How Jumia Kenya employee siphoned Sh21M by manipulating vendor payment records

In September 2022, it was discovered that an employee at Jumia Kenya, an e-commerce firm, had stolen approximately $150,000 (Sh21.2 million).

According to the company, the unnamed employee managed to manipulate vendor payment records to siphon the money.

Jumia Technologies AG, the parent company of Jumia Kenya, disclosed this information in its latest filings to US regulators.

“We have experienced improper practices, including practices engaged in by our independent sales consultants and a small number of our employees. For example, in September 2022, we discovered that an employee in Kenya manipulated certain vendor payment entries and misappropriated payments in 2021 and 2022.

“While the financial impact in this case was not material (below $150,000), any such illegal, fraudulent or collusive activities by our employees could have a material adverse effect on our business, financial condition, results of operations and prospects and could subject us to liability or negative publicity,” the company said.

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Jumia added that allegations of employee misconduct led to the improvement of internal controls and our cash reconciliation system.

Jumia's e-commerce platform allows vendors to list goods, and buyers can order and pay for them before or upon delivery.

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The company acknowledged the challenge of anticipating, detecting, and addressing fraudulent activities due to the large number of participants on its platform and the fragmented nature of its business.