Equity Bank, Kenya’s second-largest lender, is at the center of a major theft. KSh 1.5 billion.
The money, meant for employee salaries, was stolen last month in a scheme involving an insider and his father. It was moved through 47 suspicious transactions to different bank accounts, raising alarms when it failed to match the bank’s records.
The bank’s internal controls detected the irregularities, prompting Equity Bank to report the theft to the Banking Fraud Investigations Unit (BFIU).
The BFIU arrested David Machiri Kimani, a 39-year-old bank manager, and his father, Joseph Kimani Machiri. David Kimani was on leave during the heist, but the transactions were carried out using his credentials. The authorities have requested 21 days to investigate further.
The stolen funds were transferred through newly created accounts under new businesses. Investigators believe that Joseph Machiri, a founding member of the Murang’a County Assembly, helped his son in carrying out the crime.
Previous Equity Bank Heists
This incident is not the first time Equity Bank has been targeted. In mid-April 2024, hackers stole Ksh 179 million (US$ 2 million) from the bank in a debit card fraud case, leading to the arrest of 20 suspects.
Around the same time, Ugandan police arrested a former Equity Bank executive and three others over a $16 million fraud involving stock loans and agent float financing. Several former employees were also charged with money laundering and conspiracy to defraud in a Kampala court.
In 2021, a Rwandan court sentenced eight Kenyans and a Ugandan to eight years in prison for hacking into Equity Bank in 2019. The group used insiders and local account holders to steal large sums before they were caught.
This recent heist raises serious concerns about the security of banking operations in Kenya and the region.
By Vivian K.