Equity Group, Kenya’s second-largest bank by assets, has dismissed over 1,200 employees in one of the largest anti-fraud purges in the country’s banking history. The move follows a months-long internal investigation that uncovered widespread collusion between staff and fraudsters, resulting in losses exceeding $15.4 million (KES 2 billion) over the past two years.
CEO James Mwangi announced the sweeping layoffs on May 29, emphasizing a zero-tolerance stance on internal fraud. “The moment of reckoning has come. It doesn’t matter how many I will lose. I don’t even care. I have just started the journey. I will protect the customers and the bank. I will be ruthless,” Mwangi said during a press briefing.
The probe revealed that some stolen funds were illicitly transferred to offshore accounts, including a high-profile case involving transfers to Abu Dhabi. Employees across multiple departments were found to have either facilitated or ignored suspicious transactions involving clients. The investigation scrutinized staff bank accounts and mobile money wallets, with even minimal contact with known fraud suspects leading to dismissal.
The purge began quietly on May 20 with the firing of 200 employees but escalated sharply this week. Equity Group employs over 14,000 people across seven African markets, and Mwangi indicated that the investigation would continue, potentially leading to further dismissals.
This bold move highlights persistent governance challenges within Kenya’s banking sector, which has faced numerous fraud scandals in recent years. Equity’s aggressive approach aims to restore trust and strengthen internal controls amid rapid digitization and growing transaction volumes.
Employees affected by the layoffs received immediate termination notices with compensation packages including pay until their last working day, unused leave, and severance.
