KCB Fires 22 Employees Involved In Fraud: "26 Resigned During Investigation"

• KCB Group released its 2023 integrated report, noting that 22 employees were terminated, while 26 others resigned during investigations for fraud
• KCB Group successfully reduced its exposure to fraud by 70.5% in 2023, with a focus on controlling internal and mobile banking-related fraud
• The company attributed this reduction to continuous efforts to review and enhance control standards and implement stronger fraud prevention measures
• KCB Group emphasised the importance of collaboration with government and industry bodies to strengthen system resilience against cyber-attacks and reduce the impact of fraud

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

KCB Group released the integrated report for 2023, which highlights the group's consolidated financial statements, shareholder information, and group sustainability report.

According to the report, KCB Group employs 12,221 total employees, of which 51% are female employees.

KCB fraud cases

Several banks in Kenya have been fraught with cases of fraud, and according to the company, employees who were found culpable of fraud were terminated.

KCB's exposures to successful fraud were reduced by 70.5% in 2023 compared to 2022, with the main drivers being internal and mobile banking-related frauds.

In the report, KCB said that the reduction was attributed to our continuous actions to reduce fraud losses through the constant review and enhancement of control standards.

"We handled 48 disciplinary cases related to fraud. Out of these, 22 employees were terminated after going through the disciplinary process, while 26 resigned during the investigation process," KCB said in the report.

The lender further explained that it had improved controls on App sign-ups and Vooma wallet deposits to address fraud cases.

The company also noted that 249 fraud incidents were identified and frustrated.

"Our policies ensure that the disciplinary process is fair and this process continues to be an effective means of deterrence of fraudulent activities. In addition, we conducted employee training in the areas that had process lapses and enhanced the control environment for the affected areas," KCB added in the report.

KCB emphasised the need for continued collaboration with a range of government, community, and industry bodies to strengthen system-level resilience and reduce the possibility of cyber-attacks and the impact of fraud and scams on the community.

Paul Russo was named the 2024 African Business Leader of the Year

In other related news, KCB Group CEO Paul Russo was named the 2024 African Business Leader of the Year at the 14th annual African Business Leadership Awards.

Under Russo's leadership, KCB Group became the most profitable bank in East Africa after it recorded a KSh 16.5 billion Q1 net profit.

KCB Group was the first financial institution in the region to exceed the KSh 2 trillion mark in asset size after reporting assets worth KSh 2.1 trillion.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.