Kenya’s $12 million Equity Bank scandal takes new twist after businessman’s death

Kenya’s Ksh1.5 billion Equity Bank fraud investigation has taken another dramatic turn after businessman Joel Mwangi Wainaina died, whose name had appeared in a separate dispute over a reported Ksh478 million ($3.68 million) investment in Fanikisha Microfinance Bank.

Wainaina died on October 27, 2026, seven days after a lorry reportedly ran over him and a mechanic who was helping him change a flat tyre in Ruiru. The mechanic died at the scene, while Joel Mwangi Wainaina was treated at Kenyatta University Teaching and Referral Hospital and discharged. A postmortem examination reportedly attributed his death to internal injuries sustained during the incident.

His family suspects foul play, while Ruth Muthoni Kamau, who was linked to him in the Fanikisha dispute and investigated separately over the Equity Bank fraud, also alleged that he was murdered. Police say they are examining different theories surrounding his death.

A Ksh478 million ($3.7 million) investment sparks ownership dispute

According to court documents, Fanikisha majority shareholder Geoffrey Kariuki Gathimbu told the Kiambu High Court that Wainaina approached him in early 2026 with a proposal to acquire 49% of the microfinance institution. The proposed changes reportedly placed Wainaina on the company’s shareholder and director records, while Gathimbu retained 51%.

The transaction subsequently deteriorated into a dispute over who actually controlled the institution. Gathimbu alleged that Wainaina was acting as a proxy for Muthoni, who was already under investigation in connection with the Equity Bank scandal.

He further claimed that Wainaina handed administrative credentials to Muthoni, who allegedly changed server access tokens and assumed control of the institution’s digital platforms without proper corporate authority.

The reported Ksh478 million ($3.68 million) investment raises questions about its source, beneficial ownership and the parties who ultimately stood to benefit. However, the amount was attributed to sources familiar with the matter and was not expressly disclosed in Gathimbu’s court filings.

Equity Bank fraud investigation remains active

The Fanikisha controversy has drawn attention because of its connection to the 2024 Equity Bank fraud investigation, in which approximately Ksh1.49 billion ($11.47 million) was allegedly diverted through fraudulent transactions disguised as salary payments.

Former bank employee David Machiri Kimani was identified by Equity as the person whose credentials were allegedly used to execute the transfers. Muthoni and Geoffrey Kiragu were among those investigated, although both denied involvement.

On November 4, 2026, the High Court allowed Equity to freeze assets worth a combined Sh303.2 million held by individuals and companies allegedly connected to the disputed funds. The orders covered accounts at several financial institutions and cryptocurrency holdings.

The asset-preservation orders do not constitute criminal convictions, and the court cautioned that Equity’s eventual success at trial was not guaranteed.

Final meetings before the Ruiru accident

Phone records reportedly placed Wainaina along Kiambu Road on October 20, where he met Fanikisha co-founder Geoffrey Kariuki Mboo. Mboo told the Nation that Wainaina was seeking an out-of-court settlement that could resolve the ownership dispute and end litigation involving him and Muthoni.

Advocate Paul Mucai also said he spoke with Wainaina that day about settling their differences and arranging a meeting the following morning. Wainaina died before that meeting could take place.

His death leaves major questions about the proposed investment, the alleged transfer of corporate access credentials and the financial relationships surrounding Fanikisha Access Capital Group Limited.

Detectives must also establish the circumstances of the Ruiru incident and whether it was an accident. The allegations against the individuals involved remain unproven, but the overlapping financial disputes and Wainaina’s death make a thorough, transparent investigation essential.