Questions regarding Equity Bank Kenya’s security protocols and fee structures have surfaced following an incident where a local entrepreneur, Okong’ Okuna, was billed a KSh2,374 cancellation fee after intercepting what he believes was a calculated payment scam involving a bounced check.
The ordeal began when a prospective buyer insisted on executing a bank-to-bank transaction, citing rigid internal corporate policies.
To safeguard his personal capital, Okuna deliberately supplied the credentials for an empty Equity Bank account, allowing him to monitor incoming transfers safely. Shortly after the purported payment was initiated, the buyer urged him to dispatch a delivery rider to collect the merchandise.
Exercising caution, Okuna declined the request, maintaining that he would not release the items until the funds were fully reflected in his available ledger balance rather than merely appearing in his transaction history.
Prompted by mounting suspicions, Okuna reached out to customer support to verify the status of the funds.
Representatives clarified that the transaction was processed as a check deposit rather than the promised RTGS transfer, leading him to sever ties with the buyer immediately. By the following morning, the check had predictably failed to clear due to insufficient funds.
The situation escalated when Okuna discovered a KSh2,374 debit on his account statement. When he inquired about the deduction, a bank representative defended the policy, stating that both the intended recipient and the drawer incur cancellation charges when a check fails or is recalled.
Expressing his frustration on social media, Okuna noted the absurdity of a system where a business targeted multiple times in a single day by bad-faith actors could face crippling financial penalties despite refusing to fall victim to the fraud.
This financial penalty has cast a spotlight on systemic vulnerabilities and consumer protection measures within commercial banking. Business owners are increasingly concerned that innocent vendors who successfully thwart fraudulent attempts are still left absorbing institutional fees.
Consequently, stakeholders are pressing Equity Bank to justify the deduction, clarify how clients can distinguish different deposit types in real time, and establish robust safeguards to ensure customers are not penalized for exercising due diligence against financial crime.
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