A growing wave of discontent is quietly building among Equity Bank account holders, following a series of disturbing reports involving what appears to be a coordinated and highly questionable pattern of bounced cheque deposits.
Multiple customers have now come forward to raise the alarm, claiming that their accounts are being repeatedly targeted with deposits from unknown third parties that inevitably bounce, only for the bank to impose punitive charges against the unsuspecting recipients.
While the affected individuals are not parties to the original transactions and have no prior engagements with the entities issuing the cheques, the financial burden of these failed deposits is being shifted to them through reversal fees and bounced cheque penalties, charges that only serve to enrich the bank at the direct expense of its clients.
Sources familiar with the matter suggest that this troubling phenomenon has been occurring with increasing frequency, with a particular spike in incidents noted over the past few months.
The affected clients, some of whom have lodged formal complaints through customer service channels, argue that the trend reflects systemic weaknesses in the bank’s internal verification protocols, especially in its handling of third-party cheque processing.
“Hello Nyakundi. Kindly keep me anonymous. I recently lodged a formal complaint with Equity Bank regarding a troubling trend that I believe is affecting not just me but quite possibly many other unsuspecting customers. Over the past few weeks, I’ve noticed a very suspicious pattern involving the deposit of bounced cheques into my account. Cheques that I have no knowledge of and that originate from entities I’ve never had any dealings with. What’s alarming is that each time this happens, the bank proceeds to charge my account with hefty penalties for the bounced transactions even though I had no part in initiating or authorizing them. These cheque deposits appear to be completely unsolicited and always end up bouncing yet the financial consequences are passed onto me as the account holder. This has now happened multiple times and the only party that seems to be benefiting from this setup is the bank itself, which collects reversal and penalty fees every time such an event occurs. There is zero clarification and no effort made by the bank to verify the legitimacy of these deposits before applying the charges. I am raising this issue because I genuinely believe this could be a systematic loophole, either through negligence or design, that’s being exploited, and I’m certain I’m not the only one experiencing this. It’s time for this matter to be highlighted, investigated, and exposed.”
This emerging pattern raises serious questions about both operational integrity and regulatory oversight within Equity Bank’s retail and corporate banking departments.
Under standard banking practice, cheque clearing processes should include rigorous checks to validate both the source and the legitimacy of a cheque before any liability can be attributed to an account holder.
The failure to do so and the subsequent imposition of charges on an uninvolved customer not only violates principles of consumer fairness but may also breach regulatory expectations under Kenya’s banking laws and the Central Bank’s code of conduct for financial institutions.
More worryingly, this trend appears to function in a way that disproportionately benefits the bank itself, as bounced cheque fees are treated as revenue streams, raising the spectre of whether lax controls are enabling, or even silently encouraging, this exploitative loophole to persist.
Customers affected by this scheme are demanding urgent intervention, not just from Equity Bank’s senior management, but also from the Central Bank of Kenya and the Banking Fraud Investigations Department (BFID), with calls growing for a full audit of cheque handling practices across the sector.
If left unaddressed, this could develop into a wider crisis of confidence in digital and cheque-based banking services, at a time when consumer trust in financial institutions is already under strain from rising transaction costs, opaque service charges, and harsh economic times under the current regime.
We will continue to monitor these developments closely and invite other affected customers to come forward with their experiences.
Have you experienced unexplained cheque reversals, suspicious charges, or similar irregularities in your Equity Bank account?
Let us know through any of our social media platforms.
Your identity will be protected and your contribution will help hold financial institutions accountable.
