Nairobi, Kenya — A major financial scandal involving Equity Bank has come to light, revealing a complex web of fraud that saw more than Sh1.5 billion siphoned through a series of coordinated transactions allegedly facilitated by rogue employees, former real estate dealers, and a cover-up that has shaken the banking sector.
Investigations by the Banking Fraud Investigation Unit (BFIU) and other authorities indicate that the funds were diverted through 47 suspicious transactions, orchestrated using forged documents, shell accounts, and collusion within the bank. The fraudulent activities went undetected for months due to deliberate manipulation of internal systems and alleged efforts to obstruct oversight.
Former Realtors at the Center of the Scheme
Sources close to the investigation report that a group of former real estate agents played a pivotal role in facilitating the heist. The suspects are believed to have used fictitious land transactions and non-existent property deals to mask the illicit movement of funds. These fake deals were used as fronts to withdraw and transfer large sums under the pretense of legitimate business operations.
Rogue Bank Staff Implicated
The scandal has further exposed the involvement of bank insiders who allegedly manipulated internal controls and approval systems. Investigators say certain Equity Bank employees bypassed due diligence processes and compliance checks to approve irregular transactions. Some reportedly falsified documentation and made unauthorized approvals, effectively enabling the fraud to continue undetected.
Attempted Cover-Up
What has alarmed investigators even more is the alleged effort by senior bank officials to cover up the incident. According to confidential reports, key individuals within the bank delayed the internal reporting of the theft, altered transaction records, and failed to escalate the matter to regulatory authorities in time. The delay not only obstructed the investigation but also allowed some of the suspects to move the money into offshore or hard-to-trace accounts.
Regulatory Scrutiny and Arrests
Following the exposé, multiple arrests have been made and more are expected as investigations continue. The Central Bank of Kenya (CBK) is said to be closely monitoring the situation and may impose sanctions or direct structural reforms to prevent a recurrence. Meanwhile, the BFIU is pursuing leads that point to a wider criminal syndicate with potential links to other financial institutions.
Public and Industry Reaction
The heist has sparked widespread concern among Kenyans and raised questions about the robustness of internal controls in the banking sector. Financial analysts warn that such breaches, if not decisively addressed, could erode public confidence and destabilize the industry.
Equity Bank has yet to release a comprehensive statement on the matter but has confirmed that internal investigations are ongoing and measures are being taken to strengthen operational safeguards.
