KCB Group has dismissed 34 employees across its regional operations for fraud and misconduct as part of a broader campaign to combat rising financial crime within the banking sector.
In its 2023 Sustainability Report released in August, the bank confirmed that the move aligns with its “zero-tolerance policy on tax evasion, fraud, and facilitation of unlawful conduct.” The statement emphasized that the policy applies to all employees, agents, and third parties operating on behalf of the group.
Of the 34 employees terminated, 25 were based in Kenya and nine in Rwanda. The crackdown comes amid a sharp increase in cybercrime targeting both traditional and mobile banking services across East Africa.
How is KCB Responding to Rising Bank Fraud?
According to the report, KCB successfully blocked 339 fraud attempts in 2024, protecting Ksh212.9 million in customer deposits, an increase from 249 blocked attempts in 2023. The bank noted that the growing sophistication of financial criminals has pushed it to adopt advanced security technologies.
“The planned implementation of a new mobile banking platform, leveraging AI and machine learning models, aims to enhance customer security and combat fraudulent activities,” KCB said in its report.
The Central Bank of Kenya (CBK) revealed that sector-wide losses from cybercrime and fraudulent wire transfers hit Ksh1.59 billion in 2024, nearly four times the Ksh412 million lost the previous year. Despite efforts to tighten internal controls, financial institutions remain highly vulnerable to digital scams.
Why Is Mobile Banking Fraud Growing So Fast in Kenya?
CBK data shows that mobile banking fraud jumped by 344% in 2024, with criminals stealing Ksh810.68 million, up from Ksh182.41 million in 2023. Reported fraud cases more than doubled to 353 incidents from 173 the previous year.
The regulator has warned that sustained cyberattacks could push some banks below required capital levels, as losses continue to erode operational stability.
“Successful attacks lead to an increase in operational cost to restore services and a decline in revenue because of distributed denial of services,” CBK stated. “The losses will lead to capital decline, leading some banks to fail the test in terms of their capital dropping below the required minimum.”
KCB’s decision to fire employees involved in hacking and fraud underscores a growing challenge for Kenyan banks, balancing innovation and accessibility in mobile finance while staying ahead of increasingly sophisticated cyber threats.
By Lucky Anyanje