"Anti-fraud measures intensify in Uganda as Equity Group bolsters its efforts, coinciding with broader governance improvements"
Equity Bank, one of Africa's largest banks with a capitalization of $1.3 billion (KES180 billion), is taking decisive action against fraud in its operations in Kenya and Uganda.
The bank, originally a building society in Kenya, has been actively driving anti-fraud initiatives, including a strong internal crackdown on staff misconduct and establishing robust fraud risk management frameworks. This crackdown extended to Uganda soon after sacking over 1,500 staff in Kenya for misconduct, reflecting a region-wide effort to combat fraud and unethical behavior.
Gift Shoko, Managing Director of Equity Bank Uganda, noted that the bank is implementing enhanced whistleblower safeguards, ethics training programs, and backend risk monitoring tools such as AI-driven analytics. The process is anticipated to conclude by the end of July.
In Kenya, the anti-fraud drive has been one of the most assertive in the country's banking sector. Over $15 million was siphoned off through suspicious transactions in the past two years. The clean-up, launched in May, has evolved into one of the most assertive anti-fraud drives in Kenya's banking sector. Disciplinary actions are now in progress for employees implicated in fraudulent activities in Uganda.
Equity Bank's efforts have involved legal enforcement actions as well. The bank has successfully defended its rights in high-profile fraud-related commercial disputes, such as a $10 million syndicated loan in Uganda where fraud claims were dismissed by the High Court.
Despite these moves, significant fraud cases have still surfaced, such as a reported Sh1.5 billion heist linked to rogue staff and external parties in Kenya in mid-2024, which prompted investigations by the Banking Fraud Investigation Unit.
Equity Bank's ongoing efforts include both preventive fraud risk governance and reactive legal and investigative measures to mitigate fraud impacts. The bank has sought talent like a Senior Manager Fraud Risk to develop, implement, and oversee fraud prevention, detection, and response strategies.
The growth and swift transition to digital banking have introduced fresh vulnerabilities, particularly within internal systems and employee conduct. To address these, routine audits, staff performance evaluations, and scrutiny of areas prone to conflict of interest and fraud are being conducted.
Equity Group, Kenya's second-largest lender by assets, has expanded its internal disciplinary efforts to Uganda. Mwangi has pledged to extend the anti-fraud drive across all seven of Equity Group's markets, including Uganda.
In summary, Equity Bank's anti-fraud drive encompasses strengthening internal fraud risk frameworks, extensive staff misconduct crackdowns, legal enforcement to uphold loan agreements and dismiss fraudulent claims, investigative follow-up on major fraud incidents, and a commitment to address fraud risks and improve transparency and security in its operations across both countries. These measures indicate a comprehensive and ongoing commitment by Equity Bank to combat fraud and unethical behavior.
Working within the banking sector, Equity Bank has implemented technology-driven tools like AI-driven analytics to bolster their anti-fraud initiatives. In addition, the bank's strategy in both Kenya and Uganda extends to the finance and business realm, as they seek talent such as a Senior Manager Fraud Risk to develop and oversee fraud prevention, detection, and response strategies.
