Equity Bank MD James Mwangi Advises Customers Against Giving Tips to Staff, Buying Lunch
- Equity Bank managing director (MD) James Mwangi noted that giving gifts to employees amounted to a conflict of interest
- The financial institution is investigating alleged employee fraud after their bank and M-Pesa accounts raised suspicions
- Mwangi explained that the staff behaviour audit seeks to safeguard customers’ savings and uphold the bank’s reputation
Japhet Ruto, a journalist at TUKO.co.ke, brings over eight years of experience in reporting on finance, business, and technology, delivering insights into economic trends in Kenya and globally.
Equity Bank managing director (MD) James Mwangi has responded to reports of massive layoffs at the bank, which resulted in 1,200 employees receiving sacking notices.
Source: Twitter
Mwangi revealed that the lender subjected all its staff to an audit following the loss of KSh 1.5 billion.
Why did Equity advise customers against tips?
The MD warned customers against offering tips or gifts to staff, warning that this could create conflicts of interest and undermine the bank’s commitment to professionalism and impartiality.
"We have zero tolerance for anyone who is conflicted, so I want to urge consumers not to jeopardise employees because doing so puts their careers in danger," Mwangi told Citizen TV.
The financial institution promised to provide a toll-free number so that clients could voice their frustrations with employees who obstruct service delivery.
"Customers should receive excellent service and be given the freedom to pursue their goals without any restrictions. Therefore, there is no obligation for customers to tip workers or buy them lunch because doing so could put staff members’ jobs at risk," Mwangi stressed during the release of the bank's 2025, quarter one results.
Why did Equity Bank issue sack notices?
The bank is investigating alleged employee fraud after their bank and M-Pesa accounts raised suspicions.
As of 2024, the lender employed 14,000 people, up from 13,102 in 2023.
The 1,200 employees who received sack notices were given two days to prove their innocence.
Business Daily reported that dismissing the implicated workers could worsen the layoffs that started in mid-May.
Source: Twitter
This followed the bank's termination of 287 employees, including senior managers, after probing 708 staff members in April.
Mwangi explained that the staff behaviour audit seeks to safeguard customers’ savings and uphold the bank’s reputation.
He disclosed that the investigation focuses on staff members who collect money from clients or customers via their M-Pesa wallets or bank accounts.
The bank has been grappling with multiple fraud cases concerning the integrity of its employees.
It engaged a group of five experts in May 2024 to assist in reducing the growing number of fraud cases and cybersecurity risks.
How many employees did KCB fire?
In a separate story, KCB Group revealed that 26 of its workers quit amid fraud investigations, and 22 employees were fired.
In 2023, KCB Group minimised its fraud risk by 70.5% by concentrating on reducing fraud linked to internal and mobile banking.
The lender noted it would strengthen fraud prevention procedures and improve control standards.
It highlighted the importance of collaborating with government and business organisations to strengthen system resilience against cyberattacks and reduce the impact of fraud.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
