Kenya’s KCB Group fires staff over fraud as cases drop sharply

KCB Group, Kenya’s largest bank by assets, dismissed 60 employees in 2025 over fraud, nearly doubling the number of staff fired in the previous year, even as the lender reported a decline in fraud incidents and losses.

The lender said in its 2025 sustainability report that the employees were linked to schemes targeting both the bank and its customers, up from 34 dismissals recorded in 2024.

The rise in staff dismissals amid falling fraud cases signals that Kenyan banks are taking a tougher stance on insider crime, using technology and tighter controls to detect misconduct early. 

According to KCB, fraud and forgery losses fell to KES 760,000 ($5,870) in 2025 from KES 4.5 million ($34,762) a year earlier.   Reported fraud incidents declined by more than 40%, from 339 to 201.

The value of attempted fraud blocked by the bank also dropped to KES 141.1 million ($1 million) from KES 212.9 million ($1.6 million) in 2024, suggesting improved detection systems and stronger preventive controls.

“We have implemented advanced security measures, including biometric authentication, document verification, selfie matching, and enhanced digital onboarding processes,” KCB said in the report. “Real-time monitoring of digital transactions further enhances fraud detection and mitigation.”

Kenyan commercial banks have increased investments in technology to fight fraud as internet and digital banking expand, exposing lenders to growing financial and reputational risks. 

Insider threat

KCB’s Kenyan subsidiary accounted for 188 of the 201 reported fraud incidents and 50 of the 60 employees dismissed during the year.

The bank prevented attempted fraud worth KES 100.8 million ($778,378), while its Rwanda subsidiary blocked KES 40.3 million ($311, 196). Rwanda recorded the second-highest number of attempted fraud cases at seven.

Five employees were dismissed in Rwanda, while Tanzania and South Sudan each recorded two dismissals, and Uganda one.

Digital fraud has become one of the banking sector’s biggest operational risks as fraudsters working with insiders target mobile banking, payment cards, and internet banking channels. The trend has forced lenders to invest in fraud detection systems, cybersecurity tools, and insurance cover against operational losses.