Personal Finance Discipline, Working Environment and Fraud in the Commercial Banks in Kenya

Abstract

The rampant fraud committed in the commercial banks has been of surprise to many. Banks have continuously come up with measures which can be used to reduce fraud especially the one committed or instigated by its own staff. Of notable surprise is the trend the banking fraud has taken as year in year out, central bank of Kenya has been reporting an increase in fraud committed by staff. Personal Cash Management of individuals has come in to question as to whether poor personal finance discipline of staff can lead to staff involvement in fraud. It is also clear that staff instigated frauds are rampant in some areas more than others which is worth investigating. This study sought to investigate the relationship between personal finance discipline of individuals, their working environment and fraud committed especially in the banking sector. The study found out that individual personal finance discipline of staff as well as the environments where these staff work has a correlation to the instances of fraud committed by staff.