In one of Kenya’s boldest financial crimes in recent history, city lawyer Esther Bitutu Kadiki stands accused of playing a central role in a staggering Sh1.49 billion scandal that rocked Equity Bank and shook the country’s banking sector.
Bitutu, an advocate of the High Court, was arraigned at the Milimani Law Courts on May 6. Detectives from the Directorate of Criminal Investigations (DCI) sought more time to detain her as they continued with investigations into what has been described as “a highly sophisticated bank heist”.
Her arrest on May 5 followed months of surveillance and mounting evidence implicating her in a well-coordinated criminal syndicate that allegedly siphoned nearly Sh1.5 billion from Equity Bank’s internal salary account. According to Equity Bank, the breach occurred between May 1 and July 31, 2024, when Sh1,499,465,831.29 was fraudulently transferred from its Salaries Remittance General Ledger account.
The bank’s Internal Control Department unearthed the fraud, discovering 47 unauthorised transactions routed to various non-Equity bank accounts. The transactions were characterised by fictitious narrations and misleading descriptions, concealing their origin and purpose.
What alarmed investigators further was the use of log-in credentials belonging to a senior bank manager who was on leave at the time — pointing to an insider-driven scheme.
The DCI, in an affidavit presented in court, described Bitutu as a key player in an elaborate criminal enterprise targeting financial institutions. Chief Inspector Chrispinus Sore Shibanda of the Banking Fraud Unit told the court that the lawyer’s role extended beyond legal counsel.
“I have gathered information which identifies Bitutu as an integral player in the planning and execution of the fraudulent activities, which benefited her directly and through proxies,” Shibanda said.
According to the affidavit, Bitutu allegedly helped establish fake companies and opened multiple bank accounts used to launder the stolen money. She is also accused of drafting false commercial agreements to justify large cash withdrawals from these accounts, disguising the transactions as legitimate business deals.
In court, Bitutu claimed she did not know the individuals behind some of the firms she represented, a statement dismissed by investigators as evasive and inconsistent with her duties as a legal professional. One such company is Inforide Point Limited, which Bitutu co-owns with her husband.
Bank statements from NCBA show that Sh38.4 million of the stolen money was channeled into Inforide Point’s account. Additional funds were traced to Kadiki & Advocates, her law firm account at the National Bank of Kenya.
Preliminary investigations revealed that the syndicate used complex money laundering tactics such as layering—moving money through numerous transfers, bulk withdrawals, and cryptocurrency conversions.
This technique made tracing the funds difficult, especially as some of the money was reportedly moved overseas. Bitutu provided an agreement involving her firm and eight other companies linked to over Sh400 million in suspicious transfers to support her innocence.
But the DCI dismissed this as insufficient and noted the timing of the transactions raised more questions than answers. Police believe Bitutu is part of a well-structured syndicate with specific roles assigned to each member—from recruiting rogue bank staff and IT specialists to creating front companies for laundering operations.
“I have information that lawyer Bitutu is a member of a larger organised group that is well-structured, with each individual assigned specific roles ranging from recruitment of targeted bank staff, penetration of the bank system, to identifying and recruiting proxy persons and companies to launder proceeds of crime,” said Inspector Shibanda.
Investigators noted that Bitutu had been summoned by the DCI multiple times since October 2024 but failed to present herself, later claiming prolonged overseas travel — an explanation they described as “unsubstantiated and possibly intended to evade arrest”.
The Equity Bank scandal has revealed systemic vulnerabilities in Kenya’s financial institutions and the growing threat of insider fraud. That such a massive sum could disappear over months without detection has raised serious concerns about internal monitoring and security protocols in top-tier banks.
The DCI has said it will continue tracing the stolen funds, identify additional members of the syndicate, and increase scrutiny on financial crimes involving professionals with privileged access to sensitive banking systems. Bitutu was released on a Sh300 million personal bond as detectives finalise investigations.
– By Nancy Gitonga
This article was first published in the May–June 2025 issue of Nairobi Law Monthly. Get your free copy here: https://online.fliphtml5.com/skrtei/wgqy
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