Equity Bank has dismissed about 200 employees in Kenya after uncovering a major payroll and M-Pesa fraud scandal.
The internal investigation revealed that the employees were involved in illegal transactions that cost the bank over Ksh1.5 billion.
The scandal was discovered during audits that began in December 2024. Both junior and senior staff were affected, including workers from the head office and branches across the country.
The employees were asked to explain any suspicious income in their M-Pesa and bank accounts. Those who couldn’t justify the deposits faced disciplinary hearings.
The investigation found that stolen IT credentials from a manager at the Group Processing Centre had been used to approve over 40 fake transactions. The money was then sent to outside accounts.
Dr. James Mwangi, the Group CEO, made it clear that this was not a downsizing move but a clean-up to protect the bank’s trust. “We are Africa’s top-rated financial brand. Trust is our currency, and it must be protected,” he said.
The fired workers were paid for days worked, unused leave, and given notice pay as per the bank’s policy. Their dismissal letters cited gross misconduct, ethical breaches, and conflict of interest.
To prevent future scandals, the bank is hiring more risk experts, tightening controls, and improving compliance across its branches in Uganda, Tanzania, Rwanda, DRC, and South Sudan.
Despite the fraud, Equity Bank reported a Ksh24.1 billion profit in 2024 and ranked third best performing company in East Africa by African Business in 2025.
By Newshub