The High Court has allowed Equity Bank to freeze bank accounts and cryptocurrency belonging to four individuals and six companies accused of receiving part of about Sh1.5 billion allegedly diverted from the lender through fake salary transactions.
The court capped the frozen accounts at a combined Sh303.2 million and ordered that any identifiable cryptocurrency be converted into ordinary currency within 10 days. The ruling was made public on Wednesday, November 4, 2026.
The judge found that Equity had made a strong case that called for answers from the defendants. “The plaintiff has demonstrated a right that strongly appears to have been infringed by the defendants so as to call for an explanation or rebuttal,” the judge said.
He added, however, that the outcome of the case was not certain: “I am not saying that the plaintiff will obviously succeed at the full trial.”
The case concerns Sh1.49 billion that Equity says was diverted from its salary-processing general ledger between November 2023 and June 2024. Equity processes salaries for its corporate clients, using employee details, pay amounts and funds provided by employers.
It alleges that its then salary-processing manager, David Machiri Kimani, misused his authorised access to the ledger to make transfers that had nothing to do with genuine salary payments.
The bank told the court that the money went to accounts belonging to third parties, after which, “in a web of fraudulent transactions, the monies or part thereof, was further converted to cryptocurrencies held by some of the defendants”.
It accused Kimani, businessman Owen Karanja Kuguru, businesswoman Ruth Muthoni Kamau and the companies KT Owen Group, Axteron Technologies, Mac and Gray Trading, Blue Kenfresh, Goodmans Fresh and Muda Ventures of colluding to defraud it. The bank claimed that “those companies were incorporated specifically for that purpose”.
Equity argued that the trail of transactions and the links between the companies showed a coordinated scheme. It said there was a real risk that the money could disappear, especially as cryptocurrency can be moved quickly.
The defendants have denied the claims. Kimani’s father, Joseph Kimani Machiri, filed an affidavit as his son’s guardian, denying that Kimani owned cryptocurrency accounts or authorised the transactions, and disputing Equity’s figures.
Kuguru said his companies, Axteron Technologies and Mac and Gray Trading, provide trade finance, import and shipping services. He said the payments they received from clients were legitimate, and that the firms did not know the money allegedly came from Equity.
Muthoni, who owns Blue Kenfresh and Goodmans Fresh, argued that Equity had obtained her confidential banking and personal information unlawfully and in breach of an earlier court order. The judge dismissed her application because it relied on an affidavit sworn by her own lawyer on disputed facts.
He said an advocate should not act as both counsel and witness, and described the affidavit as hearsay. The question of whether the information was obtained lawfully was left for the full trial, where she may raise it again.
The court set limits on each frozen account. These included Sh156.2 million for Axteron at UBA and Absa, Sh30.8 million for KT Owen Group at NCBA, and Sh14 million for Mac and Gray Trading at Stanbic and Co-operative Bank.
Blue Kenfresh’s Co-operative Bank account was capped at Sh32.8 million and Goodmans Fresh’s at Sh24.2 million, while Muthoni’s NCBA and Co-operative Bank accounts were capped at Sh36 million, and Muda Ventures’ UBA account at Sh8.7 million.
The court also froze digital assets held for Kimani, Kuguru and Muthoni on Binance and other platforms. If they fail to convert the holdings within 10 days, the platform operators may identify and convert them.
The money will be deposited in a tier-one bank licensed by the Central Bank of Kenya (CBK), with the CBK acting as escrow agent until Equity’s recovery suit is decided. The judge, however, declined Equity’s request for further tracing and accounting orders.
The alleged fraud was uncovered after an internal review found suspicious transactions passing through staff bank and mobile money accounts. More than 40 of the transactions were made using the manager’s credentials. Following the discovery, Equity initially dismissed about 195 employees.
