“I Will Be Ruthless” – Mwangi Warns As Equity Fires 1,200 Employees

Nairobi, May 29, 2025 – In an unprecedented move that has sent shockwaves through Kenya’s banking sector, Equity Group on Wednesday terminated the employment of 1,200 staff members in a single day following an internal investigation that uncovered suspicious financial transactions involving employee accounts.

The mass dismissals represent the largest single-day staff purge in the history of Kenya’s banking industry, as the country’s second-most profitable bank intensifies its crackdown on internal fraud and corruption.

“I will be ruthless” – CEO warns

Speaking exclusively to reporters, Equity Group Managing Director and CEO James Mwangi adopted an uncompromising stance, declaring he would be “consistently ruthless” in weeding out unethical employees.

“It doesn’t matter how many I will lose. I don’t even care. I have just started the journey,” Mwangi stated during a press briefing at the bank’s Upper Hill headquarters.

“I will protect the customers and the bank. If you have ever eaten mama mboga’s chicken, the moment of reckoning has come.”

The CEO’s reference to “mama mboga’s chicken” appeared to be a metaphor for employees who have taken advantage of small-scale traders and informal business operators – a key customer segment for Equity Bank.

The terminations followed a comprehensive investigation launched on April 14, which scrutinized suspicious transactions flowing through employees’ bank accounts and M-Pesa mobile money wallets.

The probe revealed a pattern of staff members receiving unauthorized payments from customers and entities linked to the bank.

According to Mwangi, the investigation uncovered various corrupt practices including:
– Employees receiving money from customers to approve loan applications
– Staff soliciting payments to offer preferential deposit rates
– Workers accepting “thank you fees” immediately after loan disbursements
– Foreign exchange manipulation schemes

“If you gave a loan and the first transaction from the loan money is to your account, you won’t even want to come before the panel,” Mwangi explained, highlighting the sophistication of the bank’s monitoring systems.

Controversial show cause letters spark staff outcry

The mass terminations represent just the tip of the iceberg in what sources describe as an increasingly aggressive internal purge.

More than 1,400 employees are currently facing disciplinary hearings following the issuance of show-cause letters, according to recent reports.

However, insider accounts paint a troubling picture of the bank’s investigative process.

According to affected employees, staff are being questioned about transactions as small as Sh200, with legitimate family transfers coming under scrutiny.

One particularly concerning case involves an employee who was terminated despite providing documentation proving that money received was from her sister.

“She even provided proof that the person who sent her the cash is her sister, but she was told it was a fraudulent transaction,” revealed an insider familiar with the proceedings.

Employees are reportedly sharing personal documents including identification cards and birth certificates of family members to prove legitimate relationships, yet many find their explanations dismissed as insufficient.

The situation has created panic among staff, with some employees who received commendation letters for good performance as recently as late 2024 now facing termination without clear justification.

The 1,200 affected employees have been given a two-day ultimatum ending Friday to prove their innocence or face immediate termination.

This represents the latest wave of dismissals following the sacking of 287 workers earlier this month after auditing 708 staff members, including senior managers.

The bank has assured terminated employees that they will receive their full salaries until their last day of work, payment for outstanding leave days, and one month’s notice pay, minus any outstanding debts to the bank.

Billion-shilling fraud catalyst

The crackdown was triggered by a devastating Sh1.5 billion fraud that hit the bank through a sophisticated scheme involving insider collaboration.

The theft, executed over 90 days, saw fraudsters penetrate the bank’s IT systems using credentials belonging to David Muchiri Kimani, a manager at the Group Processing Centre.

Over 40 fraudulent transactions totaling Sh1.499 billion were processed before the funds were transferred to rival banks.

The bank is also pursuing recovery of an additional Sh386.5 million stolen by another rogue employee.

Questions over due process and fairness

The aggressive approach has raised concerns about due process and fairness in the bank’s internal investigations.

Insiders suggest that the crackdown may be extending beyond legitimate fraud cases to include routine family financial transactions and normal workplace interactions.

Some employees believe the mass layoffs are connected to cost-cutting measures, particularly following Mwangi’s reported agreement with Mastercard to absorb scholarship graduates for cheap labour, though the bank maintains that terminated positions are being replaced with new hires.

The scale of the investigation represents an unprecedented internal audit in Kenya’s banking sector, with nearly 10% of Equity’s total workforce of 14,000 employees either terminated or under investigation.

The mass terminations come at a time when Kenya’s banking sector faces increasing scrutiny over internal controls and corporate governance. Customer complaints and “whispers of concern” about staff integrity prompted the comprehensive audit, according to Mwangi.

“The currency of the financial sector is trust,” the CEO emphasized. “A brand is a promise kept. An organization is built by culture and the conduct of its staff.”

Mwangi announced that staff behavior audits would become a permanent fixture at Equity, similar to performance appraisals.

The investigation will be extended to all of the bank’s nearly 14,000 employees across seven countries where it operates.

The bank has engaged top law firms and audit consultancies to conduct these stealth integrity checks, marking a significant shift in how Kenya’s financial institutions monitor internal conduct.