Equity Bank Fires Nearly 200 Staff in Sweeping Integrity Crackdown Following M-Pesa and Account Audit

Equity Bank Fires Nearly 200 Staff in Sweeping Integrity Crackdown Following M-Pesa and Account Audit

Uganda’s UGX 65 Billion Loan Fraud and UGX 4 Billion Visa Losses Reveal Deeper Regional Integrity Challenges

By CEO East Africa Magazine | Source: Business Daily, Nation Media Group (Reporting by George Ngigi)

Equity Bank Kenya has terminated the contracts of nearly 200 employees in a sweeping internal purge following an extensive audit of staff salary accounts and M-Pesa transactions. The disciplinary action—described as one of the largest in the bank’s history—was triggered by an investigation into conflict of interest and potential fraud involving unexplained deposits from clients or associates.

According to Business Daily, the crackdown began on April 14 and affected staff across both the bank’s head office and its nationwide branch network. Those unable to satisfactorily explain the source of funds in their salary accounts or mobile wallets were issued termination letters, with a 14-day window to appeal to the bank’s managing director.

“It was established that you received amounts into your account number and/or M-Pesa number account under circumstances that were irregular and unethical and which involved and/or were connected to bank customers or entities with a relationship with the bank,” reads one of the termination letters seen by Business Daily.

The move comes just months after Equity lost KSh 1.5 billion to a payroll fraud involving insiders, prompting the bank to begin a deep investigation into employee transactions. The scam had relied on access credentials belonging to a senior salary processing officer and spanned over 40 fraudulent transactions.

“In Kenya, it was a payroll of Sh1.5 billion, so that is what triggered us. If a staff member can do this, how many others can do it? It prompted us to ask the question of conflict of interest,” said Dr. James Mwangi, CEO of Equity Group.

Integrity Over Redundancy
Equity Group has maintained that the action is not about trimming staff but re-aligning the bank’s culture with its brand promise.

“We have pushed the brand, it is now Africa’s top-rated financial brand and second globally. It will never survive if its people contradict it,” Dr. Mwangi told Business Daily.

“So this year we did not only audit competence and capabilities to see whether you are fit for the next 10 years, to determine whether to retire or reassign you, but we also checked ‘are you conflicted? Can we trust you? Can you uphold our currency of trust?’” he added.

Termination letters cited “gross misconduct” and acts “contrary to the Group’s code of conduct and work ethics.”

The terminated employees will receive their salary up to the last day worked, compensation for any outstanding leave days, and a month’s pay in lieu of notice, less any debts owed to the bank.

Uganda’s Troubles: A Pattern of Digital Fraud
While the current wave of sackings is concentrated in Kenya, the scandal draws attention to similar governance and digital risk issues in Equity Bank Uganda, where the Group has suffered staggering losses in recent years.

Between 2018 and 2024, the Ugandan subsidiary was engulfed in a massive internal fraud scheme involving UGX 65 billion in unsecured loans issued through the bank’s digital lending platform, Eazzy Stock. Employees colluded to channel funds to fake companies, unqualified borrowers, and relatives without adequate security or due diligence.

Investigations led to the arrest and prosecution of at least eight staff members, while the scandal triggered a leadership shake-up, culminating in the resignation of Managing Director Anthony Kituuka. The fraudulent scheme contributed significantly to Equity Bank Uganda’s UGX 18.8 billion loss in 2023 and left a lasting dent on the bank’s public image and internal morale.

In a further blow to the bank’s digital credibility, 2022–2023 saw a wave of SIM-swap and mobile banking frauds in Uganda. Fraudsters accessed customer accounts, changed PINs, and drained funds—often with little recourse for victims.

Despite acknowledging the breaches and urging customers to “report losses promptly and safeguard their devices,” the bank faced widespread criticism over the slow pace of investigations and the limited number of refunds issued.

The hits kept coming: in 2024, the bank reported UGX 4 billion in losses due to negligence in reconciling thousands of Visa card transactions. The fraud, linked to two employees in the monitoring team, exposed systemic failures in transaction oversight. To recoup the funds, the bank placed liens on numerous customer accounts—some already dormant or closed—further aggravating client frustrations.

Collectively, these events pushed Equity Uganda’s fraud-related provisions to UGX 191.2 billion in 2023, underscoring the scale of exposure and weak internal controls.

Group Reinforces Risk Management Across the Region
In response, Equity Group has bolstered its internal controls, recruiting a host of risk and audit professionals, including:

A Senior Fraud Manager for Payments

A Senior Fraud Manager for Insurance & Investment

A Chief Internal Auditor, Beth Githinji, formerly of the Central Bank of Kenya

A Fraud Risk Analyst, and

A Senior Manager for Security, Governance and Technical Assurance

The Group’s integrity screening now stretches across its regional subsidiaries, including Uganda, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo.

“The screening is complete, now it’s engagement and you are shown your picture and you are asked how can you change? It is not about sackings. It is also mentoring; how can we help you? But if you are conflicted, then you have to leave,” Dr. Mwangi told Business Daily.

Financial Health Holding—But at What Cost?
Equity Group’s financials remain solid, with net profit growing 10.9% to KSh 46.5 billion in 2024. However, Equity Bank Kenya’s standalone profit fell by 9.7% to KSh 24 billion, underscoring rising costs, including provisions and internal reforms.

Staff numbers in Kenya also declined by 5% from 8,178 in 2022 to 7,763 in 2023, reflecting broader changes in workforce strategy amidst digital transformation.

With a customer base of 12.9 million in Kenya alone, the Group is under pressure to uphold customer trust, protect digital platforms, and reinforce its reputation as Africa’s leading financial brand.