INSIDE THE SH1.5 BILLION EQUITY BANK HEIST: HOW A CITY LAWYER ORCHESTRATED ONE OF KENYA’S BIGGEST BANKING FRAUDS

In what authorities are calling one of the most sophisticated banking frauds in Kenya’s recent history, prominent city lawyer Esther Bitutu Kadiki stands accused of masterminding an elaborate scheme that drained Sh1.5 billion from Equity Bank in just 90 days.

Court documents reveal a complex web of fictitious transactions, proxy companies, and cryptocurrency conversions designed to mask the massive theft.

The Elaborate Scheme

According to court papers filed by the Directorate of Criminal Investigations (DCI), Kadiki allegedly siphoned Sh1,499,465,831 from Equity Bank between May 1 and July 31, 2024.

The funds were systematically extracted from the bank’s internal Salaries Remittance General Ledger Account Number 0001*100774**, then quickly dispersed to several non-Equity Bank accounts with falsified transaction descriptions to conceal their origin.

“The respondent is a member of a larger organised group that is well-structured with every individual assigned his or her duties,” stated Inspector Chrispinus Sore Shibanda of the DCI’s Banking Fraud Investigations Unit in a sworn affidavit presented to Milimani Chief Magistrate Onyina.

Multi-Layered Money Laundering Operation

The investigation has exposed what appears to be a carefully orchestrated operation with multiple phases:

1. Recruitment of insiders : The scheme allegedly began with Kadiki recruiting bank employees who could provide access to internal systems.

2. System penetration : With inside help, the syndicate identified vulnerable accounts and transaction pathways.

3. Proxy network establishment : Kadiki allegedly recruited both individuals and companies whose accounts would be used to launder the stolen funds.

4. Fictitious documentation : As an advocate, Kadiki is accused of drafting fake business agreements between companies to justify large cash movements.

5. Complex layering : The stolen funds were quickly moved through “several layers of intricate financial transactions including bulk withdrawals, transfers to other bank accounts and purchase of crypto currencies,” according to court documents.

Following the Money Trail

Banking fraud investigators have traced at least Sh38 million to accounts directly linked to Kadiki, including those registered to Inforide Point Limited—a company she co-owns with her husband—and Kadiki & Advocates, her legal practice.

Lawyer Esther Bitutu Kadiki in court on May 6, 2025.

During interrogation, Kadiki provided agreements between her companies and eight others, which investigators have connected to transfers exceeding Sh400 million.

However, authorities claim she has been “unwilling to provide information regarding the real faces behind the said agreements,” maintaining she never personally met the individuals involved.

“As an advocate of the High Court of Kenya, such narrative can only be better understood to mean she is protecting those people,” Inspector Shibanda told the court.

The Arrest and Legal Proceedings

Kadiki was arrested on May 5, 2025, after presenting herself to the Banking Fraud Investigation Office in response to summons issued back in October 2024.

Prosecutors argue that her delayed compliance with the summons—spanning over six months—demonstrates flight risk concerns.

Defense lawyer Ken Echesa has applied for bail, noting that Kadiki is expecting a child and already has a young child under her care.

The prosecution has countered by requesting she be remanded for 21 days to allow for completion of investigations.

Chief Magistrate Onyina is expected to rule on the bail application today, May 7, 2025.

Broader Implications for Banking Security

This case highlights significant vulnerabilities in banking systems that allowed such massive fraud to go undetected for three months.

Banking security experts note that access to internal general ledger accounts typically requires multiple authorization levels and oversight.

“For someone to extract Sh1.5 billion from a bank’s salary remittance account over 90 days suggests serious internal control failures or collusion at multiple levels,” said a Banking Security Expert, who spoke on condition of anonymity due to the sensitivity of the ongoing investigation.

Equity Bank has not issued an official statement regarding the fraud, though sources indicate the bank has implemented enhanced security protocols in response to the breach.

A Growing Trend

This case comes amid increasing concerns about sophisticated banking fraud schemes in Kenya.

Just months earlier, authorities investigated what was described as the “Mulot gang” in connection with a Sh6 million fraud at Standard Chartered Bank.

Additionally, the DCI has been investigating bank staff involvement in robberies targeting clients making large withdrawals.

The case against Kadiki represents one of the largest alleged banking frauds in Kenya’s history, with investigators continuing to pursue leads regarding other members of what they describe as a “larger organised group” behind the scheme.

As the legal proceedings unfold, banking regulators are expected to scrutinize internal controls at major financial institutions to prevent similar breaches in the future.