to identify links to known fraud suspects or even regular customers involved in fraudulent dealings. An internal source familiar with the investigation said that even minimal contact—financial or otherwise—with individuals under scrutiny was enough to warrant termination.

“This is not a toll station,” Mwangi said, criticizing a culture where customers routinely offer staff tips or gifts in exchange for faster service. “If you have ever eaten Mama Mboga’s chicken, the moment has come.”

Equity Group, which has built its brand as a champion of financial inclusion, has grown from a cooperative society into one of Africa’s largest banking institutions. The bank operates in seven countries: Kenya, Uganda, Tanzania, South Sudan, the Democratic Republic of Congo, and Rwanda. However, rapid digitisation and surging transaction volumes have highlighted vulnerabilities, particularly in internal controls and employee conduct.

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Written by Grace Ashiru

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