Equity Bank fires employees over payroll irregularities in a significant development in the banking sector. Equity Bank has dismissed over 200 employees following an internal investigation into payroll irregularities involving M-Pesa, the country’s leading mobile money platform. The move has sent ripples through the financial industry, raising questions about internal controls, employee conduct, and the robustness of corporate governance in major institutions.
Background of the Payroll Irregularities
The issue centers on irregular payments made to employees’ bank and M-Pesa accounts. According to reports, an internal audit initiated in December 2024 uncovered suspicious transactions, prompting a comprehensive investigation by the bank’s management (1). While the exact amount involved has not been publicly disclosed, sources indicate that the irregularities could run into millions of shillings.
Key Facts
- Number of Employees Affected: Over 200 staff members have been dismissed so far, with more than 1,400 others reportedly under disciplinary review. The total number of dismissals could rise to 2,000 as investigations continue (1, 2).
- Nature of the Irregularities: The audit revealed that certain employees received irregular or unauthorized payments through both bank and M-Pesa channels. While internal collusion is suspected, there is no public confirmation of direct involvement by external fraudsters at this time.
- Departments Involved: Employees from various departments, including some senior managers, have been implicated.
- Disciplinary Process: Dismissed employees have been cited for gross misconduct, unethical receipt of funds, and violation of the bank’s code of conduct. They are entitled to terminal benefits and have a 14-day window to appeal the dismissal (1).
Equity Bank’s Response
Equity Bank has emphasized its commitment to upholding integrity and protecting customer assets. The bank’s swift action in dismissing implicated employees demonstrates a zero-tolerance approach to fraud and unethical behavior. The process is ongoing, and further disciplinary measures may be taken as investigations progress.
Broader Implications for the Sector
This incident underscores the importance of robust internal controls and vigilant oversight in Kenya’s financial sector. It highlights the need for:
- Enhanced monitoring systems to detect suspicious activities,
- Stronger employee training and ethical standards,
- Transparent crisis management to maintain public trust.
Conclusion
The ongoing Equity Bank payroll investigation and resulting dismissals serve as a cautionary tale for the entire financial industry. As the bank continues its internal review, the case is likely to influence how other institutions address fraud prevention, employee accountability, and corporate governance.
References:
- Nairobi Leo: Equity Bank Fires Employees in Masses
- Kenya Times: Equity Bank Fires 200 Kenyan Staff Over M-Pesa Payroll Scandal
Stay tuned for updates as more information becomes available about this developing story and its impact on Kenya’s banking sector.
