When Your Greatest Asset Becomes Your Biggest Risk
Employees are the heartbeat of every business. They deliver the service, drive the innovation, and shape the culture. But as the recent case at Equity Bank revealed, they can also be your biggest risk.
In a bold move, Equity Bank fired 1,200 staff members after uncovering internal fraud exceeding KSh 2 billion (~$15 million). This isn’t just an isolated case—it’s a mirror held up to the rest of Kenya’s private sector.
And what it reflects isn’t pretty.
The Reality of Employee Fraud in Kenya
In 2019, the Kenya Private Sector Alliance (KEPSA) released a survey of 1,200 businesses. The numbers were alarming:
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Businesses lose nearly 13% of revenue to employee-related fraud.
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57% of respondents named fraud as the most common form of corruption.
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22% of businesses reported losing $1M to $50M per year.
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71% of SMEs said they lose $10,000–15,000 yearly to bribery and fraud.
To put it in perspective: the global average for fraud-related revenue loss is 5%. In Kenya? It’s 12.85%—more than double.
That’s not just an economic issue. It’s a risk to business continuity.
The Hidden Threat Isn’t Always External
What’s even more disturbing is that these losses aren’t caused by anonymous hackers or rival companies. The threat is often internal—employees falsifying invoices, manipulating records, colluding with vendors, or outright stealing inventory and cash.
In many cases, HR teams and employers are aware but stay silent to protect brand image or avoid legal battles. These quiet exits only shift the problem to another business. The cycle continues.
Why Background Checks Are No Longer Optional
If you’re hiring without a proper background screening process, you’re flying blind.
Background checks help you:
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Spot red flags early, before onboarding someone with a history of misconduct.
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Validate credentials, education, and references.
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Encourage a culture of accountability by showing you take integrity seriously.
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Avoid hiring costly repeat offenders—many of whom bounce from job to job unchecked.
This isn’t about micromanaging. It’s about protecting your people, your clients, and your bottom line.
A Thank You to the HR Heroes Doing It Right
We want to take a moment to appreciate the HR professionals and employers who provide honest, unbiased feedback during reference checks. You are the gatekeepers of integrity in the job market.
When you speak up—truthfully and professionally—you’re not just protecting your company. You’re helping another one make a smarter hire. You’re giving deserving candidates a fair shot. And you’re strengthening the business community as a whole.
We encourage more of this. Transparency is a quiet but powerful weapon against fraud.
Peleza: Helping You Hire With Confidence
At Peleza, we work with businesses across Kenya to deliver accurate, fast, and compliant background checks. Whether you’re screening a new hire or reviewing existing staff, our tools help you make informed decisions and reduce the risk of employee fraud.
With Peleza, you can:
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Minimize financial losses from internal fraud.
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Protect your company’s reputation.
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Hire people who align with your values and culture.
Peleza Employee Background Checks Screening Includes;
Peleza offers thorough background screening services designed to reduce hiring risks and help businesses in Kenya build trustworthy teams. Each check is tailored to the role, industry, and regulatory needs of your organization. Our standard background checks include:
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Identity Verification
Confirms the authenticity of national IDs, passports, or other official documents to ensure the individual is who they claim to be. -
Criminal Record Checks
Searches through national databases and official records to uncover any past or pending criminal cases. -
Employment History Verification
Verifies previous roles, dates of employment, positions held, and reasons for leaving—directly with past employers. -
Academic and Credential Verification
Confirms certificates, degrees, and qualifications from accredited institutions to detect fraud or misrepresentation. -
Reference Checks
Engages with former supervisors or HR personnel to gather unbiased insights into the candidate’s conduct, reliability, and work ethic. -
Credit History Checks (where relevant)
Provides insight into a candidate’s financial responsibility, especially for roles that involve managing company funds. -
Directorship and Conflict of Interest Screening
Identifies whether the candidate holds any business directorships or affiliations that could lead to conflicts of interest. -
Global Watchlist Screening
Flags individuals listed on international sanctions, PEPs (Politically Exposed Persons), or other watchlists—useful for compliance and risk-sensitive roles.
Each of these checks is conducted with speed, discretion, and full legal compliance—giving you confidence and clarity before you make a hire.
Final Thoughts
Employee fraud in Kenya is a growing concern—but it’s not unbeatable. By combining stronger internal controls with smart hiring powered by background checks, businesses can protect themselves and build teams they trust.
Ready to strengthen your hiring process?
Explore Peleza’s background screening services and make your next hire your best one. Talk to our expert to customize a solution for your organization’s background checks, KYC, KYB, and due diligence services.
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