Equity Bank has terminated the contracts of 1,200 employees across Kenya, Uganda, and Tanzania after a forensic audit linked them to a complex Sh1.5 billion internal fraud scheme.
The mass dismissal, which represents roughly 9 percent of the lender’s workforce, is the largest single-day staff action in the bank’s history.
According to Equity Group CEO Dr James Mwangi, the affected employees have been issued 48-hour ultimatums to justify the suspicious financial activities flagged in the audit, including unauthorized fund transfers, bribe-taking for loan approvals, and compromise of internal IT credentials.
“This is a painful but necessary decision. We must protect our customers and uphold the integrity of our institution. We will not allow a few bad actors to tarnish the good work of many,” Mwangi said.
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The crackdown follows a previous wave of terminations in May, when 287 staff were let go following a separate investigation. The current sweep is the result of months of tracking questionable transactions in employee M-PESA and Equity accounts.
Investigations revealed that some employees exploited their access to manipulate customer records, inflate loan applications, and siphon money to external networks in exchange for kickbacks.
Charles Karanja, a governance consultant said the move by Equity Bank sends a strong signal to the sector, with regulators expected to follow closely.
“What Equity is doing is unprecedented in scale. It shows a shift from quiet internal handling to bold, public accountability,” Karanja said.
The Central Bank of Kenya has not commented formally, but sector insiders say tighter compliance reviews could soon be ordered across tier-one banks.
Affected staff are expected to present their defense in writing within two days, failing which the terminations will be finalized and details forwarded to law enforcement.
“We are building a future where trust is the foundation of every transaction. This is how we protect our depositors, our shareholders, and our mission,” Mwangi said.
