Inside KCB Bank’s fraud: 60 employees fired amid surge in insider crime

A growing web of internal fraud within KCB Group has led to the dismissal of 60 employees in 2025, nearly double the number fired the previous year, highlighting the persistent threat posed by insiders even as overall fraud incidents and losses declined.

The employees were linked to fraud schemes targeting both the bank and its customers, according to KCB’s latest sustainability report.

The 60 employees sacked in 2025 over fraud-related activities are nearly double the 34 staff members fired the previous year, exposing the scale of insider threats facing Kenya’s largest lender by assets.

According to the bank’s latest sustainability report, the employees were linked to schemes targeting both KCB and its customers.

The sharp rise in dismissals expose the extent of entrenched web of crime within the lender’s internal structures.

KCB reported 201 fraud incidents in 2025, down significantly from 339 cases recorded in 2024.

Fraud and forgery losses also fell sharply to Sh760,000 from Sh4.5 million a year earlier, indicating that more attempted crimes were detected before money was lost.

The bank thwarted fraud attempts valued at Sh141.1 million during the year, compared to Sh212.9 million in 2024. KCB Kenya accounted for the bulk of the cases, recording 188 fraud incidents and 50 of the 60 employee dismissals. The subsidiary also blocked attempted fraud worth Sh100.8 million.

Rwanda emerged as the second-most affected market, with seven attempted fraud cases and five staff dismissals. Tanzania and South Sudan each recorded two dismissals, while Uganda recorded one.

The figures suggest that while fraud attempts remain a threat, the bank has become more effective at detecting schemes before they result in substantial losses.

The increase in employee dismissals points to deeper scrutiny of insider involvement, a long-standing challenge in the banking sector where staff can exploit privileged access to customer accounts, systems and sensitive information.

KCB’s Kenyan subsidiary emerged as the epicentre of the fraud cases, accounting for 188 of the 201 incidents reported across the group.

It also recorded 50 of the 60 employee dismissals, indicating that most of the misconduct was concentrated in the bank’s largest market.

The lender said it blocked attempted fraud worth Sh141.1 million during the year, compared to Sh212.9 million in 2024.

Of that amount, Sh.8 million was prevented by the Kenyan subsidiary alone, while KCB Rwanda blocked Sh40.3 million.

Rwanda recorded the second-highest number of attempted fraud cases and dismissed five employees linked to misconduct. Tanzania and South Sudan each terminated two employees, while Uganda dismissed one staff member.

To combat the growing sophistication of fraud schemes, KCB said it has invested heavily in technology-driven controls, including biometric authentication, document verification, selfie matching and enhanced digital onboarding systems.

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

The banking industry has increasingly come under pressure to strengthen safeguards against insider fraud as digital banking channels expand.

Fraudsters often collaborate with employees to exploit weaknesses in mobile banking, internet banking and payment systems, exposing lenders to both financial losses and reputational damage.