A key suspect in the Sh1.49 billion fraud at Equity Bank, John Karima Wainaina, was arrested by authorities on November 9 at Jomo Kenyatta International Airport upon returning from China. His arrest follows an extensive surveillance operation by the Directorate of Criminal Investigations (DCI) and the National Intelligence Service (NIS), who have linked him to a highly organized criminal network involved in banking fraud, cybercrime, and money laundering.
Wainaina’s arrest follows the earlier detention of David Machiri Kimani, an Equity Bank manager at the Group Processing Centre’s Salary Processing Unit, who allegedly enabled over 40 fraudulent transactions. These unauthorized transfers directed funds to various competing banks, with investigators believing Wainaina recruited Machiri into the scheme.
Court documents have revealed that the fraud was discovered on July 10 when Equity Bank’s Internal Control Department flagged suspicious transactions in their salary account system. Throughout June 2024, 47 unauthorized withdrawals were made, disguised as legitimate payroll transactions. The stolen funds were transferred to accounts connected to Wainaina and his proxy companies.
In light of the evidence, the court granted the banking fraud unit a 10-day detention period to conduct a thorough forensic examination of Wainaina’s electronic devices, including communications and CCTV footage that reportedly show him orchestrating the fraud and receiving stolen funds.
Prosecutor Sonia Njoki emphasized the need to keep Wainaina in custody, as releasing him prematurely could hinder the ongoing investigation and compromise key evidence. Wainaina remains detained at Kileleshwa Police Station, where he is being questioned, while his accomplice, Machiri, has gone into hiding.
Machiri’s legal team alleges he was forcibly removed from his residence in Thogoto, Kiambu County, with claims of a similar incident involving his father in Murang’a. Due to his failure to appear in court and comply with reporting requirements, the Director of Public Prosecutions has requested an arrest warrant for Machiri.
The investigation revealed that many of the accounts receiving the stolen funds were linked to newly established businesses, suggesting a premeditated scheme. The next court proceedings are scheduled for January 21, 2025, as the investigation continues.
