NAIROBI, Kenya- Kenya’s second-largest lender, Equity Bank, is at the center of a shocking financial scandal involving an insider and his father.
Last month, the bank fell victim to a staggering Sh1.5 billion heist, now under investigation by the Banking Fraud Investigations Unit (BFU).
The stolen funds, originally intended for employee salaries, were discreetly siphoned off in 47 transactions, moving through various accounts in other banks without corresponding credits on Equity’s ledger.
The scheme was orchestrated using the credentials of a bank manager, David Machiri Kimani, who was conveniently on leave during the heist.
Equity Bank’s internal controls eventually flagged the suspicious transactions, prompting the lender to report the incident to the BFU.
The subsequent investigation led to the arrest of Kimani and his father, Joseph Kimani Machiri, a former member of the Murang’a County Assembly.
According to sources, much of the money was funneled through newly created accounts under the guise of recently registered businesses.
This incident is not an isolated case for Equity Bank. Earlier this year, the bank faced another significant breach when hackers made off with USD 2 million in a debit card fraud.
The Directorate of Criminal Investigations (DCI) arrested 20 suspects connected to the crime.
Around the same time, Equity’s Ugandan subsidiary was embroiled in a USD 16 million fraud case involving stock loans and agent float financing, leading to multiple arrests and charges of money laundering and conspiracy.
These incidents highlight a troubling pattern of security breaches within Equity Group, despite the bank’s strong financial performance, including a 12.5pc growth in profit after tax in the first half of 2024.
The bank’s vulnerability to insider threats and cybercrimes is a growing concern as it expands its operations across the region.
Equity Bank’s recent string of high-profile fraud cases underscores the urgent need for stronger internal controls and security measures.
As the investigation into the KSh 1.5 billion heist continues, the bank must address the root causes of these breaches to restore confidence among its customers and stakeholders.
Ensuring that such incidents do not recur will be crucial for Equity’s long-term stability and reputation in the competitive banking sector.
