On July 12, last year, Mr David Machiri Kimani, a manager at Equity Bank, was presented to Milimani law courts on accusations of abetting the theft of Sh1.5 billion from the lender.
Earlier on July 10, the internal control department at Equity Bank had detected a flurry of suspect transactions from the bank's salary account.
A total of 47 withdrawals were made from the bank's salary account and the funds were quickly transferred to several accounts in other banks.
But corresponding credits - details of the transaction such as name of the individuals or entities exchanging funds, the amount and source of the cash- which are footprints to confirm that everything is above board, were fictitious.
These multiple transactions raised suspicion from internal controls team reviewing them for confirmation details and upon closer scrutiny the theft of Sh1.5 billion was uncovered.
The following day, July 11, the bank, through the head of security, Kevin Mwangi, reported the theft to the Banking Fraud Investigation Unit (BFIU) at the Directorate of Criminal Investigations (DCI).
Equity Bank Manager David Machiri Kimani.
Photo credit: Pool
According to authorities, the credentials of Mr Machiri, the bank’s manager at the Group Processing Center, Salary Processing Unit, had been used to process the transactions totalling Sh1,545,887,140.49.
As a result, Mr Machiri, 39, who was on leave at the time, was arrested and arraigned before the Milimani law courts on July 12 with police seeking to detain him for 21 days.
Mr Bonface Maina, a police officer attached to BFIU, in a supporting affidavit, disclosed the probe into alleged criminal offences of money laundering and stealing by servant.
“The applicant (DCI) further avers that the fraudulent debiting of the General ledger account with Sh1, 545, 887,140.49 leads to an economic sabotage to the Equity Bank of Kenya limited as a financial service provider which puts risk of loss to local, international and government entities,” the application read.
Abduction caught on CCTV: Relatives of Equity Bank heist suspects speak out
However, the court never granted police permission to detain him but instead released him on bail.
On Sunday, August 11, 2024, as the rest of his family was in church, Mr Machiri was seized from his Thogoto home in Kiambu by gunmen believed to be security agents. The banker has been missing since.
At around 11pm on the same night, another team of armed, hooded men stormed into the Mathioya home of Mr Peter Kimani Machiri, the banker’s father. This raid was captured on CCTV and the footage was leaked online. Mr Kimani, who is a former Murang’a member of county assembly, was, however, later released because of public pressure.
Reports about the investigation into the heist and the whereabouts of the prime suspect disappeared from public spotlight.
Fast forward to October, last year. DCI detectives identified another suspect, city lawyer Ms Esther Bitutu Kadiki. They believe she facilitated the funneling of cash to multiple accounts held by other individuals and companies including some in which she had a direct interest in.
Ms Bitutu was summoned to appear for questioning by the banking fraud detectives in October. But she never showed up. She only turned up after seven months.
And when she presented herself to the banking fraud investigations office on May 5, 2025, she was promptly arrested.
The lawyer told detectives she failed to honour the summons because she had been out of the country for a long time. But the detectives did not buy her story.
“She did not however tie up this long absence to any business and as such there is sufficient proof that she is a flight risk and that her long absence from the country might affect the ongoing investigation,” Inspector Chrispinus Sore Shibanda told Milimani law courts on Tuesday opposing her application to be freed on bail.
“Releasing her on bail/bond terms shall largely give her an avenue to continue affecting the ongoing investigation by her frequent and long travels out of the country,” added Mr Shibanda who is attached to BFIU under the DCI.
During interrogation, police say Ms Bitutu provided agreements between her companies and eight others which have been associated with the transfer of over Sh400 million believed to be part of the Sh1.5 billion.
According to the DCI, an analysis of bank transactions in accounts owned by Ms Bitutu also showed that Sh38 million was deposited to NCBA and National Bank accounts, registered under Inforide Point Limited, a company she co-owns with her husband, and Kadiki & Advocates, an account Ms Bitutu solely owns, respectively.
Esther Bitutu Kandiki before Milimani law courts on May 7, 2025 for the ruling of the Sh1.5 billion fraudulent case against her.
Photo credit: Billy Ogada | Nation
The court was told that in all instances fictitious narrations regarding the actual source of the funds were made in the bank systems in order to conceal or disguise the nature of the source, location, disposition or movements of the funds.
DCI then exposed details of the elaborate scheme through which Equity Bank lost Sh1.5 billion in just 90 days in a convoluted trail created to conceal the illicit source of funds, and how individuals and companies were used as proxies to execute the theft.
According to court papers, the DCI placed Ms Kadiki at the centre of the scheme that fraudulently siphoned off Sh1,499,465,831 from Equity Bank between May 1, 2024, and July 31, 2024.
“The money was made from the bank’s internal Salaries Remittance General Ledger Account Number 0001*100774** and credited to several non-Equity Bank (Kenya) Limited accounts and in all instances, fictitious narrations regarding the actual source of funds were made in the bank’s systems in order to conceal or disguise the nature, source, location, disposition or movement of such funds,” the police say in their case against Ms Bitutu.
However there is a Sh46.4 million difference between the amount initially reported stolen when the missing banker was arraigned and the figured cited in the case against the lawyer. In both cases, however, court papers show the theft was reported by the bank to BFIU on July 11 2024.
According to an affidavit sworn by Mr Shibanda, Ms Bitutu ran an intricate system, including use of crypto currencies, bulk withdrawals and transfers to other banks to get the Sh1.5 billion out of Equity Bank.
“Towards creating a convoluted trail to mask the illicit source of the funds, such unlawfully credited amounts were subsequently layered by the first-tier beneficiaries through several means or layers of intricate financial transactions including bulk withdrawals, transfers to other bank accounts and purchase of crypto currencies,” court papers state.
The prosecution argued that siphoning the stolen funds was only the last part of an intricate plan, which starts with the recruitment of those to execute the scheme. Police claim Ms Bitutu ran the recruitment process.
“The respondent (Ms Bitutu) is a member of a larger organised group that is well-structured with every individual assigned his or her duties in order to facilitate the commissioning and omission of the crimes starting from recruitment of the targeted bank staff, penetrating of the bank system and identifying, recruiting both natural, artificial proxy persons and or companies whose accounts would be used to launder the proceeds of crime,” Mr Shibanda says.
The police say Ms Bitutu is an “integral player in the planning and execution of the fraudulent activities”.
“These fraudulent activities benefitted her directly...in that she acted as a recruiter of the companies and or persons used as proxies/agents whose accounts were used to launder the stolen funds; she played part in drafting business transaction agreements between companies on non-existing business activities which agreements were used to explain the source and or for the justification of the large cash withdrawals from the benefiting accounts,” Mr Shibanda told Milimani Chief Magistrate Onyina.
The investigating officer told the court that despite Ms Bitutu having been involved in the drafting of the fictitious business agreements between companies, she has been unwilling to provide information regarding the real faces behind the said agreements, arguing that she did not meet the individuals.
“As an advocate of the High court of Kenya, such narrative can only be better understood to mean she is protecting those people. In so doing, her freedom shall continue to jeopardize the yet to be concluded investigations,” Mr Shibanda says in court papers.
BFID, the magistrate heard from the Director of Public Prosecutions (DPP) Renson Ingonga through a prosecuting counsel Joyce Olajo, will conduct a thorough money trail with an intention to arresting the suspects involved and recovery of proceeds of crime.
Some of the accounts to be probed include that of Inforide Point Limited which Ms Bitutu co-owns with her husband at NCBA.
Another is that of Kadiki & Advocates held at National Bank of Kenya Limited (NBK), which Ms Bitutu solely owns.
The advocate will also be investigated for her role in drafting business agreements on none-existing business activities.
Ms Kadiki is being investigated for the criminal offences of money laundering contrary to section 3(a) (i) as read with section 16(1)(a) of the Proceeds of Crime and Anti-Money laundering contrary to section 3(c) as read with section 4(10 of the prevention of organized crimes Act, computer fraud contrary to section 26 (1)(a) as read with section 26 (2)(b) of the computer misuse and cybercrime Act 2018.
She is also under investigations for stealing contrary to section 268 (1) of the Penal Code and handling of stolen property contrary to section 322(1) as read with section 322 (2) of the penal code among other offences.
When Ms Bitutu appeared before Milimani chief magistrate on Tuesday, her lawyer Ken Echesa applied to have the advocate freed on bail saying she is not a flight risk and that she will turn up to face justice.
The prosecution opposed her release on bond saying she had declined to comply with police summons since October 2024.
