Equity Group, Kenya’s second-largest bank by assets, has extended its internal review efforts to Uganda, building on its recent dismissal of over 1,500 employees in Kenya due to alleged misconduct and fraud.
In Uganda, the bank has launched a “culture of accountability” initiative—part of a broader campaign aimed at enhancing ethical standards, eliminating conflicts of interest, and strengthening operational oversight across its regional branches. Equity Bank Uganda Managing Director Gift Shoko emphasized that the campaign isn’t tied to any specific incident but reflects the institution’s strategic commitment to robust governance.
“We’re conducting thorough audits, evaluating staff performance, and proactively identifying risks related to conflicts of interest and fraud,” said Shoko. “This isn’t about retribution—it’s about fostering integrity and ensuring clarity in expectations. However, where trust is compromised, we will act.”
As part of the initiative, the bank is introducing whistleblower support, ethics workshops, and advanced risk monitoring using AI-driven tools to detect unusual account activity. Shoko noted: “We're scrutinizing every transaction and deposit. The findings in Kenya were alarming, and our priority is transparency.”
These concerns stem from a massive anti-fraud investigation in Kenya that revealed extensive cooperation between bank employees and fraudsters, resulting in the loss of an estimated $15 million over two years, some of which was moved to offshore accounts.
Equity Group CEO James Mwangi explained that staff were terminated not only for large-scale fraud but also for minor suspicious transactions. In May, he declared, “This isn’t a toll booth. If you’ve ever eaten Mama Mboga’s chicken, the moment has come.”
The sweeping reform began in May and is now considered one of the most significant banking clean-ups in Kenya’s history. Mwangi has pledged to implement similar governance improvements across all Equity Group markets, including Uganda, Rwanda, Tanzania, South Sudan, and the DRC.
In Uganda, the bank is undertaking a comprehensive review supported by legal advisors and independent auditors. Shoko said staff facing disciplinary scrutiny are being given the chance to respond. “Some have provided explanations, others haven’t—appropriate steps are being taken,” he shared. The review is expected to conclude by the end of July.
Originally established as a small building society, Equity has evolved into a major financial institution with a $1.3 billion (KES180 billion) valuation, serving primarily low-income clients. However, this rapid expansion and transition to digital services have introduced new risks tied to internal systems and employee conduct.