Kenya has been shaken by revelations of a major fraud scheme involving Equity Bank, one of the country’s largest financial institutions.
Investigators report that a total of Sh1.49 billion was illegally siphoned from the bank’s internal salary account over a period of three months, pointing to a well-coordinated effort that involved both insiders and outside accomplices.
The money was moved out through 47 suspicious transactions between May and July 2024, each cleverly disguised with false descriptions meant to avoid detection.
The discovery began when the bank’s Internal Control Department picked up unusual account activities that did not align with normal salary remittance operations.
A forensic audit was then launched, and what emerged was a picture of digital manipulation involving stolen logins, shell companies, and misleading paperwork.
Investigators found that the system was accessed using the credentials of a senior manager who was on official leave at the time, raising questions about how the syndicate managed to bypass the bank’s security measures.
As authorities dug deeper, they linked the money trail to several companies that appeared to exist only on paper. Names like Ubahashi Traders, Hotho Investments, and Sasa Pay Trust surfaced, with amounts ranging from Sh11 million to over Sh200 million channeled through them.
The transactions showed signs of advanced laundering techniques, such as splitting money into layers, large cash withdrawals, and converting portions of the funds into cryptocurrency to obscure their origin.
One of the key individuals now facing charges is city lawyer Esther Bitutu Kadiki. Court documents suggest that she played a role in setting up the shell companies used to move the funds and even went as far as drafting fraudulent contracts to give the transfers a sense of legitimacy.
Her law firm and personal bank accounts are alleged to have received millions from the scheme, including Sh38.4 million linked to Inforide Point Limited, a company she jointly owns with her husband.
The Directorate of Criminal Investigations has described the case as one of the most elaborate fraud networks it has dealt with in recent years.
Equity Bank has moved quickly to contain the damage, terminating employees found to have engaged in suspicious activity.
CEO James Mwangi has confirmed that the scandal has led to a thorough internal review, with the bank now prioritizing stricter checks to safeguard client and institutional funds.
The case has raised concerns about the vulnerability of financial systems to insider threats and the increasing use of complex laundering methods that make it harder for regulators to track stolen money. It remains under investigation, with several suspects expected to face prosecution as the full extent of the scheme comes to light.
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