Kenneth Onyango, the Equity Bank Executive Director of Commercial Banking, has stepped down.
He has been with the bank for nearly 8 years serving as Head of Risk, Head of Operations and Head of Business, before being elevated to head Commercial Bank as an Executive Director.
His resignation takes place around the same time the bank has admitted to possible digital lending fraud.
A couple of other bank staff are also being investigated over the matter.
According to our sources, we understand up to UGX65 billion was lent out to undeserving clients who either didn’t qualify or did not put the money to the intended use and most of it has since gone delinquent. It is believed that the undeserving clients would then share the loot with bank staff, many of whom are at large.
CEO East Africa Magazine reached out to Anthony Kituuka, the bank’s Managing Director for a comment on the fraud, the amounts involved and if the stepping down of Kenneth Onyango are related, but he referred this reporter to Barbra Among, the spokesperson
In a statement mailed to this reporter, as well as posted on the bank’s social channels, the bank said it was aware of the fraud but said it was still investigating some of its staff as well as other unnamed customers.
It however declined to respond directly on the matter of forcing out its head of commercial banking.
“We regret to inform you that we have recently identified a possible fraud on our Stock Loan and Agent Float Financing products,” the bank wrote.
“People of interest, including a few of our staff and customers, are currently assisting with investigations by the relevant law enforcement authorities. We hold ourselves to the highest standards of accountability and transparency, and persons found to be responsible, whether through fraud or errors of commission or omission will be fully addressed in accordance with the policies, procedures and ethical values of the organisation and, where appropriate, the laws of the country,” the bank added in the statement.
We reached out to Mr. Kenneth Onyango, on his known numbers but he neither picked our calls or responded to our WhatsApp inquiry by the time of publishing.
The bank however reiterated that services were uninterrupted on the Stock Loan and Agent financing products.
“Customers continue to access loans across all our branches countrywide and banking channels,” the bank said, adding: “The Board of Directors and management are committed to resolving and concluding this matter, and we continue to focus on our purpose of transforming lives, giving dignity and expanding opportunities for wealth creation”.
Stock Loan and Agent financing is offered via the bank’s revolutionary product, known as Eazzy Stock. Launched in June 2023, Eazzy Stock is a digital credit product designed to empower businesses by providing them with the opportunity to unlock the value of their goods and access much-needed capital for growth and expansion. The product targets agents, distributors, stockists or retailers who are onward sellers of products or services of an anchor or manufacturer. It allows these categories to access funds for working capital conveniently as and when required.