Parliament has launched investigations into a fast-growing fraud scheme that appears to be targeting retirees moments after they receive their lump-sum pension payments from the government.
According to the Senate, the syndicate somehow gains access to pensioners’ confidential banking information, allowing criminals to monitor account activity and drain the funds under mysterious circumstances.
Migori Senator Eddy Oketch raised the alarm in the House, warning that criminals seem to be obtaining highly sensitive personal banking details. He said this access enables them to track government disbursements and strike almost immediately after pension payments hit retirees’ accounts.
Oketch highlighted a recent case involving a retired teacher who lost her entire Ksh2.4 million lump-sum pension moments after her bank deposited the money.
“I am seeking a statement from the Senate Finance and Budget Committee regarding the number of fraud-related cases involving funds held in Absa Bank accounts since 2022, and the status of investigations into each of them,” Oketch said.
The senator further questioned whether the Central Bank of Kenya (CBK) and the Directorate of Criminal Investigations (DCI) are aware of the rising cases and what concrete steps they have taken to stop the fraud.
He urged the committee to examine whether Absa Bank has addressed any system loopholes that could have allowed fraudsters to access personal data and track customer transactions.
“We would like to know the oversight mechanisms the CBK has put in place to ensure banks take adequate steps to safeguard customer deposits and ensure the confidentiality of personal information. Banks must also take responsibility for systemic lapses that result in the fraudulent loss of funds,” Oketch added.
Narok Senator Ledama ole Kina echoed the concerns, calling on the Senate Finance Committee to thoroughly investigate the matter. He urged Absa Bank to strengthen staff training so employees can easily identify and flag suspicious activity. Ledama noted that banks often scrutinize incoming transactions but may overlook unusual withdrawals.
“These are crucial issues to discuss, especially in determining whether we need to develop additional legislation to protect senior citizens,” Ledama said. “If we don’t, we’ll continue allowing them to fall prey like a wolf preying on the vulnerable. It’s unacceptable.”
Nyamira Senator Okongo Omogeni pushed for Absa Bank’s CEO to appear before the Senate to explain the alleged security breaches, particularly cases where customers lose money shortly after visiting the bank.
He warned that some bank staff may be colluding with criminals, citing the experience of a retired police officer who withdrew money to pay his workers, only for thugs to rob him moments after he left the bank.
“We cannot allow the very people entrusted with our money to betray that trust,” Omogeni said. “We must invite the Director of Criminal Investigations to clarify whether investigations are underway, whether any arrests have been made, and whether reports of insider collusion are being addressed.”
The post Absa on the Spot as Senate Investigates Pension Fraud Targeting Kenyan Retirees appeared first on Nairobi Wire.
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