Kenyan Lawyer Under Investigation for Sh1.49 Billion Equity Bank Scam

A High Court advocate is at the center of a widening investigation into a Sh1.49 billion fraud at Equity Bank, Kenya’s second-largest financial institution. 

Lawyer Esther Bitutu Kadiki appeared at Milimani Law Courts today as the Directorate of Criminal Investigations (DCI) sought an extended detention period to probe her alleged involvement in the sophisticated scheme. Detectives presented an affidavit detailing Kadiki's suspected role in facilitating fraudulent transactions that occurred between May and July 2024. 

The prosecution requested 21 days to finalize investigations, emphasizing the need to trace key witnesses and gather further intelligence on a suspected criminal syndicate behind the massive financial loss. The court is expected to rule on the DCI’s application later today. The investigation began when Equity Bank flagged suspicious activity originating from its internal Salaries Remittance General Ledger account. 

Authorities discovered 47 unauthorized transfers, totaling nearly Sh1.5 billion, routed to multiple external accounts while bypassing the bank's internal records. Investigators reveal that login credentials belonging to a senior bank manager, who was on leave at the time, were used to authorize the illicit transfers. According to the DCI, Kadiki played a crucial role in the operation by recruiting companies and individuals whose accounts were used to launder the stolen funds. 

Police believe she is part of a broader criminal syndicate that infiltrated banking institutions to divert funds for personal gain. Intelligence reports suggest she facilitated the creation of fictitious business agreements to justify large cash withdrawals from the beneficiary accounts. Investigators are focusing on the network of financial transactions linked to Kadiki. Documents from NCBA Bank and National Bank of Kenya indicate that Sh38.4 million was funneled into an account held by Inforide Point Limited, a company co-owned by Kadiki and her spouse.

Additional sums were traced to Kadiki & Advocates, her legal practice. The DCI asserts that Kadiki’s reluctance to disclose details about her business dealings further implicates her in the scheme. Authorities argue that her continued freedom could compromise the integrity of ongoing investigations, as she is allegedly withholding the identities of individuals behind the fraudulent agreements, thereby shielding key players in the operation. Her recent extended absence from the country has also raised suspicions of potential evasion of justice.