Inside the Ksh1.5B Equity Bank Payroll & M-Pesa Scandal That Led to 200 Staff Being Fired
Equity Bank Kenya has dismissed over 200 employees in what is being described as one of the most significant internal fraud crackdowns in the country’s banking sector. The sweeping move follows the discovery of a Ksh1.5 billion payroll and M-Pesa scam involving unauthorized transactions and the misuse of internal IT systems.
File photo of Equity Bank branch in Nairobi. PHOTO: Courtesy
How the Scam Was Exposed
The bank’s internal audit team launched investigations in December 2024 after suspicious activity was detected. Employees were asked to explain irregular bank or M-Pesa deposits made into their personal accounts over the past two years. Those who could not justify the transactions were subjected to face-to-face disciplinary hearings.
Investigators uncovered that stolen login credentials from a manager at the Group Processing Centre were used to authorize over 40 large transactions, redirecting funds into external accounts.
Dismissals Across the Board
The dismissed staff included both senior managers and junior employees based at the headquarters and across multiple branches nationwide. According to internal sources, most of the sacked employees received letters citing gross misconduct, conflict of interest, and violation of internal ethics policies.
“Some transactions were linked to client accounts, internal employees, and external businesses, violating our ethical code,” a bank source revealed.
James Mwangi: “We Must Protect the Brand”
Equity Group CEO James Mwangi said the dismissals were necessary to uphold the bank’s reputation as Africa’s top-rated financial brand.
“We have pushed the brand to global heights. It will not survive if our people contradict its integrity,” Mwangi asserted.
He clarified that the mass sacking was not a redundancy exercise but a targeted clean-up to restore stakeholder trust.
Termination Terms and Employee Compensation
Despite the circumstances, Equity Bank confirmed that the dismissed employees received:
- Salary up to the last working day
- Compensation for unused leave days
- Notice pay as per the bank’s termination policy
Strengthening Internal Security Measures
In response to the fraud, Equity Bank has increased its investment in compliance, internal audit, and cybersecurity. It is also hiring experts in anti-fraud and digital forensics to monitor operations both in Kenya and at subsidiaries in Uganda, Tanzania, Rwanda, South Sudan, and DRC.
Equity Bank’s Financial Performance
Despite the internal scandal, Equity Bank posted a net profit of Ksh24.1 billion in 2024 and was ranked as the third-best performing company in East Africa by the 2025 African Business Ranking. It also placed 88th across the African continent, with a market value of Ksh1,296 billion.
This unfolding scandal serves as a wake-up call for financial institutions operating in the digital space. Equity Bank’s swift and firm response shows the weight it places on transparency and trust—a crucial move to retain the confidence of its customers and investors.
