Kenya’s financial sector has been rocked by a high-level payroll fraud scandal at Equity Bank, with the lender firing several employees after a staggering Sh1.5 billion vanished through suspicious salary disbursements and M-Pesa transactions.
In a bold move to restore confidence, Equity Bank CEO Dr. James Mwangi confirmed that the institution had launched a sweeping internal purge targeting staff linked to a sophisticated web of payroll fraud and mobile money manipulation.
“The integrity of our systems is non-negotiable,” said Dr. Mwangi during a press address on Tuesday. “We are taking decisive action against individuals who abused their access to payroll and transactional systems to siphon off billions. The cleanup is ongoing, and more dismissals may follow.”
Insiders close to the investigation reveal that rogue employees allegedly created ghost workers, manipulated salary structures, and funneled funds into personal or proxy M-Pesa accounts in a complex scheme that escaped detection for months.
One whistleblower described the operation as “a cartel within the system,” with insiders exploiting loopholes in internal controls to enrich themselves at the bank’s expense.
The Central Bank of Kenya (CBK) is said to be monitoring the developments with keen interest, with speculation mounting over possible regulatory intervention or criminal investigations.
The scandal has sent shockwaves through the financial sector, with investors and customers demanding greater accountability. Equity Bank’s shares dipped in early trading hours, and staff morale is reportedly shaken amid fears of further disciplinary action.
As the probe widens, questions loom over how such a vast sum could be siphoned off undetected — and whether similar schemes might exist in other major banks.
