Title: Ugandan Ex-Bank Executive Kenneth Onyango Arrested in Stock Loans and Agent Financing Fraud Probe

Former Equity Bank Uganda Executive Director for Commercial Banking Held by Police

Kampala - Ugandan police arrested Equity Bank Uganda’s former Executive Director for Commercial Banking, Kenneth Onyango, on Thursday over allegations of stock loans and agent financing fraud.

According to media reports, Onyango was detained by Kampala Metropolitan Police on orders from the Directorate of Public Prosecutions (DPP). Police spokesperson Patrick Onyango declined to comment, stating that a formal statement would be released on Friday.

Equity Bank Uganda’s Response

Equity Bank Uganda refused to discuss the arrest, citing ongoing investigations. The bank issued a statement acknowledging the involvement of “people of interest,” which included staff and clients, relating to potential fraud on their stock loan and agent financing products.

Previous Arrests and Charges

Five former Equity Bank employees, including top management, have already been charged for their roles in suspected fraudulent loans worth $16 million (Ush62 billion), dating back to March 2021. Among the suspects are Julius Musiimenta, Erina Nabisubi, Fred Semwogerere, Crescent Tumuhimbise, and Wyclif Asiimwe. These individuals were remanded to prison following their appearance at the Anti-Corruption Magistrate’s Court.

Additional Suspects

Sources close to the investigation have confirmed that Onyango was apprehended with three agent banking operators. Police have taken into custody two more individuals linked to the ongoing investigation.

Complicity Between Bank Staff and Agent Banking Super Agents

An investigation led by the Bank of Uganda uncovered complicity between some bank staff and certain “super agents” in agent banking operations due to their high net business value. In response, the Bank of Uganda has subsequently ordered a forensic audit to ensure the safety of depositors’ funds and alleviate public concerns.

Kenneth Onyango’s Background at Equity Bank Uganda

Onyango, an Equity Bank veteran with significant experience in risk, operations, and business portfolios, previously held commercial banking duties before his abrupt departure last month.