Nine Family Bank staff have been suspended over the Sh791 million fraud at the National Youth Service.
"These members have exited from our employment. It is difficult but necessary to ensure strict compliance with our fiduciary in Kenya," CEO Peter Munyiri said in a statement on Tuesday.
Munyiri said to protect the reputation of the bank, staff mentioned in corruption will have to leave work until they are cleared by the authorities .
"The fight against corruption is not the province of few institutions but a partnership of many players including all citizens and all institutions in Kenya," he said.
On November 18, the DPP asked Central Bank to investigate and obtain statements from seven Family Banks officials into the NYS scam.
Keriako Tobiko said the seven will be probed "to determine whether they should be charged for facilitating, aiding or abetting the theft of the amount from the NYS.
They include; branch manager Robert Nyaga, operations supervisor Martin Kagiri, relationship manager Meldon Onyango, branch customer service supervisor Josephine Waira.
Others are the platinum manager, the head of the risk and compliance department and Nancy Njambi as the other suspects.
On November 13, Deputy President William Ruto's aide Farouk Kibet was questioned and recorded statements over the Sh791 million NYS scandal.
Kibet told investigators he did not know millionaire Josephine Irungu, in whose three Family Bank accounts the amount was irregularly transferred from the service.
Investigating officers believe influential businessmen used Irungu as a front to siphon the money through fictitous supplies by companies whose accounts the money was deposited into.
On October 13, a court allowed a fraud investigator to find out how Sh800 million was allegedly stolen from NYS and transferred to a Family Bank account.
The funds were allegedly sent to account 065000007849 under Form Home Builders, held at the bank's KTDA plaza branch in the name Sam Mwadime.
The money was later transferred to more than 10 banks, including several head offices and some law firms.
The banks include Barclays, Equity, CBA, Standard Chartered, KCB, Chase, Diamond Trust, K-Rep, Prime, Paramount Universal and Family.