KCB Group terminated the employment of 60 staff members last year as it escalated efforts to combat internal fraud, with the affected employees implicated in schemes targeting the bank and its customers. This follows the dismissal of 34 employees in 2024 over similar misconduct.
According to the lender’s latest sustainability report, fraud-related losses were relatively contained, with Sh760,000 written off in 2025 compared to Sh4.5 million the previous year. During the period, the bank recorded 201 fraud incidents, successfully preventing attempted losses amounting to Sh141.1 million. In 2024, however, fraud attempts were higher at 339 cases, with prevented losses totalling Sh212.9 million.
KCB attributed its improved detection capacity to enhanced security systems, including biometric authentication, document verification tools, selfie matching technology, strengthened digital onboarding processes, and real-time transaction monitoring designed to flag suspicious activity.
Regionally, Kenya accounted for the majority of cases, with 50 of the 60 dismissed employees and 188 recorded fraud attempts. Rwanda followed with seven attempts, while five employees were dismissed there. Tanzania and South Sudan each recorded two dismissals, while Uganda had one case.
The issue of staff involvement in fraud continues to challenge the banking sector, prompting several institutions to carry out ethics audits. In a notable case, Equity Group dismissed about 2,000 employees following an internal review that uncovered questionable financial interactions between staff and customers, including transfers into salary accounts and mobile money wallets.
Despite such challenges, banks report that fraud losses have generally declined in recent years, attributed to stronger digital control systems. However, institutions have not always disclosed full details of prevented fraud or exposed risks.
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Financial institutions have increasingly invested in artificial intelligence and advanced monitoring systems to counter both internal and external threats, particularly as digital banking expands rapidly. Earlier this year, Equity Group successfully intercepted a major fraud attempt in Rwanda valued at approximately Sh430 million, with transactions reversed before losses occurred.
With nearly all transactions now conducted digitally in some banks, executives warn that exposure to cyber and staff-related fraud remains high. As a result, institutions are also allocating resources to insurance coverage and risk provisions to cushion against potential losses.
Standard Chartered Bank Kenya has similarly highlighted financial crime risks linked to mobile, card, and internet banking fraud, noting that it has deployed advanced tools such as ThreatMetrix alongside other automated systems to detect and reduce fraudulent activity.
