Equity's James Mwangi speaks on lender's widespread layoffs

Equity Group CEO Dr. James Mwangi has responded to growing concerns over recent reports of large-scale staff cuts within the bank’s branch network.

The move has seen the financial institution part ways with close to 200 employees.

Those affected include personnel from both the bank’s headquarters and branches spread across the country, encompassing individuals in senior management as well as junior roles.

While announcing the bank’s first-quarter financial results on Thursday, May 29, Dr. James Mwangi explained that the layoffs followed a conduct audit carried out on all employees in response to the loss of Sh1.5 billion.

He urged customers to avoid engaging in actions that could compromise bank staff, emphasizing the institution’s strict stance on ethical conduct.

"I want to encourage customers not to compromise staff because you risk their jobs, we have zero tolerance for anyone found to be conflicted," he stated.

Equity Bank Kenya has also pledged to introduce a toll-free number, giving customers a direct channel to report concerns about staff who may be obstructing efficient service delivery.

Dr. Mwangi emphasized that customers should be able to access services freely and pursue their goals without unnecessary obstacles.

"There should be no expectation for any customer to buy lunch for a staff member or offer a tip. We are actively monitoring such behaviour, and it puts the employee’s position at risk," he said.

Last week, Equity Bank disclosed that the recent dismissals followed months of investigations that began in December 2024.

As part of the probe, staff were required to explain any irregular income reflected in their bank or M-Pesa accounts over the past two years.

Those with suspicious or unexplained deposits were summoned for face-to-face disciplinary hearings.

The bank revealed that the employees involved had used stolen IT credentials belonging to a manager in the Group Processing Centre to authorize over 40 high-value transactions.

These transactions ultimately diverted nearly KSh1.5 billion to external bank accounts.

Some of the flagged transactions were linked to clients, corporate entities, or fellow employees—an apparent breach of the bank’s internal code of ethics.

The affected staff members were issued termination letters citing gross misconduct, conflict of interest, and ethical violations.

However, Equity ensured that they were compensated according to policy, receiving salaries up to their last working day, payment for unused leave, and notice pay.

Dr. Mwangi clarified that the move was not part of a redundancy strategy, but rather a necessary internal cleanup to preserve the institution’s core value trust.

While announcing its first-quarter financial results, Equity Bank reported a decline in earnings to Sh15.4 billion, attributing the drop to high inflation and currency depreciation in its South Sudan operations.

Despite the dip in overall earnings, the Kenyan subsidiary showed strong performance, with deposits rising by 7% to Sh792.7 billion.

Total revenue grew by 19%, and non-funded income surged by 23% to Sh7.57 billion, contributing to a 50% increase in profit before tax.

Equity Bank Tanzania recorded a remarkable 540% surge in profit before tax, contributing significantly to the Group’s overall performance.

This strong growth translated into a return on assets of 3.2% and a return on equity of 22.6%.

Commenting on the results, Dr. James Mwangi expressed confidence in the Group’s ability to navigate global economic pressures.

"We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape, where our financial strength provides the flexibility to seize opportunities as the regional economy presents diversified levers for growth," he said.