KCB tightens grip on fraud as 60 employees lose jobs

KCB Group has intensified its internal clean-up on fraud, sending 60 employees packing last year as it ramps up efforts to shield its banking systems and customers from rising financial crime linked to both staff and digital platforms.

The lender says the dismissals were triggered by direct involvement in fraud-related activities targeting the bank and its clients, an increase from 34 employees who were shown the door in 2024 for similar misconduct.

The details are contained in the bank’s latest sustainability report, which also points to shifting fraud patterns and tighter controls across its operations.

The report shows that fraud-related losses dropped to Sh760,000 in 2025, compared to Sh4.5 million the previous year, even as the bank recorded 201 fraud incidents during the period.

KCB says it successfully stopped fraud attempts worth Sh141.1 million, a decline from 339 incidents and Sh212.9 million in blocked losses in 2024.

“We have implemented advanced security measures, including biometric authentication, document verification, selfie matching and enhanced digital onboarding processes,” said KCB Group in its annual sustainability report.

“Real-time monitoring of digital transactions further enhances fraud detection and mitigation.”

Out of the 60 employees dismissed, 50 were based in Kenya, which also accounted for 188 fraud attempts reported within the group. Rwanda followed with seven attempted cases and five staff dismissals. Tanzania and South Sudan each recorded two dismissals, while Uganda had one.

The figures underline how internal fraud remains a persistent challenge for banks, even as they expand digital services and tighten compliance systems. Financial institutions across the region have been increasing surveillance and internal audits to detect staff involvement in suspicious transactions.

Last year, Equity Group also moved against internal misconduct, terminating about 2,000 employees after an ethics review flagged questionable dealings between staff and customers. The probe focused on workers who received funds from clients, colleagues, and related entities into their salary accounts or mobile money wallets.

“Fraud losses declined materially over the past three years, a reflection of the maturity of our digital control environment,” said Equity in its annual report.

Although the bank did not disclose the value of prevented fraud cases, it noted that stronger monitoring systems had improved detection and response. Earlier in the year, Equity revealed it had blocked a major fraud attempt in Rwanda estimated at Sh430 million.

“...98.2 percent of our transactions are on the internet. That is the risk...So, what I need to do is to up the game of my staff and as you saw, all the transactions were reversed because it was detected immediately,” said Equity Group Chief Executive James Mwangi following the incident.

Banks have increasingly turned to artificial intelligence tools and advanced monitoring systems to counter rising fraud threats tied to mobile, card, and internet banking. The shift to digital platforms has expanded access to services but also opened new vulnerabilities for criminals targeting both customers and staff.

Standard Chartered Bank Kenya noted that financial crime remains closely tied to digital channels, particularly phishing and online scams.

“The significant losses recorded during the year were financial crime risk related due to mobile, cards (debit and credit) and internet banking external fraud events,” said Standard Chartered Bank Kenya.

The lender added that it has deployed systems such as ThreatMetrix (TMX) alongside other automated tools to detect and block suspicious transactions in real time.

“Fraud (particularly phishing) remains an area of concern. The bank has deployed several automated solutions to detect incidences of fraud resulting in a significant drop in the number incidences,” it said.