Equity Bank dismisses 200 Kenyan employees amid payroll scandal

Equity Bank has terminated approximately 200 employees across its Kenyan branches following the discovery of an elaborate payroll and M-Pesa fraud during internal audits, resulting in a loss of Sh1.5 billion.

The employees let go, who worked both at the bank’s headquarters and various branches around the country, included a mix of senior management and junior staff.

The company stated that the terminations came after several months of investigations that began in December 2024.

Employees were asked to explain any unusual funds credited to their bank or M-Pesa accounts over the last two years, with those unable to provide satisfactory explanations facing in-person disciplinary hearings.

Additionally, the company disclosed the employees exploited stolen IT credentials from a manager at the Group Processing Centre.

These credentials were used to approve more than 40 high-value transactions, diverting close to Sh1.5 billion into external bank accounts.

Equity Group CEO James Mwangi clarified that the recent dismissals were not part of a redundancy exercise but rather a critical measure to protect the bank’s reputation for trustworthiness.

"We have built the brand to become Africa’s most highly rated financial institution and the second best globally. Such a reputation cannot be maintained if our staff act contrary to our values," Mwangi emphasized.

As a result, affected employees were issued termination notices, with reasons including gross misconduct, conflicts of interest, and breaches of ethical standards.

Among the irregularities identified were unauthorized money transfers involving clients, associated entities, or other staff members, which go against Equity’s internal ethical policies.

Employees affected were compensated with salaries up to their last working day, payment for unused leave, and notice pay, all in accordance with the bank’s termination policies.

The bank also highlighted ongoing efforts to enhance its internal controls by recruiting more security and risk management experts, as well as bringing in senior professionals specialized in anti-fraud measures.

Equity has strengthened its compliance programs across its subsidiaries in Uganda, Rwanda, Tanzania, South Sudan, and the Democratic Republic of Congo.

Despite the fraud incidents, Equity Bank Kenya reported a net profit of Ksh24.1 billion for the financial year ending December 2024.

In the 2025 African Business rankings, the bank was recognized as the third best performing company in East Africa with a market value of 1,296. It also secured the 88th position across the entire continent.