A Shocking Heist Rocks Equity Bank
Equity Bank, Kenya’s second-largest financial institution, fell victim to a massive theft. On July 10, 2024, the bank’s internal control team uncovered a series of suspicious transactions that led to the loss of a staggering Sh1.5 billion.
This amounts comes to $ 11,632,860 USD.
This wasn’t your average bank robbery. The culprits didn’t use guns or masks. Instead, they exploited the bank’s digital systems to pull off one of the biggest bank heists in Kenya’s history.
The theft involved 47 withdrawals from the bank’s payroll account. The money, meant for employee salaries, vanished into multiple external accounts.
What made this heist unique was the lack of corresponding credits – a crucial element in normal bank transfers.
This daring scheme has sent shockwaves through Kenya’s banking sector. It raises serious questions about digital security in financial institutions.
How could such a large sum disappear without immediate detection? What does this mean for the safety of your money in banks?
Manager’s credentials used in bank heist
The Sh1.5 billion theft from Equity Bank involved using a manager’s login details. David Machiri Kimani worked at the Salary Processing Unit. His credentials processed huge transactions while he was on leave.
The money moved quickly to many other bank accounts. This raised red flags in Equity’s systems. The internal team spotted odd activity in the payroll account on July 10.
Some key details:
- 47 withdrawals happened from the salary account
- No matching credits appeared on Equity’s side
- Sh1,545,887,140.49 total was taken
Equity’s security chief reported it to police fraud investigators the next day.
Mr. Kimani became the main suspect. On August 12, armed men took him from his home while his family was at church.
Later that night, another group grabbed Mr. Kimani’s father from his house. They cut the power and forced their way in. Security footage shows the men wore masks and carried guns.
The police say no one reported these incidents. Mr. Kimani’s wife is also missing. Her phone is off, worrying the family and their lawyer.
Court papers reveal more about the scheme:
- It started at Britam Towers
- Multiple bank departments were involved
- Mr. Kimani took sick leave in early June
- Most recipient accounts were new
- Money moved again quickly after being deposited
- Many recipient accounts were linked to newly registered businesses
Investigators think these companies were made just to get the stolen cash.
The complex plot shows how bank insiders can abuse their access, highlighting the need for stronger security checks, even for high-level staff.
Who got the money?
The Sh1.5 billion heist at Equity Bank has left many wondering where the cash ended up. Investigators are looking into several accounts that got the stolen funds. These accounts had no clear source for the money they received.
The businesses linked to these accounts are under scrutiny. Detectives think they were set up just to get the stolen cash. This gave the thieves a way to take out their loot.
The Banking Fraud Investigation Unit is working hard on this case. They asked a court in Nairobi for more time to look into it. They want to keep a banker in custody for 21 days while they finish their work.
The investigators say they need to protect people’s savings. They worry that this fraud could hurt Equity Bank and its customers. This includes local people, international clients, and even government entities.
The police are focusing on two main crimes:
- Money laundering
- Stealing by a servant
They’re in the process of tracking down everyone involved in this scheme. It’s a complex case that needs careful investigation to uncover all the details.
Risk of fleeing
Law enforcement believes Mr Kimani, the main suspect, may try to leave the country if granted bail. They point to his valid passport as a key factor.
The police want to search Mr. Kimani’s homes. He owns property in two counties – Kiambu and Murang’a. Investigators think these locations could hold important evidence.
Mr. Kimani’s father is also under scrutiny. He reportedly has government contracts at both county and national levels. This connection adds to the complexity of the case.
The police asked to hold Mr. Kimani for 21 days. They wanted to keep him at Kileleshwa police station. However, the court didn’t agree. Instead, they let Mr. Kimani out on bond.
Common questions about the Equity Bank heist
How did thieves break into Equity Bank’s systems?
The thieves used the login details of a bank manager to access Equity Bank’s systems. They made 47 withdrawals from the payroll account without proper authorization. This happened while the manager was on leave. The criminals quickly sent the money to accounts at other banks.
What’s new in the Equity Bank robbery investigation?
Police arrested David Machiri Kimani, an Equity Bank manager, on August 12. His father, Peter Kimani Machiri, was also taken by armed men later that night. Investigators think both men may be involved in the crime. Mr. Kimani’s wife is still missing. The family’s lawyer is worried about her safety.
How much did the Equity Bank robbers steal?
The thieves stole 1.5 billion Kenyan shillings from Equity Bank. This money was meant for employee salaries and other payments. It’s a huge loss for Kenya’s second-largest bank.
What is Equity Bank doing to stop more thefts?
Equity Bank reported the crime to the Banking Fraud Investigation Unit right away. They’re working with police to find out exactly what happened. The bank will likely review its security systems and procedures to prevent future thefts.
Have police caught anyone for the Equity Bank robbery?
Yes, police have made some arrests. They took David Machiri Kimani, an Equity Bank manager, into custody on August 12. His father was also taken by armed men later. Police think both may be involved in the crime. The investigation is still ongoing.
How does this theft affect Equity Bank customers?
The stolen money came from a payroll account, not individual customer accounts. However, such a big theft could affect the bank’s finances.
Customers might worry about the safety of their money.
Equity Bank will need to reassure them and improve security to keep their trust.
