NAIROBI, Kenya — Thirty-seven former employees of Equity Bank have filed a Sh148 million defamation suit against the bank and its Chief Executive Officer, James Mwangi, accusing them of damaging their reputations through public statements linking mass dismissals to alleged integrity breaches.
The former staff claims Mwangi made remarks in 2025 suggesting the bank was dismissing large numbers of employees over fraud, criminal conduct, and unethical behaviour.
According to the suit, the statements were widely disseminated through mainstream media interviews, internal communications, and public commentary.
The plaintiffs argue that none of them had been charged, investigated, or convicted of any criminal wrongdoing before their dismissal.
Court filings indicate the former workers contend the layoffs were in fact part of a broader organisational restructuring and staff rationalisation programme rather than a purge based on proven misconduct.
The ex-employees are reportedly relying on previous remarks attributed to Equity’s Human Resources leadership, including statements published by Business Daily, which described the exercise as part of operational restructuring within the lender.
The suit argues that Mwangi’s public remarks created the impression that all affected employees were dishonest and professionally compromised, potentially harming their ability to secure employment within the financial sector.
The plaintiffs further contend that the reported Sh1.8 billion losses cited by the bank were tied to specific individuals and isolated incidents, not the entire workforce affected by the dismissals.
They are seeking Sh148 million in damages alongside a public apology and formal retraction of the alleged defamatory statements.
The dispute follows one of the largest staff crackdowns in Kenya’s banking sector. Earlier, Equity Group Holdings announced the dismissal of more than 1,200 employees as part of what Mwangi described as an aggressive integrity purge targeting suspicious financial activity within the institution.
At the time, Mwangi publicly defended the exercise, stating: “It doesn’t matter how many I will lose. I don’t even care. I have just started the journey. I will be ruthless.”
Reports indicated staff members were required to explain irregular transactions in their bank and M-Pesa accounts dating back two years, with disciplinary hearings conducted for employees flagged for unexplained deposits.
Some former staff have since questioned the consistency and fairness of the process, arguing that dismissals were, in certain cases, based on minor personal transactions despite employees providing supporting documentation.
The fallout reportedly strained branch operations in some areas, with concerns emerging over understaffing and declining staff morale.
The legal challenge also comes amid heightened scrutiny surrounding Mwangi and the bank over several other high-profile controversies.
Recently, a parliamentary watchdog committee summoned the Attorney General, Mwangi, and other firms linked to the eCitizen platform over concerns surrounding the possible loss of Sh9.4 billion in public revenue tied to the digital payments system.
Separately, the Environment and Land Court issued a judgment involving a disputed Sh1 billion Muthaiga property linked to Mwangi and his wife. Justice Oscar Angote ordered the cancellation of titles connected to the property, awarded Sh10 million in damages for trespass, and directed the couple to vacate the residence.
In another development, Equity Bank Rwanda reportedly lost about Sh415.9 million in a fraud scheme involving manipulation of its mobile money float system, with two employees among dozens arrested in connection with the case.
